Improve data quality in your CRM system

Datenqualität im CRM-System verbessern

"Everything will be fine with a CRM system", we have heard too often in the last two years. The use of a CRM system to record company-wide communication with customers, interested parties or partners, in short all persons and organizations that communicates with your company, has become more and more frequent in recent years. Why the introduction of a CRM solution consists of more than the decision for a manufacturer, we are going to clarify in this blog article!

The data quality in enterprises declines

The use of a CRM system - integrated or independent of the ERP system - has today become a competitive factor that belongs to modern management leadership. It is important to note that, in addition to deciding on the right manufacturer, a general data strategy must also be implemented in the company so that the CRM system is optimally filled with data and the data quality does not deteriorate even if a CRM system is used for 10 - 15 years. According to the current situation, however, this is exactly what is happening. The data quality of CRM systems in German companies has declined in recent years - according to a study by experian, the proportion of inaccurate or false contact data is 19%. If almost every fifth contact in the company is incorrect, the consequences for sales and marketing are immense! This isn’t a problem special for the german market, it’s an international trend.

Typos and incorrectly copied data

To improve data quality in the CRM system, the main reasons for poor data management must be considered. One error that is often underestimated is the entry of typos in the CRM system. If the data is entered incorrectly into the CRM system when typing, for example from a company imprint, the data quality in the CRM system drops. There are various stages to this process: If, for example, the postal code is entered incorrectly, this is far less serious than, for example, incorrect entries for names or e-mail addresses.

Obsolete Records & Entries

Another reason for incorrect data in the CRM system is the fact that data has become obsolete over the years and is no longer up-to-date. If, for example, a decision-maker is to be reached with a mailing, it can happen that he has not been in operation for several years. This should be avoided, because on the one hand it seems unprofessional or the mailing no longer reaches the company at all. Also incorrect e-mail addresses or the old company address are a big problem, which occur quite naturally in the course of time. In order to counteract this problem, a cyclical cleansing of the existing contact data must take place. For this it should be considered whether a software for this purpose could help.

Duplicates are the main reason for poor data quality

However, the main reason for poor data quality in a CRM system is often a large number of duplicates. Especially when new data (e.g. a new contact person) has been found for a lead or contact, it often happens in companies that this data is simply created anew. Duplicates in sales are an absolute no-go! If two different contacts have been created in CRM for the same company and position, it is no longer possible over time  to judge which of the two alternatives contains the correct data. Ultimately, the contact must be qualified again by the salesperson or the marketing department - the time for the actual work of a salesperson - selling - is neglected.

In order to prevent poor data quality, it is indispensable for the CRM introduction that fixed rules and structures are established in a guideline and training courses, which are then implemented by all departments in the company while working in the CRM system. These include, for example, minimum fields:

  • Minimum fields per type (customer, prospect, partner)
  • Optional Fields per Type (Customer, Prospect, Partner)
  • Standard defaults per field (telephone number, addresses, spelling)
  • Structured input process (guide)

These rules can then be summarized in a guideline that covers the lead research process. This document is used intensively when employees are trained at the beginning of their work. In addition, the most frequent mistakes or most important statements should be displayed as an overview for everyone visually present at the workplace.

Software support for the CRM system

Software or comparable services can also be used to support sales or marketing, which researches leads for sales. A distinction must be made between basic and subsequent support. There are many providers on the Internet who offer a service that checks the entries already existing in the system for duplicates and validates any existing address data for the leads. In addition, there are also tools that support the employee already during the input of the leads by the software already at this time the inputs are entered standardized into the CRM. Software such as the snapADDY Grabber for your inhouse lead research or the snapADDY VisitReport for lead acquisition at the fair also uses an integrated duplicate check and an automated updater for existing contacts in your CRM system.