ADVANTAGES OF CLEAN CRM DATABASE
Improve customer acquisitions & experience:
In 2001, Gartner famously reported that 50% of all CRM implementations would be failures1. (We feel they were talking about Clean CRM Database/CRM Data Quality overall), and although it’s been 15 years since that prediction, during which many revised and refined versions of CRM platforms made their way into the market, most of the sales force in the world is still struggling to improve their CRM’s impact on their business, let alone clean CRM Database challenge!!
So why does this software still vex the smartest and most motivated executives? It’s not only due to weak management but also due to improper perspective. The moniker “CRM” misleads people to interpret they are managing “customer relationships,” while actually, they are leading sales forces. Moreover, business leaders underestimate the importance of frequently cleaning and maintaining a Clean CRM Database. They are more focused on adopting the latest and most advanced CRM tools. Any CRM system is as good as the data it holds. And no CRM tool can justify your investment till the data it contains is clean and accurate.
Imagine a typical CRM Database. For one particular customer, it contains user data as the first name, last name, address, e-mail, gender, event data, invoice data, order data, tax data, subcontractor data, seller & shipping data, feedback data- just to name a few. For a medium sized business, the amount of this information is staggering. And most of this data is just maintained for the sake of recordkeeping.
What businesses don’t realise is that they are sitting on a goldmine. Keeping this information and using it judiciously will help you to boost your sales, improve your margins, change your prices adaptively and in the end, drive sales, which is ultimately the aim of installing a CRM. Imagine a proper CRM Database with no redundant entries, updated postal and e-mail addresses, all necessary entries filled-in and correctly linked with invoice and purchase data. This data can help you acquire new customers in many ways:
- If you are running a retail store, analyse your data to see when the maximum crowd turn-out is. Further, by grouping them by their ages, see what the probability of their buying a particular product is. If you happen to have the correct communication details for your customers, you can roll out attractive offers on some particular period of a day/week as a result of your analysis state. Offers are pretty attractive to the millennial group, and these social media wizards are often quick to spread the word and land you more customers.
- You are a company providing multiple, closely related services to different clients. Your company has recently launched a marketing campaign to attract more customers and boost up sales. This campaign is a referral program which benefits both the referral and the referred, upon doing business. If you happen to have an old database, with no segregation of the different niches of your business or worse, outdated details, your campaign is bound to take a hit. Reaching out to the right people with the right set of information, which is meaningful to them is of the utmost necessity. Otherwise, you will end up in your customers’ spam folder, and not only lose opportunities but also create a bad reputation.
Clean CRM Database:
- Targeted marketing is the need of the hour. It helps you attain a different return on a small marketing investment. As a result, based on accurate and updated data, you have an understanding of consumer behaviour and have identified a set of potential customers- those who will employ your services with the highest probability. Targeting such a small group with especially curtailed offers, as against bombarding your whole database with promotions will yield you better ROI. Not to mention, this is only possible if you have frequently updated and highly accurate information of your customers.
Fastweb, an Italian telecommunication company, provides wireline, broadband, and digital television services across Italy. It is a subsidiary of Swisscom.
- Business aims:
In 2014, Fastweb launched a program to extend its ultra-broadband network to 7.5 million customers which are roughly 30% of Italy’s population. By the end of 2016, it embarked upon a digital transformation program to better understand its customers, counter competition and increase margins.2
Customer data was spread across multiple silos in different platforms like SAP ERP and Oracle Billing. Much of this data was overlapping, inaccurate and often incomplete. As a result, customer support faced difficulties in providing prompt service and solutions to subscribers; they needed a clean CRM database.
- Results post CRM Data Cleaning:
Fastweb resorted to data cleaning to help them realise their goals. Data was cleaned in the source system, and integrated into ‘customer hubs’. It provided teams of sales, marketing, and customer service access to clean and accurate data. Fastweb estimates this fresh data will help their customer service department provide the adequate support to customers and thereby reduce customer churn by 80% in the next three years. With more accurate data readily available at their fingertips, management reporting is also more agile and reliable. Fastweb has a 360-degree view of their customers, and they are now closer to their goal of 7.5 million customers.3
There are many more companies who have used data cleaning agencies to clean CRM Database and expand their customer base. Therefore, an increase in customer acquisition at a lower cost is simply one of the many advantages offered by a decent CRM. Hence, read on the next articles to know more benefits of Data Cleaning with proven examples.