CRM Data Cleaning Strategies for Accurate Customer Records

1. Introduction

Every business will want to create a good relationship with their customers. This will mean you will collect lots of data about your customers such as name, email, phone number, company information, what they have purchased and communication history. Most will use a Customer Relationship Management system (CRM).

It will be easy for your staff to find customer details. You can also keep track of potential customers, manage your sales and gain customer insight. You need to ensure your data is clean.

Over time your CRM database will become messy. There could be duplicates of the same customer, the customers phone number/email could have changed and also there could be some misspellings or missing information.

This can become an issue when your employees are trying to contact a potential customer. When searching through their CRM they could come across 2-3 different records. Each record will have different information, one will have their old email address and one will have incomplete phone number. The employees will have to search through all of this to ensure they are using the correct details.

This can cause delays and affect the customer experience.

It is important to ensure that your data is clean within your CRM. Having a process will mean you can fix any incorrect information, remove duplicates and organise your customer data.

Below we have listed 8 tips to help keep your customer data clean.

2. What Is CRM Data Cleaning?

CRM data cleaning is the process of checking and ensuring the quality of the customer data in your CRM database. It is identifying incorrect information, removing duplicate entries, updating old data, correcting formatting and adding missing data. The purpose of data cleaning is to ensure that your customer data is accurate.

However, even though the data may relate to the same customer it can be difficult to know which customer profile to use as there may be different names and emails.

By cleaning your data you will be able to identify these entries and decide if the company should merge them.

You will also be verifying contact information, correcting spelling, updating company information and removing any unhelpful data. But you may not want to remove all the old information. Some data may still be useful for keeping track of a history, reporting and business processes. Be very careful when going through your data.

Data cleansing should be done regularly. Even if you clean your information today, tomorrow new errors may appear as employees add more information about customers.

Therefore businesses should have an easy process to keep their CRM database clean.

3. Why Accurate CRM Data Is Important

Using accurate data will help improve efficiency. If you know your data is accurate it reduces any interruption to completing tasks.

This is because:

Improved communication with customers

Customers will expect companies to communicate with them properly. If they have incorrect contact details it can cause issues.

If a sales rep sends an important update about a product to an incorrect email address then the customer will miss out and you’ll miss a chance to continue the conversation.

Keeping your customer information up to date will help avoid this.

Improved sales activities

The sales teams will be able to manage their leads more efficiently if they have accurate customer details.

Inaccurate data can cause confusion and multiple members of staff will contact the customer.

Having clean data will help your staff know what the customer has previously done and work as a team.

More accurate reporting

Managers will look at the reports in your CRM to see how your sales, customers and opportunities are performing.

Inaccurate data and duplicates can cause problems, for example you could have double counted a customer as there are multiple entries of that customer.

Having accurate records will help managers make decisions based on accurate data.

Improved customer experience

Customers will enjoy companies that really understand what they need and what they have discussed.

Full information on your customers will help staff provide better support without needing to ask customers for the same information.

Less wasted time

Staff should be using their time productively. They should not be wasting time finding the same information.

Having an organised database will help you find the information quickly. It will also decrease any manual tasks.

Overall having accurate data within your CRM will help improve teamwork between different teams and improve your relationship with customers.

4. Common Reasons for Incorrect Data

Understanding why the data will be incorrect.

Common reasons are:

• Incorrect data entry

• Incorrect Data.

• Typing mistakes, incorrect phone numbers and incomplete email addresses.

• This can happen if a high volume of data was being entered quickly.

• Duplicate data from various sources

• Often the data will come from various sources.

Customer information will be entered into various areas meaning duplicates will be added.

Outdated data

Over time customer information will change. The customer may be from a different company or their contact number has changed or new emails.

If the company hasn’t updated the information they will be using outdated data.

Inconsistent data

Sometimes data may be entered incorrectly.

Countries may be input as India and IND. Contact numbers may have different country codes.

This can cause issues with searches and reports.

No clear guidelines

Sometimes there will be no clear guideline on how to enter customer data, which means employees will enter profiles in any way which will lead to inconsistencies.

5. 8 Effective CRM Data Cleaning Strategies

Although it can feel overwhelming, you don’t have to clean all of your data at once.

By having a strategy in place here are some ways to clean your CRM data:

1. Audit Existing CRM Data

Before you begin any data cleaning you should assess what data you already have in your CRM. By doing a proper audit you can see how much data needs to be cleaned and what issues are the most common.

Look at key information including customer names, phone numbers, email addresses, company names and lead status.

See if there are any incomplete profiles, duplicates, outdated information and incorrect information.

For example, if you have 5,000 customer records you might find that some lack email information and others have duplicate company names.

Rather than randomly trying to clean up data, create a simple list of issues you found.

