CRM (Customer Relationship Management) data represents a real treasure for businesses. It enables them to make informed decisions based on specific information, and to build strong relationships with their customers. But for this, accurate and up-to-date data is required.
Why is it necessary to regularly clean CRM data, how to proceed, what impact does it have on the company and its customers? We answer these questions in this article.
What are “dirty” data?
Dirty data refers to bad information stored in a customer relationship management (CRM) system. This can include incorrect or misleading information, such as misspelled or incomplete names, invalid email addresses, duplicates, or inaccurate transaction histories.
Such data must be absolutely avoided, as they can not only compromise the quality of analyses, reports, and decisions based on them, but also negatively affect interactions with customers.
Why clean your CRM data?
Ensure the accuracy of information
Inaccurate or outdated CRM data can lead to decision-making errors, ineffective marketing campaigns, and poor communication with your customers. Frequently cleaning your data allows you to rely on reliable and relevant information for making your strategic decisions.
Optimize customer engagement
With clean, accurate, and well-organized data, you can personalize interactions with your customers, thereby strengthening their engagement and increasing conversion rates.
Stay compliant with regulations
With strict data protection regulations like the GDPR, it is crucial to maintain your CRM data to avoid any sanctions. Regular cleaning ensures that only relevant and compliant information is kept in your systems.
4 key steps to maintaining healthy CRM data
1) Evaluation and audit
Evaluation and audit are the first steps to keeping CRM data healthy. This phase involves a thorough examination of the current state of the data to identify inconsistencies, duplicates, errors, and outdated information.
The audit process allows mapping the available data, assessing its quality, and understanding the gaps or potential problems. A comprehensive data audit will help you grasp the extent of the task and have a better idea of the best practices to implement to keep your information clean.
Analytical tools and specialized software can be used for a complete diagnosis, thus providing a solid basis for cleaning and data improvement actions.
2) Cleaning and validation
Cleaning and validation are the stages where CRM data is corrected and optimized.
The first (cleaning phase) involves rectifying the errors spotted during the audit, removing or merging duplicates, and updating outdated information.
The second (validation phase) consists of verifying the accuracy and relevance of the data after cleaning, ensuring they meet quality standards and operational requirements. This process can be facilitated by tools that automate the detection and correction of common errors, thus ensuring the reliability of the data in the CRM.
3) Standardization of data
Data standardization aims to ensure that all information in the CRM system follows a consistent format and structure. This involves establishing rules and standards for data entry, such as the use of uniform date formats, consistency in addresses or terminologies, and alignment of numerical data (like sales amounts or quantities, for example).
Standardization facilitates data integration, analysis, and use within the company, contributing to better communication and decision-making.
4) Automating the process
This involves using tools (APIs) and software to simplify and accelerate the cleaning, validation, and standardization of information. By automating these processes, you benefit from continuous and efficient CRM data management, reduce the risk of human errors, and free up resources to focus on higher-value tasks.
The dual positive impact of cleaning CRM data
Cleaning your CRM’s dirty data goes far beyond simply improving data quality; it radically transforms interactions with customers and positively impacts business performance. Indeed, healthy and well-managed data allow for a better understanding of your audience, thus personalizing your products/services according to its needs. This leads to better outcomes and increased loyalty.
Another advantage is that regularly cleaning your CRM data is an excellent way to reduce superfluous expenses related to data errors management, thus optimizing campaigns and sales strategies.
Cleaning the inconsistent data from your CRM is a key element that enables companies to stay relevant and reactive in their interactions with customers. With the growing volume of data collected and processed today, it’s complicated, if not impossible, to have only accurate information. However, by performing regular maintenance, you give yourself the best chance to interact effectively with your customers and ensure the success of your marketing initiatives.
