For most businesses, growth can only be achieved in this day and age by relying heavily on customer relationship management technology (CRM). The goal of CRM software is to track all interactions with customers to help improve business relationships. For this to work, the software has to rely on tons of data. When companies collect large amounts of data to base important business decisions on, it is crucial that the data is accurate.
Data cleaning is a way for businesses to find and remove corrupt or inaccurate data from their central databases. This ensures all decisions will be made using data that is consistent, correct and high-quality.
The Process Of Cleaning Data
The process of cleaning up data helps to find corrupted entries and errors to delete, correct or utilize. Steps may be taken to ensure the same errors do not happen again. Most companies find the process to be a daunting one. There are ways to tackle it efficiently or an organization may choose to outsource the task. The cleaning will include:
•Deleting duplicate, missing or inaccurate data entries.
•Monitoring trends in errors that may indicate a larger issue.
•Avoiding data from third-parties.
The Benefits of Data Cleansing
1. Improves Efficiency Of Sales and Marketing
The marketing and sales teams are often the ones who feel the greatest effects of having “dirty” data which contains inaccuracies. Clean data makes it easier to create effective marketing campaigns that can increase customer retention rates.
2. Improves Decision Making
Customer data is necessary for effective decision making. Inaccurate data can influence bad decisions to be made in many departments such as marketing, customer service, product development and more. When it comes down to it, clean data is crucial for the support of better business intelligence and analytics.
3. Productivity Increases
When your database is maintained properly and kept clean, productivity will increase throughout the organization. Dirty databases often result in multiple departments wasting time trying to make sense of inaccuracies. When it comes to customer service, inaccurate information can lead to bad customer experiences. Cleaning your data will allow your employees to make better use of their time.
4. Better Customer Insight
Clean, accurate data can allow businesses to gain insight into who their customers are. This insight is valuable and can help you improve your services and products, marketing methods and customer service communications. Analyzing clean data may uncover new opportunities your business can take advantage of. With dirty data, these same opportunities may have been missed.
5. Increase In Revenue
Some organizations may get the added benefit of increased revenue due to cleaning their database. Removing clutter from your database allows your whole organization to work seamlessly and more efficiently. Clean data can ensure time-sensitive information gets sent to the correct addresses found in the database. It allows customers to be reached quickly and conveniently.
6. Streamline Business Practices
When duplicate data is eradicated from your databases, your business will be able to easily streamline their practices and save money. The process may also help determine if there are jobs in the organization that need to be removed, changed or integrated into other departments. Better accuracy in the data can allow you to evaluate the performance of your services and products and make changes where necessary.
7. Improved Efficiency With Customer Acquisition
Clean data can help organizations increase their customer acquisition efforts. Data quality routines need to be performed regularly to ensure all customer data is up-to-date and accurate. This helps lessen the number of postal and email campaigns being returned. Dirty data can waste a company’s resources by spending money to send marketing materials to inaccurate email and postal addresses.
As businesses grow, they require more resources to help maintain their databases accurately. It can be a huge undertaking, but it can offer substantial results. The clean data may be used in all areas of an organization to improve efficiency, productivity and customer service.