Such as:

• Duplicate customer information

• Incorrect email addresses

• Missing phone numbers

• Outdated company information

• Incorrect customer names

• Incomplete customer profiles

This will give you an idea of where to start. You should also consider what information is most important to you. If your sales team rely heavily on customer names, email addresses, company information and lead status then you should start by looking at this information.

Having a CRM audit will give your team clarity on what data they have and help you create a realistic data cleaning strategy.

2. Create Consistent Data Formats

Sometimes different staff members will enter the same information in different ways meaning it will be difficult to search for and organise.

For example, company names could be entered as:

• ABC Solutions Private Limited

• ABC Solutions Pvt. Ltd.

• ABC solutions pvt ltd

Whilst all may be the same company, it can cause confusion due to the different formats.

This can happen with phone numbers and addresses too.

To help with this you can set rules for how your staff should enter data into key fields.

For example, if you ensure that phone numbers are entered in the same way, customer names, dates and company names should also be entered in a consistent way.

Using drop down boxes can help. Instead of staff typing different variations of country names, you can have a list of approved options.

You can also create standard fields for customer types, lead sources and business locations.

This will help staff to enter information in a consistent way.

Most importantly it will help you to search for information, create reports and identify duplicates.

3. Identify and Merge Duplicate Customers

Duplicates could create issues for you.

Duplicated data usually occurs when more than one member of staff are entering the same customer or if you’re adding data to your CRM from different sources.

For example, a customer fills out a contact form on your website. A few days later they get in touch with your sales team via email.

If 2 staff members create a new profile for this customer they will have 2 copies of the customer in your CRM.

This can cause confusion for staff and cause unnecessary follow ups.

To combat this you can look at key information such as customer names, emails, phone numbers, company names and website domains.

You can use the duplicate identification features within your CRM or data cleaning tools to identify any possible duplicates.

However you should be cautious when merging duplicates. 2 people may have the same name but completely different contact details.

Once you have confirmed that they are the same person, choose the most complete profile to be the main one. Merge the useful data together whilst keeping key historical data.

You can look at both profiles to see which details are correct. If one has the right phone number and another has the latest email address.

This will help you to create an accurate customer profile.

4. Ensure Data Entering Is Accurate

Whilst it is important to clean existing data, it is also important to ensure that new data isn’t being entered incorrectly. If staff keep entering incorrect information your CRM will become messy again. Make sure that your employees are inputting accurate information.

They should also ensure that the email has been formatted correctly and that the necessary details of their phone number have been entered correctly. Finally, ensure that all mandatory fields have been completed.

You can put simple rules in place such as:

• Ensure all key fields are filled

• Ensure emails are in the correct format

• Use drop down boxes

• Avoid unnecessary duplicates

• Check for missing information on website forms

• Ensure key information is correct before saving

Using email validation will help you identify any invalid or risky emails.

However just because an email is in the correct format doesn’t mean it is active. Using the right email verification methods can help.

By ensuring key information is checked you can reduce the amount of incorrect data entering your CRM.

5. Update Old and Incomplete Data

Customer information will constantly change. They could change jobs, move to a new company, update their phone number and/or email address.

If you don’t update this information in your CRM it may cause issues for staff contacting them. Ensure that key customer information is regularly reviewed and updated if possible.

Start with active customers and potential leads. Check their names, phone numbers, email address, company information and job roles.

Where necessary you can contact customers to confirm their information.

When looking at incomplete data, you should focus on the information that will help your business.

For example, if your sales team rely on company names and lead status to assign customers to the correct representative ensure this information is included.

Sometimes you can use data enrichment tools to fill in some information. However always ensure the information is reliable before adding it to a key customer profile.

Having a regular process in place will help your business keep accurate and useful data.

6. Delete Unnecessary Information

Sometimes having a large CRM database can be detrimental to your customer management. Some companies will collect too much information and rarely use most of it. This can cause issues with maintaining the data.

Staff may be adding unnecessary information to the CRM such as irrelevant fields.

Look at the fields you have in your CRM and see what information you actually need.

Delete any unnecessary information or update any data that doesn’t have a purpose.

However be cautious when deleting old customer data. Some information may be needed for historical reporting, customer service or legal reasons. It may be better to archive or mark as inactive.

Also ensure that you are following your company’s data retention and privacy policies.

You want to ensure you are keeping useful data.

7. Create Simple Data Entry Guidelines for Staff

If staff aren’t entering data in the same way it can become difficult to manage your CRM.

Some staff may be adding full information about the customer, whilst others may only be adding the name and phone number. Some may be adding new profiles without checking if they already exist.

This can cause regular issues.

To avoid this you can create simple guidelines for your data entry.

Ensure your staff know what information they need to enter and how to format it.

For example:

• Search for existing customer

• Ensure names are in the correct format

• Ensure accurate customer information is added

• Avoid adding unnecessary fields

• Update profiles after key customer interactions

• Report incorrect information

• Training will also be important.

Not everyone will know how to keep the data in your CRM accurate. Ensure you explain the process and show them how incorrect information can cause issues with sales, reports and contacting customers.

