Recently, Gartner had claimed that we spent about $18 billion on CRM tool in 2012 and roughly about $20.4 billion last year. In fact, the research firm also went on to state that CRM will continue to be at the heart of digital initiatives in the next few years.
The future of CRM domain is shining and businesses can clearly realize the true benefit of this tool as it offers improved returns, staff morale and considerable rise in productivity levels.
But, often a CRM is witnessing the lurking of a silent virus that can slowly strengthen its foothold in the system and depriving of all oxygen. With the CRM started to suffer, the business also starts to falter.
So, now getting back to the virus? Does the play the role of a secret assassin of the CRM software? According to me, it is the weak data quality. It wastes not just time and money, but it also spends more time aiming to cure the problem.
As the CRM tool is simply a framework, the data stored within it has the potential to drive success.
This can be deadly in nature
With the passage in time, not just the data becomes old but also becomes less accurate and becomes more prone to error. This process is very predictable in nature and it is also nearly organic. Analysts have placed the data decay rate at 2% per month and roughly about 22.5% per annum.
Data quality is a major problem which every business faces. For instance, take a close look at the contact database used by the marketing department. It requires most appropriate contact records to send out the communications apart from being able to successfully segmenting the database efficiently.
Overall, it is projected that about 50-75% of the marketing campaign success is dependent on the accuracy of the data being used.
The quality of CRM data is not just a marketing problem and also the sales team completely relies on the tool to offer them a hotline right to the clients. The support team is also required to know whom they are offering support along with the executive team is needed to have complete faith in the reports they are reading to opt for a healthy business decisions.
It is essential that clients trust all departments to successfully handle their data ethically and also lawfully.
When a CRM is facing crisis, it cannot offer support to business in any of those activities. It also cannot be stated to serve any department well. And, when you are in no position to review the needs of the clients in confident manner, making use of the correct details, you will also require managing your reputation and also pay fines when they start making complaining.
A slow death
Target Marketing’s 2001 survey claimed that just 70.8% of the contact records had a minimum one change in a time span of one year. It is easy to find out how the CRM can be assassinated within few months.
The only possible way to stop the virus is by practicing good data hygiene, making use of CRM data quality solutions that provide sufficient protection against decay.
In other words, it also means consistent checking the CRM data for possible errors making use of the specialized data quality software and also making sure that new errors are not launched at this entry point.