Customer data is extremely important in the digital age. With the advancement in marketing technology, more companies are harnessing the data to personalize and improve customer experience. Though there are plenty of platforms to help organizations gather and store customer data, the majority of CRM systems fail to keep the data up to date.
What is Data Decay?
It is the process of gradual loss of accurate data from a system. Studies say that customer data decays at a rapid rate of 30% and more every year. It is a big proportion. Decayed data gives you a correct view of customers. In fact, there is a negative impact on the entire business.
One should remember that the decay is because the customers are deliberately withholding their information. On the contrary, most studies show that the majority of customers are ready to share their data for a more efficient experience and personalized experience.
When it comes to fighting data decay or gradual loss of accurate data from a system. A little prevention is better than a cure. There is a rule of 1-10-100 about data decay. According to this rule, the cost of preventing bad data from entering a CRM system is 1$. The cost of correcting the existing problem is 10$. But the cost of repairing a problem after it causes a failure is 100$, whether it is internal or with a customer.
The rule very clearly indicates that if the cost of repairing a problem is so high, it is imperative for a company to build strategies around fighting data decay before it becomes a costly affair.
Prevention of data decay
Since the data decay rate is quite high, it is essential to follow practices that prevent data decay. Here are some important and useful tips to avoid the same.
Always engage with the target audience
Yes, it is an important aspect. According to experts, marketers can prevent data decay in a significant manner by engaging with the target audience in a regular manner.
There are various ways of doing that. You can choose interactive content such as webinars, whitepapers, contests, polls and quizzes, and so on. Thus, you can keep CRM data refreshed and updated. You get a lot of additional information about prospects as well as customers.
Not just that, you can send meaningful and relevant data to the audience regularly. Thus, they feel more engaged in your brand.
Get customer data from the customer
Some customers are prompt in updating their information promptly and regularly. However, some are not that particular, and they need a gentle reminder. You can ask customers to update their information in many ways. You can give a popup or tab to “complete their profile”. Or you can encourage customers to customize their accounts and enter contact details. Ask them to enter their preferred contact details.
Make a strategy for data hygiene
You are supposed to cleanse the data regularly to keep the sanity in customer database. Like your home, the database also loses its sanity if you do not clean it continuously. When you practice good data hygiene through routine maintenance, you have to ensure database accuracy. Some best practices include:
It is not possible to do it every time as there are no specialists on the team. However, it is very much possible to outsource the process to those who are experts.
Invest in Third-Party Data
What is Third-Party Data? When there is a gap in the CRM data, you can seek help from a provider. Such providers gather data from several channels, apps, websites, and platforms that provide information about customers and prospects that otherwise you would not have access to.
Not just that, these providers have stringent and systematic processes for data verification and hygiene. So, you can be assured about their validity.
Integrations for CRM data accuracy
When you integrate with an intuitive data platform, you can avoid data decay in the CRM system. It saves tons of time and resources. It prevents the challenges of incorrect or missing data and manual entry. Such data platform updates CRM data in real-time and ensures that data does not decay by keeping the linkages intact.
These are some impactful ways of preventing data decay.