14 July 2020
Reports show that 95% of organizations are negatively impacted by poor quality data.
Data has become an invaluable resource for companies across all sectors. Effective leveraging of data can improve processes, reduce inefficiencies, enhance decision making, and even increase your revenue.
However, it is not enough to just have database technologies in place and access to your company’s data.
Data that is inaccurate, out of date, or improperly structured can cause more harm than good. If your company’s data is not clean, chances are your employees are wasting substantial amounts of time trying to work with it. What’s more, inaccurate data could also be skewing your decision-making, impacting customer satisfaction, and creating a drain on your budgets.
To prevent these and other circumstances, read on to find out why it is essential that you clean and maintain company data.
Data is integral to customer service
One of the top reasons why a company database needs to be clean and up-to-date is because data is integral to customer service.
Research has found that poor quality data directly contributes to customer dissatisfaction.
For example, if an agent does not have access to accurate data they cannot inform customers optimally through the sales process. Without the ability to draw on data around customer purchases and prior service history agents will provide customers with impaired service.
Additionally, if agents cannot rely on the data they have on hand, they will inevitably request customers to confirm their personal data. This can result in increased levels of customer distrust.
Clean data enhances sales productivity
Besides optimizing customer service, clean data also boosts productivity in sales.
Cleaning and enriching your company’s databases ensures sales personnel have correct contact details on hand for executives of the companies they are prospecting. Being able to access updated contact details allows sales to save time on their daily prospecting tasks.
The end result of this in increased efficiency and ultimately more sales.
Accurate data leads to informed decision making
Another area where having access to accurate data is key is in decision making.
Informed decision making relies on facts, metrics, and data. This is commonly termed as data-driven decision making (DDDM). Data-driven decision making poses a plethora of advantages over uninformed decision making. Informed decision making can result in faster decision making processes, increased decision making abilities from business leaders and managers, and substantial cost savings.
On the other hand, without accurate data, decision making will be impaired, costs can rise, and leaders and managers will likely miss key growth, scaling, and marketing opportunities.
Research shows that 98.6% of executives report embarking on creating a data-driven culture. To remain competitive, it is imperative that companies invest time and resources into facilitating data-driven decision making.
Good marketing relies on quality data
Another area of operation that relies heavily on accurate data is marketing.
Big data is revolutionizing marketing and sales, and companies who do not leverage this are likely to fall behind in the market place.
Clean data facilitates effective marketing by enabling things like sustainable relationships with customers, response rate tracking, and personalized marketing strategies.
Research shows that up to 90% of consumers say that marketing messages which are not relevant to them are annoying. Out of this, 53% of consumers report that ads for products that do not apply to them are at the top of their list of most annoying marketing messages.
By implementing customized marketing through the use of data, companies can target their marketing at consumers to whom their offerings are relevant. This, in turn, can increase lead generation while at the same time reduce marketing expenditure and optimize marketing budgets.
Another area where reliable data can optimize conversions is through special offers. Through analyzing online behavior, companies can target leads that are perceived to be ready to buy but are hesitating over making a purchase. For example, a site visitor who places items in their cart, but does not carry out the purchase, might only need to be offered a discount on their abandoned cart to complete their transaction.
Compliance issues can arise from inaccurate data
Not only can inaccurate or messy data lead to impacted decision making and customer service—but it can also increase the likelihood of compliance issues.
One area where compliance issues are likely to arise is through duplicated data. In the event that a customer takes a certain action, such as unsubscribing from a company newsletter, if duplicate data exists this change may not carry through to all versions of the customer record. Infractions such as this could potentially lead to regulatory fines.
Better data can equal higher revenue
Besides optimizing business operations, the utilization of clean, accurate, and accessible data can also increase revenue. This is achieved through the different insights and efficiencies that clean data can provide.
For example, examining customer behavior can increase revenue. So can optimization of marketing methods. Cutting costs through informed decision making is another area that will directly increase revenue. Sales increases that result from heightened levels of customer satisfaction will also up revenue.
According to a BARC research report, companies that used big data were able to increase their profits by 8% and reduce costs by 10%.
If your company’s data is in a mess, it will take a certain amount of resources to optimize it and render it reliable. However, figures like these show that this can be more than offset through increased revenue.
Are you in need of clean data and functional database technologies?
For modern businesses, data is an invaluable asset. However, the largest database in the world is worth little-to-nothing if it isn’t clean and accessible.
Having a clean database that employees are able to leverage with ease can result in optimized marketing, highly informed decision making, heightened customer satisfaction, better compliance, and increased sales productivity.
Do you need to audit, clean, and enrich your data? If the answer is yes, and you don’t know where to start, take a look at our services. We offer all-in-one packages, as well as stand-alone consulting services and database technologies such as data integration and CMR’s apps.