Poor customer data costing organisations 6% of annual revenue
Poor-quality customer data could be costing organisations as much as 6% of annual revenues, according to the third annual study by Royal Mail Data Services.
The report found that despite this recognition, good quality customer contact data was cited as having the greatest positive impact on campaign response and conversion rates for the second year running.
Data issues have risen year on year – since 2014, duplicate data has increased 22%, while incomplete and out-of-date data are up 13% and 12% respectively.
But perhaps these issues should not come as a surprise: the survey also revealed that 37% of businesses have no formal process in place for cleansing data, with 19% not validating data at the point of capture.
While average annual churn remained the same at 20%, customer acquisition is the top of the agenda with over half (52%) of marketers identifying it as their biggest challenge.
"The lack of consensus within organisations about how to approach the data problem is holding them back," said Jim Conning, MD, Royal Mail Data Services.
“Breaking down silos and ensuring that marketing, data and IT work together to tackle the data-quality challenge should be top of the agenda for any business.”