It costs less money to keep existing customers than to find new ones. As the economy continues to struggle, emphasis remains on customer retention and engagement. Unfortunately, for many organizations, poor data quality has led to decreased service levels and an inaccurate customer view.
According to a recent Experian QAS study, 83% of companies currently have customer loyalty program in place. However, more than half say their customer loyalty programs have been negatively affected by data quality issues in the last year.
These programs rely heavily on contact information. Not only is it needed for basic communication, such as sale and reward offers, but also for consumer intelligence. If customer information is not entered accurately, the success of these programs can be damaged.
According to the same study, the main reasons for inaccurate data are human error, insufficient budget, and a lack of relevant technology.
Having accurate contact data is really a must for organizations who want to have an effective customer loyalty strategy. Without it, organizations will be unable to communicate with or understand their customers.