Companies are increasingly turning to technology in order to understand their customers and manage relationships better, primarily through CRM (Customer Relationship Management) solutions.
Despite the clear benefits of using a CRM system to streamline customer communications, 50% of projects are seen as a failure. But why is this?
The issues generally stem from data quality. CRM does a great job of storing information around past interactions and customer behaviours, and analysing this insight to inform business decision-making. But the relevance of this analysis is dependent on the quality of your data. Poor data quality can be due to a number of factors, one of which is when the collation of disparate data sources leads to information being entered incorrectly and in the wrong fields.
An example of this is when first names are recorded as last names, and contact preferences are entered incorrectly; information gets lost in translation. The increasing prominence of social media as a means of collecting customer information has exacerbated this problem, with the categorising of data understandably complicated, making it difficult for businesses to leverage the personal anecdotes shared via social networks.
In reality, there is little that businesses can do at the origin of data collection to ensure consistency across all entries, let alone uniformity in the completion of questionnaires, sign-up and contact forms. So the solution must come during integration into the CRM system. If you don’t follow procedures or utilise data consolidation technologies available to validate your data, you will fail to optimise the inherent opportunity to transform sales, marketing and customer services with CRM.