Data quality and CRM databases

The importance of CRM databases

CRM databases are an important instrument to build long-term customer relationships. This approach can only be successful using clean data. The Gartner Group predicts failure, or limited acceptance, for over 50 percent of all CRM projects due to lack of data quality.

Higher data quality: higher ROI

High data quality multiplies the success of many measures. This especially applies to CRM databases. The better you know your customers, the more effectively you can communicate with them.

CRM databasesThe following classification shows the benefits of superior database quality:

  • Correct labeling Correct labeling will lead to lower investments for mailings by lower percentages of undeliverability and thus a higher efficiency of advertising. Correct e-Mail addresses, phone numbers, names and positions of contacts persons all correspond to labeling information. Unfortunately these are frequently obsolete. No matter how good your message is: communication will never be effective if not properly addressed.
  • Personalized data Correct, personalization information ensures that the customer feels personally addressed. The personal addressing of letters alone increases the response rate to 15 percent for mailings. In our experience approximately 3% (m/f) gender indicators and almost 5 percent of the salutations are incorrectly - fatal to any dialogue.
  • Selection data This includes, for example, branch coding and for consumer marketing age and type of residence. Specific personalized data, if correct of course, enables selections, target groups and highly targeted marketing campaigns. This will improve results and reduce costs. Selection information must therefore be clearly structured and encoded.
  • Transactional data Transaction data and CRM databases are inseparable. Transactions information can be found in back-office systems. Uniqueness and correctness of data and primary keys is mandatory to ensure correct integration of CRM with back office systems. Customer value analyses and important background information (like purchasing, order history, outstanding invoices, service history and install base) are key for effective sales and building strong relations.

High data quality will optimize the effect of your marketing and sales activities and lower the investments needed for CRM databases. In result your customers and prospects will have a much higher response.

Image source: ©Jakub Jirs├ík - Fotolia