5 Reasons Why You Must Have Data Matching
There’s a high chance a customer interacts with more than one person from a company. Each interaction results in the creations of records in multiple information systems. Without realizing it, a lot of the information may be duplicated in this process.
Human errors may also result in capturing an incorrect customer profile. This includes spelling variations and simple misinterpretations. According to a recent study, a business initiative can lose up to 40% of its value simply because of poor quality data. Inaccurate data and duplicate records can cause annual losses that go into the trillions.
Embracing Data Matching – Benefits
Data matching is one of the simplest ways to minimize the damage caused by poor data. This involves identifying and matching records from different departments to eliminate duplicates and standardize data. The company can benefit in many ways while improving the day-to-day functioning and ROI.
1. Create Complete Customer Profiles
Depending on where and why a customer interacts with your brand, the information they provide about themselves may differ. For example, at a trade show, a person may give you his business email address. When signing up for a newsletter, the same person may give you a personal email address and cell number. At checkout on your website, the customer may give you his residential address as well. These records will typically be stored in different systems but with data matching, they can be consolidated to create a single customer profile that contains all his details.
2. Cut Down On Duplicate Marketing Costs
Your records contain duplicate data of a person, so is your call and email lists. Thus, the same person may be called by two different company representatives. The onset, this seems like only a minor inconvenience to the customer. However, there is a cost incurred in terms of time spent. The time your company representative spends contacting someone who has already been reached out is indeed a waste of time and resource. Similarly, maintaining duplicate or incomplete records can also increase your other marketing costs.
3. Protect Your Reputation
In the same example as above, before data matching the company records would show the individual as three different contacts. The cost of sending out emails is minimal but if a person has opened an email through one account, he is unlikely to open it on the second account as well. Instead, your email may be marked as spam. This can cause SEO issues and may even contribute to your domain being blacklisted. Similarly, if you were to call a person on multiple numbers, they may look at the call and your company as a ‘bothersome interruption’.
4. Data Enrichment
When companies collect data from customers most of the data is submitted by the customers themselves. This type of data collections leads to the risk of getting wrong information. This may be an intentional or unintentional mistake by the customer. Data matching enables companies to check data being filled in by customers and identifying misinformation. For example, if a person enters the wrong postal code when creating an account, data matching can match the address to postal records and flag the entry. It may also be used to make corrections in the data and thus enrich the data. Data matching also allows companies to enrich the data collected from customers with insights from other external resources.
5. Easier Compliance
The General Data Protection Regulation recently introduced in the EU requires companies to ask customers for their permission to use personal information such as email addresses before using it in marketing campaigns. When the data about a customer is inconsistent across records, it becomes difficult for the company to contact the customer in order to ask for this permission. In turn, this increases the company’s risk of incurring a penalty for non-compliance. With data matching, it becomes easier for businesses to find the details required to contact their customers and get the necessary permissions.
6. Automate Fraud Prevention
Data duplicity is something fraudsters often take advantage of. They know that it is difficult for businesses that maintain multiple records to trace discrepancies. Thus, they may enter forged receipts, financial statements etc. This can result in huge losses for businesses especially those in the field of healthcare and financial institutions. However, with data matching, records maintained by different departments can be connected and forged records can be identified a little more easily. Thus, it allows businesses to detect and prevent fraud.
Today, data matching should not be considered optional but as a necessity. It makes day to day functioning more efficient, maximizes ROI on marketing expenditures and gives you easy access to complete customer profiles for your marketing research. It also helps keep your records up to date and relevant. This is a system that can benefit companies of all sizes across different fields.