A Customer Relationship Management (CRM) system is only as effective as its foundational data. At the heart of any communication strategy is knowledge about your ideal and current customers. But what happens when your data is unreliable?

Consequences of Bad CRM data

You’ll lose out on good customer leads.

Having a good CRM database means knowing useful, timely, and relevant information about your customers. A strong fundamental understanding of your existing customers are clues to improve not just your product or service but your overall customer experience.

If you don’t understand what customers want or need from you, you may be losing out on providing what they expect from you.

You will annoy customers.

Customers who feel unheard will quickly move to make their purchases where they are. Gone are the days when marketers would put up billboards and radio ads with no amount of targeting. These days, customers will be hesitant to trust you if you can’t even remember their names.

Check out Bad CRM Data Part 1 – What to Avoid

It will mess up your sales pipeline.

When you do not know who your customers are or the clear historical signs that they are ready to convert, you will not know where to put your energy. Your sales teams will struggle to manage their time and end up wasting resources pursuing a lead that is likely not going to make a purchase.

It will frustrate your sales teams.

No matter how many capable salespeople you have on your team, with bad data, they will be going into battle without ammunition. Not only will they have no accurate picture of their prospective clients, but they will also lose visibility on their existing ones.

To nurture relationships with customers, companies need to understand where they are at any point in time. Loyalty is fickle, but positive customer experience makes all the difference.

Check out Bad CRM Data Part 2 – Reasons and Fixes

It will waste endless resources.

One of the worse things that can happen with bad CRM data is forecasts will not be accurate. Management will not be able to set reasonable targets that will lead them to burn out and low morale from their sales teams.

Customers want a seamless experience between channels. An effective CRM system will pass customer information between relevant departments while speaking with the same voice. Great CRM remembers their birthdays, contact details, and addresses for shipping. Bad CRM data will have them feel like you are a broken record that asks the same questions with every purchase.

Do not fall into the trap of bad data. Help your salespeople not only do their job but do it well. Make sure that your CRM system is the most effective it can be through integrating it with sales enablement partners like Hey DAN.

Hey DAN can do everything from meeting notes, data entry, clean up, and mining; Hey DAN can even do the follow-ups for you so that you never miss out on purchasing milestones. Let Hey DAN worry about the last mile of the meeting and give your salespeople space and time to shine to do what they do best – close deals.