Ensure that they have the correct permissions. Not everyone will need to be able to edit key CRM fields. Having a consistent process will help your business keep more consistent customer data.

8. Automate and Create Regular Reports

Manually cleaning data can be time consuming, especially when you have lots of customer data to manage. Staff may spend hours searching for duplicates, updating contact information and looking for missing information. Automating can help.

Many CRM’s have features to help you. Identify potential duplicates, ensure fields are filled in and organise reports.

You can set up alerts to remind you to check for out of date customer information.

If an important customer hasn’t been updated recently your CRM will tell you.

• You can generate regular reports.

• Some useful data to include is:

• Number of duplicate customers

• Number of incomplete profiles

• Incorrect email addresses

• Missing phone numbers

• Number of updates during the month

• Unresolved data issues

This will help managers to see if their data cleaning process is working.

However you should not completely automate the process.

Sometimes 2 profiles may look similar but are different customers. An automated tool may also suggest some information that needs verifying.

Ensure that any unsure duplicates are reviewed by staff. Using automation and regularly checking will help reduce the amount of work required to manage your CRM.

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6. How Often Should I Clean My Data?

Cleaning your CRM data should be a regular part of your business operations. While it may help solve current issues, it’s still possible for errors to creep in when staff members are inputting customer information.

How often you clean your data will depend on how large your database is, how many people will be using the CRM and how regularly your company adds new customer data.

For instance if you’re adding hundreds of new customer records a week, you’ll probably want to check your data more frequently than a small company who only have a few new customers a month.

You should also consider changing how often you clean your data if you change your CRM software or how you collect customer data.

Most importantly you should pick a regular time to clean your data that your team can stick to.

7. Mistakes to Avoid When Cleansing Your CRM Data.

There are many common mistakes made when trying to clean your CRM data.

Common mistakes include:

Cleaning All of Your Data

Trying to clean all of your data can take a long period of time. It’s best to clean the most crucial customer information.

Not Checking Merged Data

Always double check that the two customers with similar names are the correct one.

Not Backing up Your Data

Always back up any large changes you’re going to make to your CRM database.

Not Thinking About Why There Are Errors

You may have duplicate data but if you’re continually getting duplicates due to your employees it will not help. Try to think about why you’re getting duplicated errors and improve your data entry process.

Too Much Automation

Whilst using some automation, you will still need to make some decisions. Always double check any uncertain matches and important changes to your customers.

Not Keeping Your Data Clean

If any new information is added by your employees then your database can become inaccurate again. By having regular reviews and clear guidelines this will help avoid any duplicated issues.

By avoiding these mistakes you will have a more reliable CRM database.

8. When to Use Outsourced Data Cleansing

As your business grows, managing your customer data can become time consuming.

Initially as you only have a few people updating your CRM system you will not have any issues. But once you start receiving large amounts of customer data this can cause problems.

Your staff may waste hours removing duplicate data, keeping contact details up to date and ensuring the data is correct. Using an outsourced data cleansing service will be a great option. By using an outsourcing service you will be using a third party to deal with some of your data.

Depending on what they agree to do for you, they can help by:

• Removing duplicate customer data.

• Updating contact details.

• Ensuring any spelling and formatting issues have been rectified.

• Keeping your key customer details accurate.

• Keeping your CRM databases in order.

• Updating your spreadsheets and customer data.

• Ensuring your data has been entered consistently.

For example if you have an online business that has started to grow and your company has lots of customer data. Your staff may be very busy dealing with orders, customer queries, updating products etc.

They may not have time to go through all their data. Using an outsourced data entry and cleansing service will help to keep your data in order and remove any repeat work.

However it is important to ensure you have the right provider. You need to discuss with them:

• Access to your data.

• Confidentiality.

• Security.

• Back up.

• Approvals.

What they can do without requiring approvals.

A good outsourcing solution will have clear roles and regular communication.

This will help you manage your customer data whilst your staff can concentrate on other key areas.

9. Final Thoughts

Keeping your data up to date is very important. Using a CRM system will help your employees effectively manage your customer relationships, improve your sales process and understand your customers needs. You can only get a good result out of your CRM if your data is kept up to date.

Getting your data cleaned up can help eliminate problems such as:

• Duplicate Data

• Incorrect Contact Information

• Incomplete Data

• Inconsistent Data

To help keep your data clean we recommend performing a full audit of your database. You can set guidelines for your data and ensure there are no duplicates, your old information is updated and key pieces of information about your customers are reviewed.

Automation tools can also help reduce repetitive tasks.As your customers data will always be changing you want to ensure that you have a consistent process to keep everything up to date. Having clean data means that your employees won’t have to waste time looking for the right data and will spend more time creating great relationships with your customers.

A well maintained database can help you use it as an asset within your business. This will improve communications, streamline processes and give you confidence when making decisions.