What is CRM Data Cleansing? & Why it Matters

In today’s business world, data is at the core of everything – from shaping marketing strategies to improving customer engagement and operational efficiency. At the heart of this data-driven approach is your CRM system, which holds valuable customer information that drives personalised marketing, better interactions, and increased sales.

But CRM data is prone to inaccuracies. In fact, it’s estimated that 70% of CRM data becomes outdated each year. Outdated, incorrect, or duplicate data can lead to poor decisions, compliance problems, and a subpar customer experience. This is where CRM data cleansing becomes essential. In this blog, we’ll explore the importance of keeping your CRM data clean, how to do it effectively, and how automation tools can simplify the process to ensure your data remains accurate over time.

What is CRM data cleansing?

CRM data cleansing is the process of identifying, correcting, or removing inaccurate, incomplete, or duplicate data within a CRM system. The goal is to ensure that your CRM data is accurate, up-to-date, and reliable, enabling your team to make informed decisions and deliver a superior customer experience.

It's important to note that data cleansing isn't a one-off task; it requires regular maintenance to keep your CRM system running smoothly. We provide an in-depth understanding of maintaining data quality in our data quality blog.

Why cleanse CRM data?

Cleansing your CRM data is crucial for maximising the value of your CRM system. Here’s why it’s so important:

Make informed decisions

Accurate data forms the basis of sound decision-making. Whether you’re analysing customer trends, forecasting sales, or planning marketing strategies, reliable data ensures that your decisions are based on accurate information, not flawed assumptions.
In fact, studies have shown that poor data quality costs businesses an average of 30% of their revenue. By cleansing your CRM data, you provide your team with the tools and insights they need to make informed, data-driven decisions.

Improve the customer experience

Customers expect personalised and relevant interactions with your business. However, this is only achievable when your CRM data is accurate and current. Incorrect or outdated information can lead to uncomfortable customer interactions, such as sending promotional offers to the wrong audience or addressing customers incorrectly.
Research indicates that personalised marketing can increase conversion rates by up to 20%. Cleansing your CRM data ensures that your communications are accurate and targeted, improving the overall customer experience and fostering trust.

Better data segmentation

Effective marketing relies on your ability to segment your audience and tailor your messages accordingly. Clean CRM data allows you to accurately segment your customers based on their behaviour, preferences, and demographics. This precision enables you to create targeted marketing campaigns that resonate with your audience, leading to higher engagement and conversion rates.

How to cleanse CRM data

Cleansing your CRM data may seem like a daunting task, but breaking it down into manageable steps can make the process more straightforward. Here’s how you can begin.

Analyse the data

The first step in cleansing your CRM data is to conduct a thorough analysis. Start by identifying the types of errors present in your data, such as duplicates, incomplete records, or outdated information. Tools like data profiling software can help you detect patterns and anomalies. Prioritise the issues that have the most significant impact on your operations. By tackling the most pressing data issues first, you lay a strong foundation for further cleansing efforts.

Standardise the data

Data standardisation involves ensuring that all data entries follow a consistent format. For example, ensure that all phone numbers adhere to the same international format (e.g., +44 1234 567890 for the UK), addresses are structured consistently with correct postcodes, and names are capitalised correctly.
Poor standardisation can lead to data mismatches and inaccuracies, complicating customer communication and data analysis. Consistent formatting makes your data easier to manage and reduces the likelihood of errors in future data entry and analysis.

Deduplicate the data

Duplicate records are a common issue in CRM systems, often leading to confusion, inefficiency, and even damage to customer relationships. For instance, duplicate data can result in multiple salespeople contacting the same customer, creating a poor customer experience.
Use deduplication tools to identify and merge duplicate records, ensuring that each customer is represented by a single, accurate record. This not only cleans up your data but also streamlines your customer relationship processes. For more detailed insights on this process, you can read our data deduplication blog.

Validate the data

Data validation is the process of checking your data for accuracy and completeness. Implement data validation rules that automatically flag errors such as incorrect email formats, missing mandatory fields, or invalid data entries. Tools like Smart Link can automate this process, ensuring that your CRM data remains reliable and error-free. By incorporating automated validation, you minimise the risk of human error and maintain high data quality standards.

Enrich the data

Data enrichment involves enhancing your existing CRM data with additional information. This could include appending demographic data, purchase history, or social media profiles to your customer records.
More complete data enables businesses to create more personalised marketing strategies and improve customer segmentation. For example, knowing a customer’s past purchases can help tailor future product recommendations, leading to increased sales and customer loyalty. For a deeper dive into this topic, visit our data enrichment blog.

Establish data governance practices

Data governance involves setting up policies and procedures to manage your data effectively. This includes defining who has access to the data, how it should be used, and how it should be maintained.

Establishing clear data governance practices is essential, since it ensures that your CRM data remains clean and reliable over time, preventing issues like data misuse, inaccuracies, or compliance breaches. Effective data governance also fosters accountability within your organisation, ensuring everyone understands the importance of maintaining data quality.

Schedule ongoing CRM data quality checks

Data cleansing is not a one-time task. To maintain the integrity of your CRM data, schedule regular data quality checks. These checks should be part of your routine CRM maintenance, ensuring that any new data entered is accurate and consistent with your existing records.

Automating CRM data cleansing

While manual data cleansing is effective, automating the process can save time and reduce the likelihood of errors. CRM software often includes automation tools that can assist with tasks such as data deduplication, validation, and enrichment.

By automating these processes, you can maintain a higher level of data quality with less effort, freeing up your team to focus on more strategic activities. Explore our Datawise solution to see how our platform can support your CRM data cleansing efforts.

Conclusion

Clean CRM data is key for making informed decisions, enhancing the customer experience, and driving effective marketing campaigns. By following the steps outlined in this guide, you can ensure that your CRM data remains accurate, up-to-date, and actionable.

Data cleansing is an ongoing process that requires regular attention—but with the right tools and practices, it doesn’t have to be overwhelming. Take the first step today and unlock the full potential of your CRM system.

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