CRM Data Hygiene - Is Your CRM Data Clean & Up-To-Date?
Customer Relationship Management (CRM) systems are everywhere – over 91% of companies with 10+ employees use one!
But, a CRM is only as good as the data it holds. Why so?
Because the CRM contains data related to your leads and customers, on which your sales and marketing teams are highly dependent.
If this data is incorrect or outdated, how are your teams going to engage with them and convert them? How will they be able to set realistic targets? Or measure the actual performance?
Most of their efforts will go in vain.
Hence, if you want your CRM to be a goldmine of customer insights and not a graveyard filled with outdated information, you must keep a check on your CRM data hygiene and take action to maintain it.
But, a CRM is only as good as the data it holds. Why so?
Because the CRM contains data related to your leads and customers, on which your sales and marketing teams are highly dependent.
If this data is incorrect or outdated, how are your teams going to engage with them and convert them? How will they be able to set realistic targets? Or measure the actual performance?
Most of their efforts will go in vain.
Hence, if you want your CRM to be a goldmine of customer insights and not a graveyard filled with outdated information, you must keep a check on your CRM data hygiene and take action to maintain it.
Table of Contents:
What is CRM Data Hygiene?
CRM system is the system on which your business relies– a place to keep track of leads, customers, and their details.
CRM data hygiene is all about keeping the CRM records clean and organized. It means making sure the data about your customers and potential customers is accurate and up-to-date.
Why is this important?
Clean CRM data helps your sales and marketing teams target the right people with the right message. It also helps you build stronger relationships with your customers by allowing you to personalize your interactions with them.
CRM data hygiene is all about keeping the CRM records clean and organized. It means making sure the data about your customers and potential customers is accurate and up-to-date.
Why is this important?
Clean CRM data helps your sales and marketing teams target the right people with the right message. It also helps you build stronger relationships with your customers by allowing you to personalize your interactions with them.
What Degrades Your CRM Data?
Nobody wants to store bad data, but with time even the best of data degrades. Here’s what might be degrading your CRM data:
- Accepting unverified data: The first and most important reason behind bad CRM data is not verifying the data while capturing it into CRM. There are lots of spammers and abusers who intentionally provide fake and disposable data to enter your system. Simple email verification or phone number verification while signing up a new user can save you a lot of time and keep your database healthy.
- People moving on: People change jobs, get new phone numbers, or move to new addresses. If you don't update your CRM regularly, you might reach out to someone at their old company or send emails that bounce back because those accounts are no longer in use.
- Simple typos: Even the most careful person can make mistakes when entering data. A typo in a phone number or email address can render a contact record useless.
- Outdated information: Just like people, companies might also change their names, products, or even ownership. If your CRM information isn't updated, you might target the wrong decision-makers or miss out on new opportunities.
- Inactive contacts: Some people in your CRM might no longer be interested in your products or services. Keeping these inactive contacts clutters your system, makes it harder to find good leads, and reaching out to them only adds up to cost without giving any results.
- Duplicate entries: Sometimes the same person can end up with multiple entries in your CRM. This can happen if they fill out a form on your website twice or if you import data from multiple sources. Duplicate entries waste storage space and can be confusing for your sales and marketing teams.
Indications of Poor CRM Data Hygiene
Here are some warning signs that your CRM data hygiene needs attention:
- Wasted outreach: Your sales team is constantly bouncing emails or reaching out to the wrong numbers. This indicates outdated and bad data quality of your CRM.
- Sales forecasting struggles: Your sales are consistently off target. Inaccurate data on deals, pipelines, and customer buying power can lead to unrealistic predictions.
- Low customer engagement: Marketing campaigns have low open rates and click-through rates. Sending irrelevant promotions to uninterested contacts shows a disconnect between your CRM data and customer reality.
- Team frustration: Your sales and marketing teams dread using the CRM. Data inconsistency makes it difficult to find the information they need, leading to wasted time and frustration.
- Reporting headaches: Generating reports takes a long time and requires extensive data manipulation. Bad data from CRM makes it challenging to get clear and actionable insights.
Data Hygiene Best Practices To Maintain CRM Data Quality
1. Validation checks before data submission
Before data gets submitted into your CRM, implement validation checks to catch errors at the source. Here's how:
- Email Validation: Use built-in CRM features or third-party tools like Clearout to verify email addresses in real-time. This ensures that valid leads with correct data are entering your CRM, emails bounce less, and reach the right inboxes.
- Phone Number Check: Use a standardized format for phone numbers (e.g., +1 for US numbers) or phone validation tools to confirm the submitted phone number. This simplifies communication and avoids confusion.
- Picklist Options: Create picklist menus for frequently entered data like job titles or industries. This limits typos and ensures consistency.
