80% of Business Contacts Still Remain Outside the CRM

80% of Business Contacts Still Remain Outside the CRM

The majority of CRM tools rely on users to input all of the data relating to their newly acquired leads. This manual process takes time and exposes your CRM to errors. In spite of major investment in CRM, organizations continue to miss sales opportunities and lose valued customers due to corrupt and missing data.

As Gartner puts it, bad data is the number one cause of CRM failure. In a recent study involving a number of Datahug customers, we found the following:

  • 50% of contacts in their CRMs had spoken to nobody in the past six months
  • 80% of active contacts at customer or prospect accounts had not been recorded in their CRM


CRM providers are coming up with novel new ways to address the ‘bad data’ problem.

The Cost to your sales?

So, what is the cost of this? A recent study by another firm found that a single incorrect CRM record could cost a company up to $100 in the long term, if that record is not cleansed or updated. Multiplying this across a relatively small organization of 100 staff, and the amount of CRM records that they each might be responsible for, and this figure quickly becomes vast.

The value of having all business relationships in one place is not just measured by the cost of data cleanse, but also by this potential gain to your pipeline.

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Combatting ‘Bad Data’

There are some nice new touches that Salesforce are adding such as the Data.com service. Data.com provides complete, high quality data, that’s updated in real-time in the cloud. Data.com can help your business by allowing you to easily maintain your client information on an ongoing basis, ensuring cleaner data and greater Salesforce adoption.

The problem with Data.com that Datahug solves is that when a user accesses a record, they may still have to do manual work. For example, on Data.com a button will alert the user if there is fresher or better information when searching for a contact. Users are presented with both new and old data for a contact. This involves a process called ‘Stare and Compare’, where they must choose which data is most accurate. This takes time and is open to error, as the user may not know which data is correct. A lead must be created in the first place for it to be advantageous.

Sales Intelligence Services

While delivering clear innovation that will contribute to CRM adoption and utilization, the Data.com intelligence service is an initial delivery, and lacks some of the automation and tools available from comparable sales intelligence services. It must still be worked through record by record, whereas a complimentary service like Datahug fills this hole and can import contact details and create leads for your business automatically and without user input. The information is there waiting to be unlocked! With Datahug, you could get those 80% of missing active contacts into your CRM automatically, and boost sales!

Datahug

Datahug helps companies understand ‘who knows who’ across their external network. It works by analyzing email and other communications traffic (not the content) and providing this much needed contact and relationship data in Salesforce.

  • Visibility of existing relationships enables you to engage decision-makers directly and shorten your sales cycle
  • Up-to-date relationship and activity data allows a true window into the sales pipeline
  • Access to your internal network helps you build better and more qualified lead lists

Clients who have embraced Datahug include CPL, BDO, Balderton Capital and Torch Partners.

On Wednesday, we’ll post about Customer Data Quality (CDQ), and Establishing a CDQ Management Program for your CRM.

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