Tuesday, June 5, 2007

Poor Data Quality = CRM Failure

This article from BtoB Magazine, How marketers can make the most of CRM data, hits home with RRW. I think the technical term is called "preaching to the choir".

It emphasizes how a CRM implementation can never be a success if the underlying data is of poor quality. If names are old and addresses are bad, CRM system users will NEVER trust that system. And, they won't use it. What a waste of (a ton) of money.

From the article: "Cleaning existing bad data can require a great deal of time and effort, so company leaders who have invested time and money into a new system can be prone to ignore the importance of fixing the bad before bringing in the new. If these data are not taken care of in advance, they will be transferred to the new system and can completely defeat the purpose of upgrading. CRM often involves a significant investment and a substantial amount of employee training, so if you're not using a new system to its full advantage, you'll only end up hindering your business."

The great news is that traditional direct marketers have developed tools to address data quality. Heck, we had to--who wants to pay postage on mail that can't be delivered? So, we are positioned to be key players in CRM installations--we have the expertise, the vendor contacts and the knowledge of appropriate data hygiene and customer data integration technology.

RRW has written a white paper that speaks to the importance of data quality and also provides an overview of the various tools available. Let us know if you'd like a copy.

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