New Articles

The Logistics of Data Quality for Your Marketing and Sales Initiatives

The Logistics of Data Quality for Your Marketing and Sales Initiatives

Global Trade recently highlighted an annual 3PL trend study that indicates one of the biggest goals for logistics companies in 2019 is to prioritize customer relationships.

Developing strong customer relationships relies on effective customer engagement and communications. Most logistics companies are familiar with the technology and tools that help them manage fleets, track inventory, and improve operations. But, a growing number are leveraging customer relationship management (CRM) technology to improve customer engagement and support sales and marketing initiatives. The timing couldn’t be better, because if prioritizing customer relationships is a key focus in 2019, prioritizing the data quality in CRMs is an essential part of the mix.

The Impact of Data Quality

To prioritize CRM data quality, the ultimate goal is a CRM database free of duplicate records, missing or wrong details, and non-standardized entries (e.g., entering Corporation when Corp is preferred). But bad data is added to the system through list imports, manual entry, and typos on web forms when data quality tools aren’t in place to catch duplicate information or invalid data. In the absence of data cleansing routines, even good data begins to decay as contact information changes and companies merge or close.

Without a data management protocol in place, it is impossible to realize the full potential of CRM data to guide business activities. In the case of the logistics industry, muddying reports with user data errors leads to misdirected marketing and sales growth efforts. This can create frustrating interactions with the company, poor customer experiences, acquisition and retention challenges, and ultimately, lost revenue.

The High Cost of Bad Data

The logistics industry is no stranger to the importance of maintenance. Left unchecked, a small problem with a fleet can become a big problem with domino effects that bottleneck the entire supply chain. There’s a similar impact with a lack of data maintenance.

According to the 1-10-100 quality principle, the relative cost of fixing a problem increases exponentially over time. So if the cost of preventing bad data from entering the CRM is $1, then the cost of correcting existing problems is $10, and the cost of fixing a problem after it causes a failure is $100. The issues and costs are compounded as that bad data begins to pollute marketing and sales initiatives, decreasing campaign ROI and reducing customer engagement.

The Two-Step Data Cleansing Process

To stop the cycle, a cyclical approach to data quality and maintenance is needed. The following two-step data cleansing process is a great place to start.

Prevention is the first step. The company must ensure those who use the CRM system leverage best practices for entering and updating data without introducing errors. Examples of clean data best practices include completing all data entry fields required for a record, following a standard naming convention, checking for duplicate records before entering new information, and ensuring the validity and deliverability of email addresses. It’s also wise to consider creating a data governance policy that formalizes these practices and embeds data quality in the company culture.

Remediation is the second step. This involves keeping data accurate with regular data cleansing routines that include steps to remove or merge duplicates, standardize content, and verify email addresses. It should also include checking data against credible outside sources occasionally to determine if it’s up-to-date or stale.

With either step, some areas of data quality and entry are challenging even for the most detail-oriented data users or administrators. This makes the availability of third-party data quality tools that go beyond the native functionality of CRMs an important option. Companies can choose solutions that are compatible with their CRM and should look for those that are particularly effective at supporting data integrity during mass imports, streamlining and automating data quality processes, and customizing how duplicate records are managed. Email verification tools can also be leveraged to verify the email addresses in lists before importing them, directly in Salesforce to support lead follow-up, and at the point of capture (for example, adding an API to web lead forms to verify email addresses as they are entered).

Data Quality Is Logical

There’s a growing trend in viewing quality data as a high-value business asset. Studies show senior leadership is increasingly acknowledging the need to support data quality and 85 percent of corporations indicate they are trying to incorporate data into their business strategies. Likewise, the value of using CRM data to get to know customers better and improve customer experiences is widely recognized.

To achieve significant growth in their customer base and revenue, it’s time for logistics companies to give importance to marketing and sales data the way they’ve given importance to distribution, warehousing, and fleet data. People and human-error, not technology, hold data back. As noted in an article from Salesforce.com, “The value of CRM isn’t in the product; it’s how you use it.”

Implementing a data management protocol is the only way to navigate human error and get the most value from the CRM. The resulting higher quality data will bolster marketing and sales activities, and help logistics companies better understand, reach, engage, and retain their customers. Once the previously mentioned two-step process is in place, companies can revise and refine data quality processes as they learn more about what clean data means and how to deliver great customer experiences using quality CRM data.

Ashley Sierant is a data quality management expert, overseeing successful implementation of Validity tools for clients. Validity is a leading global provider of data integrity and compliance offerings that tens of thousands of organizations worldwide rely on to trust their data.

5 Tech Trends That Businesses Can’t Afford To Ignore

With technology evolving at such a rapid pace, some business owners are left digitally disoriented as they try to figure out which of the latest innovations they need to invest in and what they can ignore.

It can make for confusing times.

All that bewilderment aside, though, these fast-developing advances also create opportunities that can help small and medium-sized businesses become more competitive – if they understand how to seize them.

“Technology exists today that at one time was available only to large corporations with huge technology budgets,” says Chris Hoose (www.choosenetworks.com), an IT consultant who works with small businesses.

“Every year, technology becomes even more accessible to companies of all sizes.”

Hoose says businesses that want to stay on top of their games should make sure they invest in these technological trends, if they haven’t already:

The Internet of Things. Many Internet of Things-connected devices, such as smart refrigerators and thermostats, are designed for home use, but there are also applications for small businesses, Hoose says. Some examples: smart locks use digital keys that can’t be lost or stolen, and log a record of who uses a door and when; RFID tags on merchandise can prevent theft and automatically update inventory; and mobile-card readers can replace cash registers.

Artificial intelligence. Don’t be fooled into thinking that AI is something only the big organizations can afford to use, Hoose says. “It’s making inroads into technologies accessible for businesses of all sizes,” he says. “AI can help you offer increasingly personalized experiences to customers by maximizing your time and automating manual tasks, like data entry.” AI also can be used to improve decision making, Hoose says. Essentially, AI will help you take that jumble of data most businesses have and analyze it in a way that allows you to make better-informed judgments on the actions you need to take.

Telecommuting. The office world is changing and more workers spend at least a portion of their work week telecommuting. “In many cases remote employees use their own equipment, which can eliminate some of the company’s costs with purchasing and maintaining computers, printers and mobile phones,” Hoose says. Video conferencing, instant messaging and other advances are helping to make telecommuting a viable option, he says.

Customer-relationship-management (CRM) software. Any application that a business uses to interact with customers, analyze data, or recommend products and services to customers is “part of the CRM family,” Hoose says. “This type of software helps your team manage, control and build customer relationships,” he says. “It can log your team’s touchpoints with prospects, including emails, phone calls, voicemails and in-person meetings. You can have a complete record of your team’s interaction with a prospect that’s easy for anyone to access.”

Voice search. Consumers increasingly are making use of such AI assistants as Siri or Alexa to help them do internet searches using their voices. “Voice search is changing the way people find information because these queries are structured differently than when we type terms into a search engine,” Hoose says.

“Organizations of all types can benefit from optimizing their content to improve where they fall in a voice search.”

“To help propel your business going forward, it’s important to stay abreast of technology innovation,” Hoose says. “These technologies will help you expand your customer base, create more efficient in-house processes, and increase engagement from both customers and staff.”

About Chris Hoose 

Chris Hoose (www.choosenetworks.com) is the president of Choose Networks, an IT consulting firm for small businesses. Hoose started the company in 2001 to give large-scale solutions and support to businesses that can’t afford their own in-house IT department. He earned a Master of Information Systems Management from Friends University.