According to the EMC Digital Universe study, the world’s data is estimated to increase by 40 percent each year through the next decade. That means that our digital universe is actually doubling in size every two years and by 2020, that data could reach as much as 44 trillion gigabytes.
That’s a big number for anyone to wrap their head around.
Bad data not only affects the businesses responsible for it – but it trickles down to impact the customers as well. And no matter how sophisticated your customer relationship management (CRM) systems are, if bad data is present, it will derail that entire process.
For businesses to succeed, and to serve their customers with the highest efficiency and effectiveness, it is essential for the data to be accurate and trusted. And with the 44 trillion gigabyte data deluge on the horizon, it’s key for businesses to recognize the problem now and start implementing the right approach to manage their data properly.
Here’s why better data management can help companies boost their business and better serve their customers:
1. Reduce Costs
Duplicates, incomplete records and inaccuracies can be the bane of any sales and marketing team's existence. For example, bad data can interfere with a company’s ability to keep track of their inventory and, as a result, the store is out of stock when a customer comes in and thus, loses the sale. Putting the right solutions in place can eliminate the costs you might spend correcting your errors.
2. Save Time
We all know time is money. When data is inaccurate, companies waste valuable time and resources searching for that bad data, fixing it and remedying the resulting problems it has caused. In that previous example, imagine the sale isn’t lost and the customer decides to order the item at the store for delivery from the warehouse. Additional labor – and time – is needed to facilitate that special order. Businesses that implement the right solutions from the start can save on both of those in the long run and, ultimately, become more profitable.
3. Increase Response Rates
If the wrong data is in place, you may send the wrong message to a customer and lose that customer for good. For example, at onboarding, a bank’s new customer information is not collected accurately, and information is sent to the wrong individual. The customer never receives the information and thus, is never able to respond. The more accurate your data is, the more likely your message will get where it needs to go – and, more importantly, elicit a response or action from a customer.
4. Boost Customer Satisfaction
Getting your customers' information right every time is not just important for getting your company’s message across. Bad data quality can lead to critical errors, which can damage your company's reputation and scare current – and future – customers away. For example, bad data could cause confusion about a delivery date, and thus the item arrives after the customer needs it. Putting in place the solutions to keep that data accurate, will keep your customers happy and, in the end, reduce churn.
The success of your business and customer relationship management hinges on the quality of your data. Implementing the right solutions to ensure that data quality will not only better serve your business – but your customers as well.
Learn more about using trusted data and insights in context across your enterprise.