What does the term data washing really mean and why is it a crucial factor for any business? Dive into the meaning of data washing, from ensuring accurate customer information to understanding the risks of neglecting this essential process.
Discover five compelling reasons why data washing is not just a good idea, but an indispensable practice to strengthen your business relationships and optimize your marketing efforts.
The term "data washing" refers to a series of actions that ensure that your information and data is always correct, up-to-date and current. In other words, data washing involves a process where data is cleaned of errors and omissions. Data washing is also occasionally referred to as data validation, where data is validated for errors.
By performing data washing, you ensure that your data is up-to-date and free from errors. Data washing is often associated with customer information, where information such as customer names, addresses, CPR, CVR and other general information is updated.
Data washing can either be performed at customer creation or as an ongoing process. In general, ongoing data washing is recommended as customers may change address, phone number etc. during the customer relationship.
Both private customers and businesses can be data washed.
There are many reasons why data washing is a good idea. The main reason, of course, is that it's the only way to ensure your data is up-to-date and current.
The customer may have changed address, name, phone number, gone bankrupt, have advertising protection, received a payment remark, left the country or passed away. Datavask ensures that you are dealing with the correct people and companies and guarantees that their information is correct.
How often you need to data wash customer information varies. A general rule of thumb is that the more customers and the more credit you provide, the more often you should data mask your customer database.
Some companies choose to data wash at customer creation to ensure correct data in ERP, accounting software or CRM, while others choose monthly or even daily data washing. Frequent data washing ensures more accurate customer information.
If you periodically data-wash your customer information, you ensure that the customer's general information is up to date. This means, for example, that you send letters, goods etc. to the correct places with the right information.
Data wash also ensures that you are aware of whether the customer has a payment remark, is out of town or deceased.
Errors in information can be costly, as it can lead to the delivery of goods to incorrect addresses or communication to non-existent recipients. Data washing reduces the risk of such costs.
Do you really know who you're doing business with? And what the consequences can be if you don't? Data washing can be an integral part of effective KYC (Know Your Customer), ensuring that you are always aware of who you are trading or working with.
KYC is not a legal requirement for everyone, but it is for banks, real estate agents, etc. The principle behind KYC is valuable; by knowing your customers, you know who you do business with, where they live and how to contact them if, for example, an invoice is not paid on time.
Without knowing who you're doing business with, you run the risk of complicating several legal matters. For example, not having accurate customer information, including full name, a correct address, or missing or incomplete information, can result in you not being able to resort to debt collection.
If you have done business with someone like Anders Andersen without knowing the exact address, CPR number or CVR number, it can be almost impossible for debt collection companies or lawyers to trace him and thus assist you with debt collection procedures or similar.
If you have the correct information about the customer, it is (almost) always possible to find the customer's updated information, especially if you are sure that the customer has been a permanent resident at the given address.
If you do not have updated customer information and want to send out advertising, marketing and similar communications, you run the risk that the customer will not receive your material. This can result in neither you nor the customer achieving the desired results.
With data washing, you can target your marketing, achieve better segmentation and thus streamline sales efforts on the most promising leads. Data washing also helps to identify and sort out ad-excluded people, which helps minimize the risk of sending to people who do not want to receive advertising. This ensures a more precise and targeted approach in your marketing strategy.
If the task of data washing seems like a challenging task, let us do it for you!
Our data warehousing services ensure your customer information is up-to-date and accurate, which can save you time, costs and potential problems.
Contact us today at 77 30 14 14and let us help you optimize your data and boost your business efficiency.
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