What is the real cost of poor customer data?

The impact of poor customer data on business performance is so often unseen and hard to measure, though the effects can be very costly and damaging.

Here are just a few risks to your bottom line that can be avoided by paying attention to accurate data management:

• You risk exposing your poor quality to your customers (how bad is a wrong or mis-spelt name?).
• You waste unseen money, time and resources working with inaccurate information.
• Related activities, which may be outsourced are less effective (Telemarketing, E-mail marketing, direct mail campaigns etc).

Here's a recent example to highlight the issue:

Analysing results by data source following a recent Telemarketing campaign revealed ways in which the client can improve business processes and people skills. Data was provided from 3 sources:

1. Their internal CRM system (35% of total records)
2. A market related database (45% of total records)
3. From a trade association for the target customer group (20% of total records)

Analysis of the results for each:
1. The internal data was the least accurate, containing most 'dead' accounts and contacts plus mis-spellings of company and contact names.
2. The market related data was most general, resulting in the highest 'Not Interested' count.
3. The trade association data was most accurate, provided the highest % of 'Sales Visit' requests with no 'Unable to Contact'.

What can be learnt from these results?
1. Well maintained, accurately targeted data provides for best results.
2. Care needs to be taken over input of internal data - training and reminders to all users is of benefit.
3. Data quality needs to be well maintained over the life cycle of your customer.

For help with your data management processes or any other business development project, please contact Nigel on 01455 292157.

Headway B2B Ltd