The founder of modern business management, Peter Drucker, observed that leaders rarely say “I.” The best leaders say “we.” It sounds like old news, but there’s a reason this is sage advice. Relationships are the driving force in business. Long-term success in business is dependent on what you know about your customers and suppliers.
Your organization’s sales and marketing areas spend their efforts acquiring prospect and customer contact data; but do you have a strategy in place to identify your most important relationships?
As more data is acquired and retained in your systems, monitoring and optimizing relationships becomes more challenging.
Without contact management using state-of-the-art technology tools and strategies, organizations are at a disadvantage when it comes to having the insights they need into the relationships they must nurture in order to grow the enterprise.
Among these problems:
- Obtaining meaningful data
- Understanding the data
- Maintaining and updating the data
- Being able to share insights across the organization
What can you do to ensure your organization has quality data, so you can grow these ultra-important customer relationships? Use these four practices:
- For example, if your organization collects customer information in-store or online, apply a data verification and validation process while the customer is still engaged and can make corrections. This ensures that your organization has the right information for each customer. You can also fill in critical data gaps to add to the data that the customer provides, enabling your team to segment your database and personalize messaging.
- Most organizations use acquired data, but they have little confidence in it, according to a 2015 Dun & Bradstreet report. The report found that acquired data produces better ROI. Verifying and cleansing the data before it’s used can fix the reliability problem, keep customer relationships strong, and increase your organization’s ROI.
- Behavioral data creates a better understanding of prospects. Examples include open and click-through rates in emails or website metrics. You may be getting a lot of visits to a webpage, but is it the right audience? Look past ‘vanity metrics’ like visitor numbers and determine the “who, what, why, when, where, and how” of your data for better understanding of your customers and prospects.
- Can you easily answer the question, “Who are my organization’s top ten customers?” Most companies don’t focus adequately on customers to prevent churn. A Forbes study said 47% of organizations didn’t know the lifetime value of a customer. Retention Science found that decreasing customer churn by just 5% led to 25-95% higher profits.
Knowing more about your customers creates better relationships and gives you the ability to develop action-oriented insights for better, faster business decisions. Learn more about contact management in this research briefing from Sirius Decisions.
Informatica and Dun & Bradstreet have formed a partnership to provide data cleansing and enrichment that can help you improve customer relationships. Contact us to learn more and see how your organization’s data measures up.