A good customer relationship management (CRM) software contains a variety of features to gather and properly manage consumer data & information, known commonly as CRM data management. This data includes personal preferences, purchasing behavior, contact information, and other necessary information that helps any company to facilitate its customers effectively.

CRMs gather other types of data as well. It does not pertain directly to customer needs, but your online presence and services. These can range from website clicks to detailed demographics of how a visitor connects with your site, a remarkable insight that helps convert potential leads into genuine customers.

CRM and Data management

Data, in all of its forms, provides great strategical information to every B2C, direct-revenue focused business. These companies focus on the form of data known as Customer Data Management (CDM). Let’s discuss the use of CRM data management for handling customers.

What is Customer Data Management (CDM)?

Customer Data Management is a range of methods that businesses use to store and manage customer information gathered via various data collection methods.

CDM uses the data it gathers to produce feedback, one of the chief requirements for a successful business. Better organization and data management ensures immediate resolution of customer issues and results in higher customer satisfaction and retention rates.

What Makes Data Management Important?

Customer Relationship Management (CRM) applications are easily over-populated with excessive or obsolete data. Outdated Email addresses and cell phone numbers are just a few examples.

This excess of information not only weighs down the central database but can also disrupt other functionalities. Calls can be made to wrong numbers or emails can be sent to invalid addresses, resulting in a poor customer support and response ratio.

Organizations are now more inclined towards a CRM approach that emphasizes customer experience through better engagement.

Your company’s CRM, then, processes and stores large amounts of information. This creates an improved understanding of an individual’s relationship and interactions with the organization and overall better customer interaction.

Data management is not just important, it’s one of the key functions to look for in a CRM and needs regular attention. Proper CRM data management becomes an absolute necessity for any business to achieve greater heights in customer service and satisfaction.

Here are four tips to develop adequate practices to improve your CRM data processing.

Related: 4 Easy Solutions to Common CRM Problems

1.   Automate Data Entry

In a world of fast-paced technology and instant results, few people have the time for manual data entry. It’s time-consuming and tiring, raising the chances of haphazardly-entered data in an incomplete form.

Automated data entry eliminates these issues. It simplifies the process for your employees and guides them through the process. The best modern CRMs process CDM data extracted from online social networking profiles and other resources without human error.

Employees authenticate this data and do some other work for increased productivity. Your CRM should handle the rest. The best stage for small businesses to opt for automation is early when data is received in manageable amounts.

2.   Choose Your Critical Data

“Most companies collect a lot of irrelevant data. Their team is entering so much that they lose track of exactly what is important.”

Hanna Lincoln (Lead Consultant, Award-Winning Sage Partner)

If you’re uncertain about your critical data, you should evaluate your customer segments and their journey with your company. This looks at the data collected at different stages of their relationship with your company. For example, at the beginning of the purchase, you’re not likely to ask about a customer’s residential address or social networking accounts.

You should also make sure that the data you’re gathering, no matter how many fields there are, is complete. Look for the number of fields filled or left out.

This process allows your company to sort through its relationships with its customers. Not only does this allow for a refresher on the sales process, but it also opens up the opportunity to remove unnecessary data from previous and inactive customers.

CRM & Data management

3. Regularly Clear Out Garbage

Think about not emptying the trash can for a month… pretty gross, right? Even if you’ve already decided on your critical data and have automated the entry process, there’s still a chance that unnecessary, duplicate, or invalid data is being stored.

With time, it’s highly likely that much of your customer data has changed. Most people change their email addresses or contact information in various phases. Make sure you are keeping up with your customers so that you won’t be left behind.

“Avoid duplicate data, such as companies or contact information. Not only is this a waste of space, but more importantly it causes frustration for employees using the data and also potential customers who are receiving inquiries as a result of the duplication.”

Mathew Boaman (VP & SEO Eng. at EZSolutions)

It is incredibly important to clean data constantly, even with automation. Make sure to create a strategy to handle data duplication.

Related: What is Webhook and How to Make it Work for You

4. Create a Universal Customer ID

A Universal Customer ID helps track a person regardless of available information. The US government assigns a unique number to every working adult that can be used to track them throughout their lives.

A UCID helps you chart customer data across many marketing channels. This provides you with a 360-degree view, ultimately helping you respond to each person’s unique desires and purchasing desires.


All data storage processes have imperfections. As a result, CRM data will always have some outdated information. However, these tips can eliminate future headaches caused by ignoring problems.

If this is your situation, what are you doing to help it? We want to hear from you!

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