CRM Data Quality, 3 errors in its deterioration
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Outdated data is costing businesses money. According to Validity’s latest “State of CRM Data Quality” study, customer churn, sales shortfalls, and high employee turnover are a consequence of CRM data deterioration.
Data corruption extends to all levels of the organization and can affect brand reputation and customer trust.
“It is worrying that such important decisions are being made in a company using poor quality data. When teams perceive that management doesn’t have a strong stance on data quality, data degradation spreads throughout the organization,” explains Chris Hyde, global head of Data Solutions at Validity.
CRM Data Quality
The company asked 1,200 CRM administrators from 606 organizations around the world what are the most common mistakes that prevent companies from having quality data to the point of jeopardizing their bottom line. Here are their responses:
- Management does not prioritize data quality, One of the main concerns of those interviewed regarding data corruption is that the company’s management does not recognize or support the correction of data, and therefore does not prioritize data quality initiatives. According to the report’s findings, only 19% of respondents said CRM data quality is a high-priority initiative for management, while 25% said management is aware of data quality issues. quality of the data, but does not support any specific initiative to solve them. Another 24% have indicated that management makes decisions without taking into account what the data says. However, the majority of decision makers rely on CRM data to make key decisions within their departments, according to 87% of those interviewed. Although for 91% of them the data requested to make these decisions is “often” (51%) or “sometimes” (40%) inaccurate.
3 Mistakes That Contribute to Data Corruption in an Organization
- Data management responsibilities are unclear, Many times the task of managing data falls into no man’s land. When no one person or team in the organization officially “owns” data quality (or when no one is instructed to do so by management), data quality suffers. To understand how organizations approach data management on a day-to-day basis, Validity asked participants to identify who is primarily responsible for managing CRM data. The study has revealed that the lack of ownership of CRM data is directly related to the quality of the data. Those who rated the accuracy, quality, and overall usefulness of their CRM system data as “poor” or “very poor” were 450% more likely to say that no one is responsible for managing CRM data. your CRM system than those who rated your data as “good” or “very good.”
- Organizations take the wrong steps to improve data quality, In some cases, organizations recognize that data quality is a priority and take steps to remedy the problem. However, many do so ineffectively. According to the study, half (51%) of those surveyed ensure that updates are carried out with manual procedures, 38% do so by complementing the data they have with third-party data, another 35% using third-party data management solutions, 33% cleaning data before importing it into CRM, 26% hiring temporary workers and/or paid interns to improve data quality, and 6% taking no action.