You know the numbers. The cost of acquiring a customer can be 5 times that of retaining an existing one, and you can more than double profits if you reduce churn by just 5%.
Many companies today rely on data insight to understand customer behavior and differentiate themselves through both customer service and product quality. Any form of erroneous or missing data - including inaccurate, incomplete, or duplicated information - can hurt your customer engagement programs, which ultimately depresses customer retention.
A data quality strategy can help you create a better customer engagement experience- including better direct support responses and help reduce churn.
Here are 3 of the most common data quality problems that you can address today:
Ineffective or not enough personalization
A report by Experian cites data accessibility and accuracy among the biggest challenges marketers experience when creating personalized programs, since most marketing programs today are built with personalization in mind. But designing well targeted, personalized communication depends greatly on the quality of your data and on your ability to access and utilize that data.
While incomplete or missing contact data reduces deliverability, working with the wrong information is even worse. Duplicates, in particular, can be even more harmful because they alter reports and may cause marketing to make decisions on misinterpreted metrics.
Regularly checking for duplicate content, cleaning up, and enriching your customer data will help maintain an accurate, up-to-date, and reliable database.
Poor customer service
In a study by the Economist Intelligence Unit, 70% of respondents said their typical response to a bad experience is to stop doing business with the company.
High quality customer support is often measured in the time it takes to solve an issue. When many teams use the CRM, errors can easily make their way when record data is created or updated.
Duplicated and incorrect data then makes it difficult for customer service reps to locate customer data quickly, if at all. Looking into the wrong record, lacking access to case history, or not being able to find data are leading causes of low customer satisfaction.
Improving access to all customer data (including misspelled or incomplete record data) will increase the effectiveness of your customer service reps and customer satisfaction.
Lack of visibility into customer information
Each customer interaction with your business generates a wealth of information. Storing different types of information in different systems can hurt the productivity of many teams, including marketing, sales, or customer support.
Data residing in separate systems also makes it difficult to get a unique, comprehensive view of the customer. Having to manually search each system is time-consuming and doesn’t guarantee all the stored information can actually be accessed.
Enabling your teams to find any data easily can have a big impact on performance and on the quality of service you deliver.
Not sure how to make your data work for you? Start by learning the state of your current CRM data.
Need guidance with specific actions you can take to improve your data quality? We’re here to help!