Objectives of Data Purification


Objectives of Data Purification

Data cleansing can be defined as taking an action to identify and remove or amend data in a database that’s incorrect, incomplete or duplicated. Data cleansing can also remove data that is unnecessary. Besides being expensive, a database that contains dirty data has the potential to damage customer relationships. Cleaning dirty data can increase your dealership’s efficiency and help the business gain effective insights based on meaningful data.

According to a recent article from BizReport.com, “… marketers are generating a large portion of poor-quality leads, including those with improper formatting and even inaccuracies. Bad prospect information can have negative consequences, including wasted media investment, squandered resources and poor customer experience, which marketers simply can’t afford.”

Your dealership’s CRM system represents a considerable financial outlay. Cleaning your CRM system’s data will allow you to see an optimal return on your investment. It’s estimated that 11.7 of people moved each year. It’s easy to see what that means in terms of how quickly data will become outdated over a relatively short time. If you don’t clean your database, over time, it will become filled with old, outdated customer data. According to Experian, the average business loses 12 percent of its revenue due to dirty data, and this figure doesn’t take missed opportunities into account.

These are some areas where a dirty database will cost your dealership:


email marketing


  • Direct Mail Costs: Despite the popularity of email and social media campaigns, direct mail marketing is still an important component of a dealership’s overall marketing strategy. Spending money to print and ship mailers that the prospect never receives because of a dirty database is a waste of resources.

  • Email Campaign Performance: While there are no printing and shipping costs associated with emailing customers and prospects, spending money on an email campaign that will never reach the intended targets will drag down your email campaign’s performance. With a clean database, you’ll reach more customers and potential customers, which translates into more sales.

  • Customer Retention: Every automotive dealership understands the value of customer retention. It isn’t possible to retain a customer who you can’t reach because your database is outdated. Ask yourself this question: How much revenue is one loyal customer worth to your dealership?

  • New Opportunities: New vehicle sales and leases, pre-owned vehicle sales, service and finance all represent opportunities for revenue. The dirtier your database, the less chance there is for your dealership to take advantage of these opportunities.

  • Ongoing Engagement: Your marketing campaigns are an important way to keep customers engaged, which creates an ongoing relationship with your dealership.

  • Reputation: Poor-quality contact data can damage your reputation with customers. A recent study shows that over 25% of respondents believed customer service suffered because of bad data.

We’ve outlined a few of the ways dirty data can cost your dealership. The first step is for dealerships to realize there’s a problem. Then, they must become proactive and institute remediation procedures to overcome the issues that result from dirty data.