As a marketing manager, you understand the importance of having a clean and accurate customer relationship management (CRM) system. Not only does it help you better understand your customers, but it also allows you to more effectively target your marketing efforts. However, there is a problem that many marketing managers face: data decay.
Data decay refers to the gradual decline in the accuracy and usefulness of data over time. Every time an employee either gains a promotion or transitions to a completely new organization, your data is incorrect.
It can have a damaging effect on your marketing efforts, so it’s important to be aware of the causes and take steps to prevent it.
A recent study from the Office of National Statistics (ONS) found that almost 11% of people change their jobs each year, that is a workforce shift of almost 1/3 over 3 years!
For a CRM with 100,000 contact records, 33,000 of those are redundant after 3 years. That’s a lot of out of date data you’re holding in your CRM.
How could you smash your targets when almost ⅓ of your database is redundant?
In this blog, we’ll look at the different types of data decay, how to detect it, and what you can do to keep your data fresh.
The Impact of Data Decay
One of the biggest impacts of data decay is on your customer segmentation. If your data is inaccurate, you may be targeting the wrong customers with your marketing campaigns, which can lead to a lower return on investment. Additionally, you may be missing out on valuable opportunities to upsell or cross-sell to existing customers.
Another impact of data decay is on your ability to personalize your marketing campaigns. With accurate data, you can tailor your messaging and offers to individual customers, which can increase engagement and conversions. However, if your data is inaccurate, your personalization efforts may fall flat.
Perhaps the most concerning impact of data decay is on your compliance with data privacy laws. If your data is inaccurate, you may be sending marketing messages to customers who have opted out or to customers who have moved to a different country. This could lead to significant legal and financial consequences.
How can you prevent data decay in your CRM?
One of the most effective ways is to regularly clean and update your data. This can be done through a variety of methods, such as using data validation tools, conducting regular data audits, or sending out customer surveys to verify contact information.
Another way to prevent data decay is to ensure that your employees are properly trained on how to input and update data. This includes making sure they understand the importance of data accuracy and how to properly use your CRM system.
It's also important to have a data governance plan in place. This plan should outline who is responsible for maintaining and updating data, how data is collected, stored and shared, and how data accuracy will be verified. This will help to ensure that everyone in your organization is on the same page when it comes to data management.
Finally, consider using a data provider who specialize in data accuracy, and can help you keep your CRM up-to-date and accurate.
Lead Onion can be that trusted data provider, helping you gain access to the most comprehensive data solution for marketing and sales. The only intent data platform to provide 1st, 2nd and 3rd party intent data from 17 sources in one single platform, with a cross channel view of your hottest leads.
In conclusion, data decay is a serious issue that can have a significant impact on your marketing efforts. By regularly cleaning and updating your data, ensuring that your employees are properly trained, having a data governance plan in place, and using a third-party data provider, you can prevent data decay and ensure that your CRM is accurate and useful.
Marketing managers should prioritize data decay prevention in order to maintain accurate customer information, target their marketing efforts effectively, personalize campaigns and to comply with data privacy laws. Maintaining a clean and accurate CRM system is essential for the success of any marketing strategy, and can lead to a higher return on investment and more satisfied customers.