CRM data is a crucial component to making and ultimately growing revenue. That is why companies are attempting to maintain and improve this core data. Unfortunately, much of this information is most likely wrong. According to Gartner, 25% of CRM data is incorrect. Over the long term, this poor data adds up and costs companies dearly. The 1-10-100 rule states that is costs $1 when the data comes in, $10 to maintain and $100 of lost revenue on the account if nothing is done.
To keep data consistently healthy, companies should look to follow 4 simple steps.
1. Check the data as it enters the system
Getting the data right at the point of entry is key to almost everything else in the process. That is why whenever data comes in via shopping carts, Web forms, or calls it must be verified as best as possible. Once this data is verified, sales people know that it will be good for their initial follow up which is the time with the highest likelihood of closing a deal.
When the data is poor or unusable, the company wastes money and does not close a sale. This has lead to the cliche “garbage in, garbage out” which means that if the data going into the system is poor, there will be no success coming out of it.
The data entry point is also the time when it is cheapest to verify data because you are already in communication with the lead. Afterwards, more challenging or time consuming methods must be used to re-establish communication with the client at a convenient time.
2. Add any missing data
When leads come in, they often are not complete with all the fields you require. For example, trade show lists may just have names, companies and emails, while lacking titles and phone numbers. Similarly, a lead from a website may choose not to fill in some of this pertinent data.
Filling in missing data really helps sales people reach their clients and improve marketing efforts. That is why periodic attempts to update missing fields is crucial. This can be done by an online scraper that searches LinkedIn and other public source of information. Or it may be painstakingly by each sales person as they conduct meetings or contacts with clients. As soon as they have finished their meeting, they can update the CRM with any data gleaned.
3. Deduplicate records
Deduping is a fairly straightforward process that can be automated by basic scripts. However, the more information you have the more complicated it can be. For example, the same person might be at multiple organizations over time, making the removal process more complicated. Additionally, if two clients are located in the same building, the system may also accidently remove information that should remain. For that reason, the deduping software must be tried and tested. Studies suggest that about 10% of CRM data is duplicate information.
4. Keep records up to date
Of course, CRM data is constantly changing with people and businesses moving. Each year, about 11% of these groups relocate. That means the data must be constantly verified and updated. The best way to do so is to generate automated email confirmations. These include text fields within an HTML box in the email or lead to a landing page where info can be updated. Phone calls on an annual or quarterly basis may also be acceptable.
M1 Data and Analytics is a leading provider of data cleaning, analysis and consulting. The firm has helped many small, medium and large companies take their CRM to the next level to boost revenue and profits. Learn how M1 can hygiene your CRM data.
Topics: Data
