7 Reasons Why Clean Data is the Key to Improved Customer Experience

Clean Data

With such a prevalence of dirty data, it is no surprise that customer satisfaction remains low. But it is not unsalvageable. By cleaning the dirty data and putting it to suitable use (which cleaning enables), improving customer experience is possible. Contrariwise, serving customers well is nigh impossible without clean data.

Plenty of troubles bedevil a business. Poor targeting and personalization, lost leads, wasted productivity, low customer satisfaction, and high customer churn are some blights. The primary culprit of all this is dirty data. Yet dirty data remains pervasive. It is believed that nearly all customer data is dirty in one way or another. This is partly because data decays rapidly and partly because cleansing data is tedious.

With such a prevalence of dirty data, it is no surprise that customer satisfaction remains low. But it is not unsalvageable. By cleaning the dirty data and putting it to suitable use (which cleaning enables), improving customer experience is possible. Contrariwise, serving customers well is nigh impossible without clean data.

7 reasons why clean data is key to enhanced customer experience

Good customer experience is a business imperative as well as a strategic advantage. It plays a pivotal role in customer retention. Repeated studies have shown that customer retention is key (one could even say the key) to growth and profitability—indeed it has been called the “holy grail” of these. Customer retention is also cheaper and provides better long-term value than customer acquisition. All this rests on good customer experience, something that nearly 90 percent say is as important as the products themselves. And for four out of ten, two bad experiences is the breaking point: they’d stop buying from a brand if that is exceeded. 

Clean data is the backbone of all this. Here are some reasons clean data improves customer experience.

Personalized customer engagement

We live in the age of personalization. Customers crave a personalized experience and have an almost unreachable bar. A generic communication is likely to receive a lukewarm response, if at all. The once transactional, one-size-fits-all experience is dead and buried. Tailored, relevant, and consistent engagement are the standard. Customers want to be treated as a person, not simply a case number.

This would require listening to customers at every touchpoint and moving toward knowledge from mere recognition. This is impossible without clean and accurate customer data.

Clean data enables personalized customer engagement by providing accurate and up-to-date information about individual customers. It helps you predict behavior and proactively engage with customers at the right time, providing them with what they want and when they want it.

Improved segmentation and targeting

Segmenting customers based on their, say, geographic, demographic, or psychographic information is essential if you want to connect with them effectively. Clean data helps you identify and segment your customer base.

With granular customer segments and accurate customer profiles, you can tweak and tune your marketing strategies to meet specific needs and preferences. This targeted approach will ensure higher response rates and customer satisfaction. This will also likely lead to positive brand perception, as customers feel that they are not unnecessarily targeted and bombarded with irrelevant marketing materials.

Efficient customer support

Customers don’t like to be treated merely as a number or a ticket. But much of customer support still revolves around the cases and not the customer. This more often than not leaves customers frustrated, their issues unresolved, or needing to go through another round—possibly all over again. Inefficient and poor customer support is problematic not just for customers but also for support agents. 

Clean customer data will enable customer service agents to correctly identify customers and sort their purchase history and previous conversations. Resolving a customer issue in a single conversation is thus easier—a key factor that constitutes a good customer experience. If not that, then at least it would allow support agents to provide consistent answers across multiple channels and make the conversations seem seamless.

Quick complaint resolution

Responsiveness and quick resolution of issues are pivotal in excellent customer experience, and they correlate with customer satisfaction and loyalty. This is because time has become an ever more scarce resource. Valuing your customers’ time is one of the most important things you can do.

Addressing customer issues promptly is thus paramount. For you to provide answers to customers’ questions, you require clean and up-to-date data. And this includes records of customers’ account activity, purchase history, and past complaints and feedback among others. 

Clean data minimizes the need for back-and-forth communication to verify information. It also allows you to follow up with the customer to enquire if their issues have been resolved. It may also enable you, to a degree, to anticipate potential issues and proactively engage with customers.

Streamlined billing and invoicing processes

Billing errors can be intensely annoying, especially if not resolved quickly. If not addressed properly and promptly, it could lead to reputational damage, loss of trust, legal issues, and all-round poor customer experience. Clean data helps ensure that billing and invoice issues are resolved efficiently and effectively. It also minimizes the issues from cropping up in the first place.

Clean data ensures that customer details are accurate, complete, and free of inconsistencies. This means that billing details, such as names and addresses are accurate, reducing the chance of invoicing errors. And should a mistake occur, clean data will allow you to quickly compare the customer’s statement with your records. This will enable you to identify the discrepancy, correct the error, and communicate to the customer.

With clean data, automated payment systems are also more reliable. Failures and disputes are reduced. A frictionless payment and billing process fosters trust in financial transactions and enhances customer experience.

Compliance with privacy laws and protection of customer data

Clean data enables you to comply with regulations such as the California Consumer Privacy Act and the EU’s GDPR. During the process of data cleaning, personally identifiable information and other sensitive information can be either removed or anonymized. 

Clean data also makes it easy to efficiently respond to data subject requests, such as access requests, rectification, or erasure of their personal information. It enables you to honor customers’ rights and at the same time stay within the bounds of privacy laws.

Builds trust and credibility

Trusted companies outperform their peers by a factor of about four. This is hardly a surprise. What may come as a surprise, though, is that customers are more likely to buy again from a brand they trust. At the other end of the pole, customers are disinclined to deal with brands they do not trust; and inclined to disentangle their association if trust is breached. 

Trust is central to a positive customer experience. But to earn their trust you must provide a good experience, safeguard their data, protect their privacy, and be transparent. Clean data is the bedrock of all this. 

Clean data makes it possible to understand customers’ needs and preferences, use their data in ways that enhance trust, and connect with them at a more intimate level. This will instill trust in customers and build the credibility of your brand.

Clean data: The foundation of excellent customer experience and evergreen business

Good customer experience and clean data go hand in hand. Without clean data, the question of improving customer experience is, as it were, out of the question. Clean data enables you to establish a healthy, symbiotic relationship with customers. With personalized engagement and attending to their needs promptly, customers feel they are valued and treated as a person, not merely a detached consumer to be sold products to.

With all the upsides of clean data, however, comes the task of data cleaning, a task whose challenges match the benefits it brings. It requires expertise and special tools and is tedious and time-consuming. And unless done well, the reward can be minuscule. Happily, there are companies that provide data cleaning services that allow you to tap the benefits of clean data without yourselves undergoing the laborious task. They possess the requisite expertise and equipment to provide bespoke data collection and cleaning services.

Cleaning data may be costly, but not cleaning can be costlier. You cannot afford to overlook it.


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