Newsletter - August 2008

The Benefits of Data Cleansing
By Steve Hamlet, Head of Sales

I would wager that most, if not all, businesses are built on data. I would also hazard a guess that most organisations, from SMEs to large multinationals do not really look after it as much as they would like to, thereby weakening that important business foundation. Something as simple as getting a customer’s name wrong could have massive future implications.

We have observed that on the whole, companies, particularly in the financial services sector, spend a lot of time and energy inputting the right information into their systems in the first place. As a result of the complexities of the industry, and practices of outsourcing services relating to the marketing and operations function of the business, the records start to become segmented. They are moved into several disparate systems with no logical way of bringing them back together. Even in a simple business model this could equate to multiple entries for a single client in a CRM system, and then that same process is repeated again within the marketing and finance departments. The result is that no-one really has a full understanding of the relationship with the client and certainly not how valuable they are (or could be).

Data cleansing is one way that issues like this can be addressed. Admittedly, it is an arduous task for large firms with millions of records and products, but one that can be made easier with technology and regular updating, rather than purging entire systems once in a blue moon. Outsourcing this function also means that internal resources are kept available for other activities and projects, and the cleansing is being undertaken by experts in this field.

There are many befits to data cleansing, these include:

• Maintaining a database with accurate and consistent records -- Accurate information equates to improved response rates that could result in increased revenue
• Addresses can be standardised and people who have moved or deceased can be easily identified, and then the appropriate action taken
• The amount of mail that may be undeliverable, returned or delayed is reduced
• Multiple entries are combined
• By merging data from several sources, you build a multi-dimensional view of your customer base allowing for more targeted communication.
• Correct information = quick and reliable results

There is a very good reason to regularly clean the data in an organisation: - keeping your customer information current and relevant ensures accurate and targeted communication. This in turn can increase revenue and decrease overheads. We often find that the cost of the data cleansing is more than met by the savings made in one or two marketing campaigns.

If you would like to speak to me in more detail regarding the data cleansing services that Matrix-Data Solutions can offer you please email info@matrix-data.co.uk.