According to a recent dun&bradstreet report, The Past, Present and Future of Data, one in five businesses admit they have lost a customer due to incomplete or inaccurate data.
And this was identified as being a challenge across businesses of all sizes: 25% of businesses with over 500 employees, 32% of businesses with between 250 and 500 employees and 16% of smaller businesses (0 -10 employees) having lost customers as a result of using poor quality data.
That’s pretty damning stuff. Particularly when you consider that it costs anything from five to 25 times more to acquire a new customer than to retain one. Even at the lower end of that scale, very few businesses can afford to be losing customers, revenue and sacrificing hard won LTV at that rate.
Data has undoubtedly become an integral part of how businesses function today, but it is essential to ensure that this data is the RIGHT data.
58% of businesses worry about the accuracy and completeness of their data [dun&bradstreet – The Past, Present and Future of Data 2019]
Continuing to market to the previous address of individuals who have relocated will waste precious marketing budget (which could be better allocated elsewhere) and risk losing contact with customers who may become lapsed as a result. The current occupiers of that property will also be far less likely to engage with a brand that is inundating them with a previous-tenant’s mail.
Similarly, failing to screen for deceased contacts in your database will also waste marketing spend – and more importantly will have the potential to cause distress to the families of those still being contacted. Why risk damaging your brand’s reputation? Furthermore, why risk inviting penalties from the ICO for non-compliance to GDPR Article 5?
In these competitive times, with consumers that are more demanding and less loyal than ever, losing customers due to inaccurate data is pretty poor business and, in reality, a very easily avoided reason to lose a customer!
By Scott Logie, MD, Insight at REaD Group
We are living in the age of machines. What used to be thought of as science fiction is now simply taken as fact. Electric cars, payment by watch and tv on the go are all being used by everyone every day. In addition, thought controlled bionic arms, space travel and waste blasting toilets without the need for a sewer are all being trialled right now. Surely teleportation isn’t too far away and we can all go Back to the Future.
Technology on the rise
In the world that we inhabit – the world of marketing and building customer engagement – machines are already common place. Machine learning models, chatbots and AR/VR based content are being used, and are being well received, by the end customer. In fact, there are areas, such as gamification, where consumer demand is greater than the usage at present. As a Fitbit obsessive, if someone ties my daily step count with rewards in exchange for data then I would sign up immediately.
One of the many debates this creates is around whether it is necessary to inform the end customer that they are engaging with a machine. From a personal point of view, I’m not sure this is needed. For me, the bigger issue is ensuring that the right combination of person and machine is in place.
Research shows, for example, that people really want to talk to people when the request is complex or where there is a need for a complaint to be made. Making sure that the conversation can be identified as moving in a particular direction and the right intervention is in place feels more vital than the end individual knowing if the operative is real or not.
74% of consumers admit they would sooner complain about a product or service to a human rather than a chatbot [DMA Customer Engagement 2019 – Facing the future: how consumers and brands view new technology]
Rage against the machine!
Certain AI platforms, such as the financial assistant, Plum, are now being programmed to deal with abusive messages such as those containing swearing, rudeness and sexism. This has seen a positive impact from a customer perspective, as witty and humorous responses from the AI have often helped to defuse a situation and reassure the consumer that they are dealing with an intelligent entity.
And in reality, it isn’t too long until we allow our own machines, home assistants or phones or even our fridge, to engage with the brands machines and make decisions for us making the identification moot.
Data is vital
Of course, at the end of the day, there are some constants that always need to be in place. The first is identifying who the customer or prospect is and being confident that you have the right person and the second is having enough data of interest to make the interaction relevant. In amongst all the chat about AI, VR, AR and machine learning it is vital to remember that it’s the data that fuels the success – or otherwise – of these technologies.
At REaD Group we often talk about giving brands the right to be personal. That is never more real than when there is a combination of machine and person doing the engagement. Not having the data infrastructure, or indeed the base data, in place means that the discussion about machine v person is irrelevant. Ultimately, having a clean, up to date, enriched dataset is vital to the success of any AI, chatbot or other technology-based pilot.