Customer relations management (CRM) software has proven to be a tremendous resource for improving customer service and increasing sales productivity. However, as CRM applications become entrenched in more and more companies, many long-time users are facing the challenge of keeping CRM data fresh. This means both updating information and being able to distinguish between recently-entered and potentially-stale data. Since CRM software is only as good as the data it processes, keeping the data fresh is an essential part of maintaining the effectiveness of a CRM program.

This is a challenge faced by both large and small businesses. Large business CRM programs face the challenge of huge volumes of dated records accumulating on the system, with the origins of the latest updates becoming unclear. For small business CRM programs, the challenge is one of building up the database, which means both adding records and zeroing in on which pieces of information are the most important to productivity.

In either case, the following are six procedures which can help keep CRM data fresh:

1. Instituting update tracking. Whether it is done automatically or manually, updates to data should be accompanied by a date stamp and a user ID. This enhances user accountability, allows users to weigh the timeliness of any information they are viewing, and enables management to periodically screen for old data to be updated or purged.
2. Imposing service contact routines. Customer service personnel should be given a short list of key information questions to ask customers every time there is a contact. In this way, each contact becomes an opportunity to update records and keep information fresh.
3. Creating a sales coverage discipline. Similarly, each sales contact should be expected to yield specific data. This not only helps keep records up-to-date, but also helps verify reported contacts and allows management to track the regularity and thoroughness with which sales territories are being covered.
4. Brainstorming with sales staff about data insights. Managers should talk to sales staff about what information is most critical to getting in the door and securing a close. Together, the team can formulate goals and tactics for systematically adding this type of information to the CRM database. Over time, the focus of data accumulation should be on those fields which have the greatest impact on effectiveness.
5. Keeping the information of ex-clients. Information on former clients should not be automatically discarded, or even disregarded. This information is still useful for retention analysis, and as long as that former client is still around, they should be considered a prospect for future business.
6. Periodically streamlining the database. Especially when first installing CRM software, it is easy to fall in love with the idea of accumulating a vast storehouse of information. However, attempting to gather too much data can get in the way of obtaining and focusing on the most important facts. Over time, streamlining data fields and culling hopelessly out-of-date records will sharpen the focus of the CRM application.

Good, relevant data is the life blood of any CRM application. The goal is to keep the flow of that blood from getting clogged by out-of-date or irrelevant data. Bad data can lead to wasted efforts and botched contacts, and can also raise the company's security liability. Getting rid of bad data is a simple way to increase the value of good data.

Sources

Forbes.com

About the Author
Richard Barrington is a freelance writer and novelist who previously spent over twenty years as an investment industry executive.