- Data Range Checks: Set limits for numerical data (e.g., employee count between 1-20, zip code should be 5 digits, etc). This prevents nonsensical entries.
All of these validations while capturing data leave less room for errors and ensure a healthy CRM from the start.
2. Regular CRM data quality check & cleaning process
To maintain the CRM data quality you first need to know where things are lagging.
Regularly assess your CRM data and schedule time to correct any inaccuracies. CRM data cleaning should be a standard process for your company to maintain clean data.
During the review, take note of any frequently empty data input fields.
This could indicate that a field is unnecessary and should be removed to prevent the entry of incorrect data. If the field information is necessary it can be made mandatory or should be enriched later using 3rd party data enrichment tools.
Also, examine forms where contacts enter their data. Look out for unused fields, unclear field names, or prompts. If possible, eliminate unnecessary fields.
The more information you request, the less likely it is that a customer will complete the form.
Also, having more data entry fields increases the potential for inaccurate data to enter your CRM.
Regularly assess your CRM data and schedule time to correct any inaccuracies. CRM data cleaning should be a standard process for your company to maintain clean data.
During the review, take note of any frequently empty data input fields.
This could indicate that a field is unnecessary and should be removed to prevent the entry of incorrect data. If the field information is necessary it can be made mandatory or should be enriched later using 3rd party data enrichment tools.
Also, examine forms where contacts enter their data. Look out for unused fields, unclear field names, or prompts. If possible, eliminate unnecessary fields.
The more information you request, the less likely it is that a customer will complete the form.
Also, having more data entry fields increases the potential for inaccurate data to enter your CRM.
3. Automate data updation in CRM
You must keep your CRM data up-to-date to fight the data decay issue, and managing such a huge database manually would not be possible.
The easiest way to ensure the accuracy of your CRM data is by automating contact data updates. For this to work, your CRM needs to be integrated with other apps you use. For example, you can try to:
The easiest way to ensure the accuracy of your CRM data is by automating contact data updates. For this to work, your CRM needs to be integrated with other apps you use. For example, you can try to:
- Sync with External Sources: Connect your CRM to marketing automation platforms or social media accounts. This automatically updates contact information based on new interactions.
- Integrate with Data Enrichment Tools: These tools can automatically append valuable details to existing contacts, such as company size or social media profiles, enriching your customer data.
There are tools like Zapier, Flow Digital, Mixmax, and more that make it easy to connect with various external sources and automate the process of updating CRM data super easy.
4. Avoid duplicate CRM data entries
Duplicate entries can cause lead counts to be inflated and can distort campaign results.
This repetition might happen for different reasons, such as a lack of communication among team members, different team members interacting with the same client, errors during data import processes, etc.
To avoid this issue, train your team on effective data entry procedures to minimize the creation of duplicate records
Also, consider using tools and CRMs with built-in features to identify and merge duplicate records. These tools typically match criteria such as email addresses or phone numbers to streamline the deduplication process.
This repetition might happen for different reasons, such as a lack of communication among team members, different team members interacting with the same client, errors during data import processes, etc.
To avoid this issue, train your team on effective data entry procedures to minimize the creation of duplicate records
Also, consider using tools and CRMs with built-in features to identify and merge duplicate records. These tools typically match criteria such as email addresses or phone numbers to streamline the deduplication process.
5. Standard data management rules
Poor CRM data hygiene can stem from something as simple as some people putting a period after “Ms.” and others choosing not to—or some people abbreviating street names (like “Ave” and “St”) and others spelling them out.
Establish which data fields your team is responsible for entering data into in the CRM, then set rules for each data field.
Establish which data fields your team is responsible for entering data into in the CRM, then set rules for each data field.
- Data Dictionary: Create a document defining data formats, acceptable values, and best practices for entering information into your CRM. It acts as a central reference point for your team, ensuring everyone uses the same terminology and format when entering data.
- Permissions: Assign roles and permissions to control who can add, edit, and delete data within the CRM. This helps prevent unauthorized changes and ensures data integrity.
- Ownership: Assign data ownership for specific data sets within the CRM. This creates accountability for data accuracy and ensures that someone is responsible for keeping specific data fields up-to-date.
Documenting and following these protocols can prevent unwanted confusion and mishandling of CRM data.
6. Establish transparency and eliminate data silos
Many companies keep CRM data separate, especially as the company grows and different departments are established.
Each department sets its own CRM and data management standards, which make contact data off-limits to other departments. Having to search for or request access to data in separate CRM also slows down processes and reduces productivity.
This hinders the smooth flow of data, making it difficult for everyone to have a complete view.
All teams should use the same CRM system with consistent data management standards to avoid this. This ensures that everyone has access to the same information. If getting everyone to use the same CRM is not possible, integration tools can be used to bridge the gap.
