To study CRM data in detail, we first need to have a handful of knowledge regarding the importance of data marketing and business strategies. It is one of the essential aspects of business methodology and projections.
However, many decision-makers are unaware of the impact data can have on making or breaking a venture. Bad data, which includes incorrect data assortment and low data maintenance, can adversely affect the various departments, including marketing, sales, and technology, etc.
Inaccurate data causes trillions of dollars of loss every year. Studies by IBM reveal US businesses nearly lose $3 trillion yearly to bad data. Disclaimer: This is not it! Some of the other bad data impacts are mentioned below:
The data quality rule 1-10-100 explains that the relative cost of fixing an error exponentially increases with time. It explains how the $1 trillion marks are reached by now.
Integration of this principle into CRM systems reveals that it takes $1 to resist bad data from entering the CRM system, $10 to correct the already existing problems, and $100 to fix the internal or customer failures caused by the situation.
Considering the facts, on average, 22-30% of lists decay annually.
Additionally, the Sales & Marketing Institute and Dun & Bradstreet Sales report highlight that 120 business addresses and 75 phone numbers are altered every half an hour, 20 CEOs change their jobs, and 30 new businesses are generated.
Ideal CRM Data Structure
To have a deep insight into the bad data and its effect, we first need to understand a CRM system's ideal structure. The perfect design involves a specific CRM data structure that is discussed below by portraying an example of HubSpot CRM.
1. The Lifecycle Stage
The lifecycle phase divides contact data information by their degree of sales-readiness. In HubSpot, CRM lifecycle stages are categorized as follows:
Subscriber – Person who signed up for updates from your organization
Lead – A person who has communicated interest in your product past a fundamental membership
Marketing and Sales Qualified Leads are customers approved by your company's marketing and sales crew.
Opportunity – An individual who is a member of an open arrangement with your organization
Customer – Someone who has purchased from your company or has closed a deal
Evangelist is a person who is kind enough to promote your products and refer you to other customers.
Other – Contacts who do not fall into any of the categories mentioned above
You can update the contact information manually and automatically according to your sales processes. It keeps your focus entirely on the contacts that are more likely to purchase.
2. Lead Status
Tracking contacts that are qualified by your sales team can offer valuable data to your CRM system. Some of the lead status options in HubSpot CRM are as follows:
Attempt to Contact
Just like the lifecycle stage, you can update the lead status. The lead status allows the new reps to start exactly where the old team member left by rationalizing communication among your sales representatives.
3. Custom Objects
Although the basic needs of sales reps are fulfilled with the available contact data options, yet there are times when teams require additional information to feed into the CRM data structure. It is where customs objects come in handy; this valuable method allows you to store all the pertinent data in your respective CRM.
Customs objects provide extreme flexibility for logging and utilizing valuable data by allowing the sales reps to categorize the data that does not matches the predefined contact alternatives.
CRM Data Structure
Classifying the data can help in determining the importance of data. The CRM data management involves different types of data which are as follows: