In a recent survey conducted by helpIT systems, almost 25 percent of respondents cited finances as the biggest hindrance to maintaining superior contact databases. We get it. Data quality solutions can carry what may seem to be a hefty pricetag, and they won’t show up two days later in a nicely wrapped package like an Amazon Prime purchase. As such, like any other expensive and complicated decision, data quality may well get pushed to the bottom of the pile.
Then again, just like going to the gym or eating salad instead of steak, the toughest behaviors to adapt are usually the most beneficial. Because even though database management may be something we’d rather forget about, 40 percent of those same respondents stated that their companies were losing tens of thousands of dollars each year due to poor contact data quality. So while the solution may not be cheap and easy, the cost of living without it does not appear to be either. Data Warehousing Institute found that the cost of bad data to US businesses is more than $600 billion each year. Is that a number your company can afford to ignore?
Many businesses do notice these dollars disappearing and choose to do something about it. Unfortunately however, this is often simply a “quick fix”. They look at their messy databases, pay someone to “clean them up”, and then everyone gets a pat on the back for a job well done. And it is. Until someone enters a new record in the CRM, a customer moves, or perhaps even dares to get a new phone number. And I will shock everyone by reporting that this happens all the time. Studies indicate up to a 2 percent degradation each month…even in a perfect database.
Right now you’re probably picking up on the fact that maintaining good data is going to cost money. You’re right. But the fact is, avoiding that cost is only going to cost more in the long run. Just like having a well-trained sales team, a finely-targeted marketing plan, or a boss with years of experience…great results are an investment of time and resources rather than a happy accident.
Companies that choose to invest in good data quality, as well as to view it as an ongoing process rather than a simple one-time fix, are finding that the benefits by far outweigh the initial costs. Advertising dollars are reaching their intended audiences and sales calls are reaching the right recipient, with customer satisfaction going through the roof. Today’s consumer expects the personal touches that can only come from having an accurate and up-to-date Single Customer View, and it is good data quality solutions that will achieve them.