Updating CRM data is a common method of enabling users to search for updated information for a specific customer or contact. This approach usually involves manually searching for data, by clicking on an "Update" button from the customer record. This method has its advantages, notably simplicity and the ability to target specific data. However, it also has significant limitations.
Benefits of the update :
Direct Control: Users have direct control over the data update process, which can be useful for critical information.
Selective targeting: Users can choose which specific information they wish to update, which can be effective for specific needs.
Immediacy: Data is updated in real time, which can be useful when information needs to be updated immediately.
However, manual updating of CRM data also has significant disadvantages:
Disadvantages of the update :
Time and effort: Manual updating can be tedious and time-consuming, especially for large databases.
Risk of errors: Users are likely to make mistakes when updating data, which can lead to inaccuracies.
Lack of proactivity: Updating relies on the user's initiative, which means that crucial information may be omitted or updated late.
Unlike manual updating, the proactive approach to CRM data enrichment involves constantly monitoring changes and movements related to customers and contacts. This approach aims to provide up-to-date information without requiring manual action on the part of the user.
Benefits of the proactive approach :
Current data: Data is constantly updated, ensuring that it is always up to date.
Reduced Workload: Users don't need to spend time on manual updates, allowing them to concentrate on more strategic tasks.
Better quality: Human errors are minimized, which improves data quality.
Opportunity identification: The proactive approach enables sales opportunities and trends to be detected more quickly, by providing information on changes in customer behavior.
Informed decision-making: Up-to-date, accurate data enables decision-makers to make more informed, strategic decisions.
How does the proactive approach work?
The proactive approach to CRM data enrichment relies on the use of technologies such as artificial intelligence (AI) and machine learning (ML). These systems are capable of monitoring a multitude of data sources in real time, such as social networks, news, public databases and so on. They identify relevant changes concerning customers and contacts, such as a change of job, a move, or a new interest. This information is then automatically updated in the CRM.
Comparison: Update vs. proactive approach
To better understand the benefits of the proactive approach, let's look at a hypothetical scenario where a company uses either of these methods to manage its CRM data.
Scenario 1: Update
A company uses manual updating of its CRM data. When a sales rep wants to obtain up-to-date information on a specific customer, he or she has to update it manually, which takes time. As a result, some information may remain obsolete, and the company may miss out on new opportunities.
Scenario 2: Proactive approach
Another company uses a proactive approach to CRM data enrichment. Its monitoring systems automatically identify customer-related changes, such as job changes, moves or new interests. Sales staff have constant access to up-to-date information, enabling them to act quickly on new opportunities.
Another interesting way of updating CRM data is based on the principle of co-opetition between users, a little like what we do in Waze by indicating dangers on the road, or by giving notes on such and such products, or by indicating in the CRM medical place the new practice sites of Health Professionals not yet included in the public databases. In this model, updated public data is shared with all CRM users. This makes it possible to be more reactive in updating databases, especially when these updates come from external sources that are not updated as quickly as desired.
Advantages of co-opetition :
Shared data collection This approach allows users to pool their efforts to keep data up to date. When a user updates contact information, this updated data is shared with the whole team.
Improved responsiveness: By using external data to update information, users can be more responsive to changes in the customer environment.
Reduce redundant work: Rather than having each user manually update the same data, this approach reduces duplication of effort.
Reliability of external sources: Using external sources can improve data reliability, as they often come from trusted sources.
However, this co-opetition approach is not without its challenges:
Managing external sources : External sources need to be carefully managed to ensure their quality and relevance.
Privacy: Data collection and sharing must comply with privacy and data security regulations.
Coordination: Effective coordination is essential to ensure that data is updated consistently and reliably.
Respect for business law: not all data is shared. Only public data can be shared. For example, data such as telephone numbers, contact e-mails or installed databases should not be shared, as they represent a research effort for the implementer.
CRM data enrichment is essential for maintaining accurate, up-to-date customer databases. Implementing manual updates offers direct control, but has disadvantages in terms of time, potential errors and responsiveness. It cannot be considered in isolation. The proactive approach of data enrichment can complement it, and offers significant advantages in terms of up-to-date data, reduced workload, improved quality, and the ability to detect opportunities early.
Complementing this, co-opetition between users to update CRM data is an interesting approach that combines the advantages of manual updating and a proactive approach. It enables users to share up-to-date data from external sources, improving the responsiveness and reliability of customer information. However, it requires careful management of external sources and effective coordination within the team. Ultimately, the choice of CRM data update approach will depend on the company's specific needs and CRM objectives.
