DATA DECAY
ILLUSTRATION PROVIDED BY ADOBE STOCK
THE
IMPACTS OF DATA DECAY
AND WHY CONTACT CENTERS NEED TO ADAPT .
BY JOANN FITZPATRICK , REALVALIDATION
In the age of digital transformation , businesses and organizations lean on the customer data they collect to make informed decisions and drive successful outcomes . However , this data has a serious flaw because , unlike fine wine , a company ’ s data does not improve with time .
A report from Data Axle indicates that customer phone data decays at approximately 18 %. When you add in email and addresses , the decay rate is nearly 30 % per year .
This phenomenon is known as data decay ( Research World ), and it has a hefty price tag ( 6sense ) and far-reaching implications across various sectors , including health insurance , political campaigns , and lead generation . Fortunately , today ’ s contact centers can implement proactive strategies to address the challenge .
22 CONTACT CENTER PIPELINE
WHEN AGENTS HAVE INACCURATE OR INCOMPLETE INFORMATION ABOUT CUSTOMERS , THEY CANNOT PROVIDE TIMELY AND SATISFACTORY SOLUTIONS ...
UNDERSTANDING DATA DECAY AND ITS IMPLICATIONS
Contact centers are the backbone of any customer-oriented business . The consumer data they gather enables them to evaluate customer preferences , create strategies to enhance the customer experience ( CX ), and build stronger customer relationships .
Contact centers are the vital bridge between businesses and customers in many industries , and that bridge is built on a foundation of accurate data .
For example , when insurance companies have up-to-date data , they can provide their customers with quality service and ensure compliance with regulatory requirements . But data decay in this industry leads to incorrect coverage information , claims processing delays , and missed renewal opportunities .
When agents have inaccurate or incomplete information about customers , they cannot provide timely and satisfactory solutions to their inquiries or complaints , often resulting in prolonged wait times , multiple transfers , or unresolved issues .