Poor quality customer contact data could be costing UK organisations as much as 6% of their annual revenues, warns Royal Mail Group, following a survey of almost 300 marketing, data and analytics professionals by its specialist data business.
Comparative analysis of Royal Mail Data Services’ third annual survey suggests that certain problems have been getting worse since 2014, including duplicate data (up 22% in the last two years), incomplete data (up 13%) and out-of-date data (up 12%).
This year’s survey found that even though good quality customer contact data is thought to have the greatest positive impact on campaign response and conversion rates, 37% of businesses lack any formal processes for cleansing their data. Nearly one in five (19%) don’t validate customer contact data at the point of capture.
More than a third (38%) of marketing, data and analytics professionals say their efforts to overcome these challenges and improve the quality of customer contact data are thwarted by legacy IT systems.
With the customer churn rate at 20%, more than half of respondents (52%) cite customer acquisition as their biggest challenge.
The full report, The Six Per Cent Solution = How Better Customer Data Drives Marketing Performance and Business Growth, can be downloaded from: