When did you last cleanse your database?
Accurate customer data is invaluable to all types of business. It enables direct engagement with their customers, creating sales opportunities and inspiring loyalty.
Recent analysis from global information group Experian showed that almost 25% of customer records held by UK automotive dealers could be obsolete. The financial cost of incorrect data was estimated in excess of £500,000 per year in ineffective mailings for some of the largest dealers. Smaller dealers were considered to be even harder hit, with an approximate loss of £1000 per campaign. For smaller business this was most likely due to them being less inclined to cleanse their smaller databases because of the perceived cost. This information demonstrates excellent examples of how inaccurate customer records can be costly and damaging to a company’s reputation, thus proving the importance of data cleansing for any size organisation.
Have you contemplated revisiting your company database? Have you examined the impact of NOT regularly cleansing the data you hold on your customer database? There are a variety of software tools to assist companies in data cleansing. However, there are major benefits from also using a human-being; it can provide you with a valid excuse to speak directly to your database. Often when tele-cleansing, the person on the other end of the phone can be very forthcoming with information. It is their moment to update you. They are fed up with receiving information directed to a former employee. Generally, this is a warm call and can be a convenient way to ascertain your contact’s current situation and plans going forward. Thus uncovering a sales opportunity and adding to your sales pipeline.
Data Cleansing can be very time consuming, so a sound strategy is key. A combination of both automation and manual can suit many businesses. Data cleansing software is often used to remove duplicated records and to then identify incomplete, inconsistent or abnormal data that then must be removed manually. Other ways data cleansing software can assist you to keep your business on track is to take care of everyday data entry activities. These ongoing tasks must be monitored all the time; if you want to eradicate the problem of invalid data then you need to monitor these tasks on an ongoing basis.
Ultimately though having an accurate up-to date comprehensive set of information about your customer is imperative to shape the way you contact them. The use of email for mailshot campaigns can be very successful and can be relevant to more than one person in an organisation. It is important within the database record to compile this information and to ensure it is correct. Manual Data Cleansing, through intelligent questioning of your contact can lead to a goldmine of additional information. With Social Media becoming a greater presence for business communication it is very important to discover if they use Twitter or have a profile within Linkedin. This provides additional methods of contacting or targeting your customers and can be a very cost efficient way maintaining contact and building a following and loyalty.
Data cleansing will pay for itself several times over, if completed correctly. Data cleansing will remove large and unnecessary costs in mailing customers and prospects who no longer live or work at an address listed It also reduces the time and cost of telephoning customers and prospects. Overall, campaign effectiveness will increase with better customer targeting. Validated contact details including telephone number, email address and mobile number means not wasting time and money trying to contact customers with incorrect or out of date contact information
Data Cleansing is a way of ensuring you have a professional approach to your database and a way of achieving a maximum return of investment. However, data cleansing is not a one-off exercise and should be built into your business and marketing plan to realise its full potential for your business.