Each department sets its own CRM and data management standards, which make contact data off-limits to other departments. Having to search for or request access to data in separate CRM also slows down processes and reduces productivity.
This hinders the smooth flow of data, making it difficult for everyone to have a complete view.
All teams should use the same CRM system with consistent data management standards to avoid this. This ensures that everyone has access to the same information. If getting everyone to use the same CRM is not possible, integration tools can be used to bridge the gap.
7. Adopting the right tools for maintaining CRM data
CRM data is one of the most crucial aspects of running a business. Any negligence in the data quality can cost a business a lot and lead to missed opportunities as well.
So, make sure you are investing in the right CRM data management & cleaning tools.
Especially when it comes to the CRM data cleansing tools make sure they are giving you the accurate and up-to-date information that you can use with confidence and not another headache of dealing with bad data.
So, make sure you are investing in the right CRM data management & cleaning tools.
Especially when it comes to the CRM data cleansing tools make sure they are giving you the accurate and up-to-date information that you can use with confidence and not another headache of dealing with bad data.
Tools for CRM Data Hygiene
Now let’s have a quick look at some of the CRM data hygiene tools that can help you in the process.
1. CRMs with built-in data hygiene features
Many Customer Relationship Management (CRM) platforms recognize the importance of data hygiene and offer built-in features to help you maintain clean and accurate customer information.
These features are like having a personal data assistant within your CRM, saving you time and effort in keeping your data sparkling clean. These usually include- Data deduplication, basic validation, data standardization, analytics, reports, and integrations to make your data easily interact with other platforms.
Some CRMs offering good data quality management features include HubSpot CRM, Zoho CRM, and Salesforce.
These features are like having a personal data assistant within your CRM, saving you time and effort in keeping your data sparkling clean. These usually include- Data deduplication, basic validation, data standardization, analytics, reports, and integrations to make your data easily interact with other platforms.
Some CRMs offering good data quality management features include HubSpot CRM, Zoho CRM, and Salesforce.
2. CRM data cleansing tools
While the CRMs with built-in features offer a foundation for data hygiene, for complex CRM data cleaning needs, you need to rely on CRM data cleansing tools. These external tools can offer deeper cleaning functionalities and data enrichment capabilities.
Here’s a detailed look into some of the best CRM data cleansing tools:
Here’s a detailed look into some of the best CRM data cleansing tools:
Clearout takes data cleansing a step further by offering both cleaning and enrichment functionalities. It runs multiple checks in real time and offers a data accuracy rate of over 99%. Here's what sets them apart according to their website:
- Data Cleaning: Clearout identifies and eliminates duplicates, bad email addresses, disposable emails, role-based accounts, catchalls, and more for a clean and organized CRM.
- Data Enrichment: The prospecting features help you find high-intent leads with their contact details and valuable insights directly through LinkedIn. It also helps you re-enrich your existing lead lists with updated information.
- Real-Time Email Verification: Ensures the accuracy of your data being entered in your CRM at the point of capture, contributing to good CRM data hygiene from the start.
- API & Integrations: The powerful API and integrations offered make it super easy to connect Clearout with your CRM, sales tools, lead capture forms, signup pages, etc.
- Team Account: Work with teams and assign roles for better data handling and verification.
Tye boasts a user-friendly interface that makes data cleansing a breeze. According to their website, Tye can help you save hours of your time on data cleaning tasks compared to manual methods. Here are its key features:
- Duplicate Detection and Merging: Find and eliminate duplicate entries that clog up your CRM..
- Error Correction: Identify and fix typos, inconsistencies, and missing information in your data.
- Matching and Standardization: Ensure consistent data formatting across your CRM for easy searching and analysis.
OpenRefine, formerly known as Google Refine, is a free and open-source tool perfect for power users who crave more control over the data cleaning process. Here are some of its strengths:
- Faceted Browsing: Easily explore and analyze your data through interactive filtering and visualization tools.
- Clustering: Identify patterns and similarities within your data to uncover hidden insights.
- Custom Transformations: Craft custom data manipulation scripts to tailor the cleaning process to your specific needs.
Maintain Your CRM Data Quality With Clearout!
Following the right CRM data hygiene practices from the start is very important. Or it will lead to unreliable information, poor campaign performance, increased efforts, and wasted resources.
Clearout surely stands as one of the best tools that can help you safeguard your CRM data quality from the very start.
Whether it is about running validation checks, regularly cleaning your CRM, taking care of duplicates, or finding updated information, you can rely on Clearout’s results and run your campaigns with confidence.
Clearout surely stands as one of the best tools that can help you safeguard your CRM data quality from the very start.
Whether it is about running validation checks, regularly cleaning your CRM, taking care of duplicates, or finding updated information, you can rely on Clearout’s results and run your campaigns with confidence.
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