It goes without saying that high-quality data is the foundation of any successful business. But, does data accuracy make it reliable and high-quality in CRM solutions? Not necessarily! Data accuracy or more technically, data integrity is just one part of the entire picture when it comes to CRMs. High-quality data is not only about data accuracy for CRMs, it is also about the value it adds to customer conversions.
In simple language, if your data is not fetching you enough business, then it is definitely of poor quality and what use can it be to you? Having said that, we must point out that even the best enterprise CRM software can fail you if your data quality is low i.e. not contributing to sales conversions. So, how can you ensure high-quality data? Our latest article here will discuss the various aspects of CRM data quality starting. Let us start with a brief on CRM data.
What is CRM Data?
The term CRM data refers to the information collected, stored, and managed by a customer relationship management system. It is a record of all interactions between your company and its customers and prospects. This involves information such as purchase history, contact information, buying preferences, and other relevant data about the customer. CRM data is all about helping a business to better their customers and improve relationships with them finally driving sales.
In a nutshell, it includes:
• Contact information,
• Purchase history,
• Service records,
• Communication channels such as email, website, social media, telephone, and live chat, and
• Insights about customers.
What is CRM Data Quality?
Speaking in simple terms, CRM data quality is the parameter that is decided based on how valuable and effective your data is. Where sales is concerned data quality is the measurement of the extent to which the data is useful for increasing sales performance. CRM data quality is a critical element of a successful all in one CRM strategy. It is important for customer retention, boosting sales performance, and other business operations to run effectively. It primarily deals with 4 main aspects of data in general, and they are:
• Accuracy
Data accuracy is the first level of ensuring data quality. Accuracy means that the data is free from errors such as wrong contact information or a misspelled name. Make sure all your customer data is correct to the last word.
• Consistency
Your CRM data can be termed as consistent when it is uniform with no duplicate or incompatible data across all cross-functional departments working under the same CRM solution. Be certain that all your teams have access to the same sets of consistent data.
• Completeness
If your CRM has all the relevant data required to maintain the customer relationship without any information gap such as purchase history or demographics, then be assured of its completeness. Complete data is important where lead generation is concerned.
• Timeliness
Up-to-date data that reflects the latest changes in customer information is absolutely necessary to keep your business afloat. Make sure that the data gets timely updated and that your sales team is able to make valuable sales pitches.
What is Poor CRM Data and Causes of It?
Poor or low-quality data is referred to as information that lacks accuracy, is inconsistent, incomplete, or outdated along with irrelevancy. Data of such kind often leads to poor decision-making, inferior customer interactions, slowed-down operations, or inaccurate insights.
Data that includes duplicate entries, incorrect customer contact details, and outdated, or missing information is considered as low-quality data in a CRM environment. When your business is going for data-driven strategies or operations, addressing low-quality data is critical to ensure that your strategy is effective and reliable.
There can be various reasons for Poor/Bad CRM Data such as:
• Inaccurate Data
Wrong data entry into your CRM software leads to data inaccuracy. This may include wrong information, entry in a wrong field, or erroneous system formatting.
• Duplicate Data
When the same data has been recorded under different accounts, useless information is formed.
• Invalid Data
If the data is not updated according to the latest customer interactions, the CRM system will produce ineffective information for your business.
• Fraudulent Data
Sometimes there may be intentional entry of wrong data by the different sources to take your business down. These fraudulent data is mostly harmful information for a business.
• Inconsistent Data
When redundant data stays in your system for a long time, it may cause bigger inconsistencies.
• Incomplete Data
There can be also instances when the system may lack the complete information required to make it functional. Such data that does not serve the rightful purpose of the business is considered poor or low-quality data.
Why is CRM Data Quality Important?
Your overall business success is directly proportional to the quality of data your CRM system caters to. If the quality falls, there is a high possibility that your business may lose on some sales opportunities affecting its revenue growth. Here are a few reasons why confirming high data quality is important for your business.
• Helps in accurate decision-making
Your teams will be able to make accurate decisions only if the insights gained from the CRM system are reliable and that is possible when there is high-quality data.
• Improved customer experience
High-quality data helps you to make meaningful interactions with the customers enhancing customer experience in the process. This will help you in customer retention and foster loyalty for a long period.
• Better team collaborations
If your CRM data is consistent and accurate, it can improve collaboration between your sales and marketing teams. This will ensure more effective campaigns and higher conversion rates.
• Boosted business productivity and thus ROI
Quality data allows for more accurate targeting and segmentation, leading to more successful marketing efforts and higher returns on your CRM investments.
• Compliance with data protection regulations
High-quality data protects your business from legal risks and penalties by ensuring compliance with data protection regulations.
Conclusion
All said and done, effective data management is essential for maintaining high-quality data. However, it shouldn’t consume much of your resources. In a fast-paced world, businesses have to face increasing time constraints. Hence, it is essential to have the right tools that can free up your valuable business hours. This allows you to focus on high-impact, relationship-building activities that drive more deals to closure.
Certain top-notch CRMs such as ConvergeHub help high-performing teams to be more productive in terms of sales generation by saving up their efforts on maintaining high-quality data.
