In the rapidly evolving landscape of customer relationship management (CRM), artificial intelligence (AI) is poised to revolutionise the way businesses interact with their customers.
Leading CRM platforms like Salesforce, Dynamics, Zoho, and HubSpot are already introducing groundbreaking AI features for autonomous chats, automatic campaign launches, product suggestions, and sentiment analysis.
Ensuring Customer Data is AI-Ready
However, for businesses to truly capitalise on the transformative potential of AI, a critical prerequisite must be addressed: ensuring their customer data is AI-ready.
The harsh reality is that many companies’ databases are plagued by outdated, incomplete, and inaccurate information.
A recent study by Harvard Business Review Analytic Services found that a staggering 47% of businesses cited poor data quality as one of the biggest obstacles to leveraging AI effectively.
This challenge is understandable, as the success of AI-powered tools hinges on the quality and reliability of the data they’re fed.
Fortunately, businesses have a window of opportunity to prepare their customer data for the AI revolution.
As AI capabilities continue to evolve and mature, taking proactive steps now can position companies to seamlessly integrate these cutting-edge technologies when they become more robust and reliable.
Appoint a Data Champion
Assigning a dedicated data administrator is a crucial first step.
This individual, who need not be a technical expert but should be a power user of the company’s CRM system, will be responsible for ensuring the completeness and accuracy of the data.
Like a financial accountant, their role is to identify and rectify data errors, implement controls to prevent future issues, and act as the go-to resource for all data-related matters.
Prioritise Ruthlessly
Next, businesses must prioritise the essential customer data fields required for effective sales and service operations.
By focusing on these need-to-have data points and configuring the CRM system to enforce their mandatory entry, companies can streamline their data collection processes and minimise the risk of nonsensical or irrelevant information creeping in.
Enrich Your Data Arsenal
Leveraging third-party data enrichment services can also be a game-changer.
According to a recent study by Forrester Research, companies that utilise data enrichment tools experience a 25% increase in data quality and a 20% improvement in customer engagement rates.
Services like Versium, Apollo.io, and People Data can automatically supplement existing customer records with additional publicly available information, filling in crucial gaps and enhancing the overall data integrity.
Divide and Conquer
Engaging employees in the data cleanup process is equally important.
By breaking down the data into manageable segments (e.g., by territory, region, salesperson, industry) and delegating responsibility for reviewing and updating specific subsets, businesses can distribute the workload and foster a sense of ownership over data quality.
A prime example of the transformative impact of AI-ready customer data can be found in the success story of a leading financial services firm.
After implementing a comprehensive data quality initiative, which included leveraging data enrichment tools and engaging employees in regular data audits, the company was able to deploy AI-powered lead scoring and personalised marketing campaigns.
The results were staggering: a 35% increase in lead conversion rates and a 20% reduction in customer acquisition costs.
Clean Data Equals Happy Sales and Marketing Teams
In the age of AI, customer data is the lifeblood of any business.
By taking proactive steps to ensure the accuracy, completeness, and relevance of their customer data, companies can position themselves to fully harness the power of AI and unlock new levels of operational efficiency, customer engagement, and revenue growth.
As the famous adage goes, “garbage in, garbage out” – by prioritising data quality, businesses can ensure that the outputs of their AI-powered tools are anything but garbage.
Join us at the Malaysian Marketing Conference and Festival 2024 and learn more about the latest methodologies and tools in ensuring your customer data is AI-Ready for the future!
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