Data cleansing – why is it important?

Data cleansing allows for improved decision making in business

Data cleansing is the process of changing data to make sure it is accurate and correct.

A recent article published by data experts Experian highlights the importance of maintaining data quality which helps businesses to make better choices and see significant cost savings.

Data sets can be manually checked to:

  • Remove duplicate records

  • Update or remove incorrect details, such as physical addresses or out of date emails

  • Remove or update files for people that have opted out of communications

  • Many errors in data quality occur because companies do not have the internal capacity, such as the time or staff resources required to process and maintain data.

The benefits

Ensuring your data is up-to-date saves you money, increases business efficiency and improves customer experience. Even though you might not directly see the impact dirty data might be having on your bottom line, there is no dispute that your business could perform better having clean data.

Here is a look at some of the key benefits of having a robust data cleansing process in place to support your business efforts:

Improved decision making

Research published by DMA highlighted the fact that B2B data ages at an alarming rate. Keeping cleansed data helps to maintain a level of quality and enables for more accurate analytics that inform the overall decision making process.

With clean data, you can build a better understanding of your audience and develop strategies that will help to improve the longer term success of the business.

Better results and increased revenue

Data cleansing reduces the waste associated with physical marketing tactics like direct mail. With a clean data list you can be sure that you are contacting people that have a genuine interest in your communications.

Delivering more targeted messages to relevant audiences will result in greater response rates for campaigns and therefore generate high-value business.

Greater compliance

With the emergence of GDPR, data security and consent is now more important than it ever was before. Regular cleansing of databases helps businesses to keep track on customer contact permissions and ensure people who have opted out of communications are not contacted by the organisation.

Keeping tidy data sets reduces the risk of any breaches in compliance.

Greater insights into customer and market behavior

Using clean data can provide you with valuable insight in relation to your customer base. You can improve on your current product or service offerings, marketing efforts or sales methods.

Cleansed data might even open your team’s eyes to new opportunities within your current market or an emerging market. This level of data insight could otherwise be missed, or be untrustworthy due it not being clean.

Implementing processes to support data cleansing across your business with provide you with the change to reorganise  and open up more opportunities to scale your business profits.

Clarity Software is a leading provider of MIS, CRM, estimating and quoting solutions for any business type and size. Over 4,000 users currently use Clarity end-to-end software solutions to improve business processes.

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