Data Quality The Foundation for Effective CRM
Since businesses understand it costs more to acquire new customers than it does to retain existing ones, it pays to introduce current customers to additional products and services. Data quality makes the transformation from new customer to best customer much easier by, among other things, consolidating purchase history.
For example, if a consumer buys a pair of khakis in a company's store, some polo shirts from its Web site, and a pair of loafers via mail order, an offer for casual pants is likely to generate a higher response rate than an offer for a $900 suit. Without a single customer view, however, a call center representative could offer the customer the same pair of khakis he just purchased in the store—at a significant discount. It's no mystery why retention, loyalty and satisfaction rates will increase when offers are generated for goods and services that resonate with customers.
Using solutions that provide an accurate, single customer view also enables you to focus resources on the most profitable customers. With increased intelligence, organizations can more effectively develop and introduce targeted cross-selling and upselling offers that strengthen the bottom line. For instance, by taking measures to identify unique customers across operational divisions, you can avoid the costs and damaged brand image associated with marketing to "John Smith," "John S. Smith" and "J. Smith"—all of whom reside at 123 Main Street in Atlanta, GA.
Data quality also significantly reduces operational costs. Practices such as verifying address data ensures goods and services are delivered quickly and accurately, which is necessary to maintain customer satisfaction. If a company's customer service representatives are entering information into a CRM system that lacks address verification technology, shipments can be improperly delivered due to inaccurate addresses. Incorrectly addressed packages also are penalized by major carriers—even if only the ZIP code is inaccurate—and this can have a costly impact on inventory and supply chain management.