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!