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May 02, 2024

How a Small Business Should Manage Its Data



Every client you have as a small company probably generates a lot of data for you. This information should ideally guide processes, opportunities, and trends. But the quality of the reports you produce with this data depends on how well it is managed and how accurate it is.



Investing in data management procedures and equipment from a custom software company can improve data efficiency and save your company money and effort. We'll discuss the value of effective data management and provide advice on how to keep data clean and increase output.

Data management: what is it?

The process of gathering, protecting, and arranging data to improve productivity and efficiency is known as data management. Up-to-date, well-structured data facilitates improved decision-making for companies, which benefits both consumers and organizations.

The cost of an effective data management system need not be prohibitive. But with only a little effort and resource commitment, you can make your data an asset rather than a disorganized treasure mine of unreachable information.

Why is data management crucial?

Current, well-structured data is essential for the following reasons:

1. Aids in preventing expensive data quality problems

Reliable and well-structured data is essential as inaccurate data may be quite expensive.

Poor data quality costs companies, on average, around $13 million a year, according to Gartner, and many are completely oblivious to the real cost. What's maybe even more worrisome is that the consequences of faulty data, like acting on false insights, worsen with time if the issue remains unidentified.

Furthermore, according to Wakefield's 2023 State of Data Quality study, inadequate data quality resulted in almost twice as much data downtime during the last year, mostly due to a 166% rise in the duration required to address data quality concerns. According to survey participants, inaccurate data affected 31% of income.

2. Enhances conversion and lead generation

A useful tool for generating leads and qualifying sales leads is accurate data. However, it might be challenging to believe any sales analysis result if the data is flawed. When locating potential clients, sales teams, analysts, and managers are forced to depend on subjective standards due to inaccurate data.

According to a SnapLogic poll, 82% of decision-makers and data managers said they had to change initiatives because of poor data quality, and 77% of decision-makers and data managers stated they did not trust the data in their company. A well-maintained database may reduce uncertainty and provide valuable insights for marketing and sales tactics, resulting in more effective lead generation and frictionless client acquisition.

3. Promotes improved client interactions

It may be detrimental to your company when a consumer is irate about a product being delivered to the incorrect address or becomes impatient with having to repeatedly submit sensitive information.

Inadequate data-driven marketing techniques may result in inaccurate or inappropriate consumer messages, which can damage your connection with customers and be financially detrimental to your company. However, you may enhance results and manage customer connections more effectively with the support of precise, well-managed data.

How to keep your database clean and manage your data

A database full of problems might seem intimidating. To clean your current data and maintain the efficiency and organization of fresh data, you may, however, use tactics and best practices.

1. Ensure departmental alignment

All too often, an organization's departments' data is disconnected, which lowers efficiency and production. Make sure every department in your company is aware of the appropriate uses for certain data sets. This is one of the simplest methods to enhance data management.

For instance, assisting all data managers in comprehending the intended use of the information by the sales team may help to better inform the process from the outset. In addition to reducing unnecessary data, this cooperation and synergy promote general confidence in data reporting and analysis.

2. Pay attention to the generation of fresh data

While it may be tempting to go over current data and correct inaccuracies, doing so will simply cost you money and effort in the long run and offer no value to your company. It won't assist you in enhancing procedures going ahead and neglects to address the underlying causes of inaccurate and poorly maintained data.

Data enhancement is ultimately a lot simpler when new information is implemented via procedures that the whole organization adheres to. You may uncover strategies to more effectively enter data that is relevant to your sales and analytical objectives by looking into the underlying reasons for currently available faulty data.

3. Implement automated processes and CRM software.

To arrange client information in a searchable format, many companies employ content management systems or simple contact management software. However, a more reliable, affordable, and successful choice is customer relationship management, or CRM, software. CRM solutions provide business tools that improve many areas of your organization while tracking lead, prospect, and customer data.

To better nurture leads and support consumers, all of their functions—and more—ensure accurate, consolidated data that is accessible to every department.

Overcome faulty data

Inadequate, disorganized, and faulty data may seriously affect how your firm operates. However, you may boost productivity, earnings, and efficiency by managing your data with effective solutions from a data management company. Turning your data into an asset you can utilize to save time and money, chase sales possibilities, and enhance customer relations starts with getting departments on the same page, concentrating on fresh data production, and using the correct platform.



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