Data quality (or the lack thereof) and its influence on your CX
In the age of the empowered consumer, if you don't really know your customers then they're going to find a competitor who does. High quality, managed customer data will help you keep your customers, because it enables you to make the right offer to your customer at the right time and through the channel that they prefer.
So that’s the theory. But are we really aware that high quality data is key to a great customer experience? Because it seems like something is holding companies back, or at least that’s the story these numbers tell us:
“Data decays at an average rate of 2% per month - 25-30% of your organization’s contact data goes bad each year.”
Data goes bad very quickly. It decays at an average rate of 2% per month which means you should expect 25-30% of your organization’s contact data to go bad each year under normal circumstances. Poor data quality may have a direct impact; minor, like the annoyance of receiving two or three identical mailings within the same week, or severe, like identity theft that results from poor data validation or verification. It can also have an indirect impact, like waiting on hold for 20 minutes while an agent or a customer service rep tracks down your information. Whatever the impact, it certainly isn’t good for the level of service, nor for the image that companies are trying to maintain.
“On average organizations use 36 different data sources, with little integration. As a result up to 88% of available customer data is ignored.”
Statistics from Forbes Insights and Forrester Research say that on average organizations use 36 different sources of data for their marketing efforts. Only a quarter of the organizations felt that customer communications and the data were fully integrated, while 13% reported no integration at all. Ultimately what Forbes and Forrester concluded is that these data silos lead companies to ignore as much as 88% of their customer data. That makes it difficult to know your customer indeed…
“Six out of 10 marketing professionals say that the lack of a single customer view is an obstacle to their success.”
A single customer view creates a solid data foundation with which to overcome data-related challenges, optimize data-driven marketing strategies and work towards improving CX. However, if you look at the statistics, they show that relatively few companies are accomplishing this. Instead, customer data is stored in spreadsheets, collected but hard to access. On average, only a quarter of marketers are able to connect their customer identities across multiple systems. Six out of 10 marketing professionals surveyed by the Customer Data Platform (CDP) Institute said that the lack of a single customer view was an obstacle to their success, surpassing problems like budgeting and staffing!
“Good data quality makes employees spend 33% less time looking for data and 33% more time acting on it.”
For many companies, the first step towards data quality, data management, and a single customer view, is that “Aha” moment when they first realize that poor data quality is the root cause for a particular business initiative failing to achieve the results that they were looking for. Once they recognize the problem, the next step is to improve the data to meet their business needs. After all, nothing promotes good data practices like a failed initiative.