Why Data Cleansing is Important for eCommerce Businesses

Andrea Martinez
August 4, 2022
 Mins Read

For any eCommerce business, the collection and analysis of a vast amount of data is an essential part of the job. However, how that data is processed in a strategic and structured manner is what adds value to your business.  Irregularity and impurities in data can cause disruptions and prolong or impede its effective utilization.

This is where data cleansing comes in handy. It is a process by which ecommerce outsourcing companies can save precious time and effort while increasing their efficiency manifold. Data cleansing tools and services are used to monitor all the data generated with an eagle’s eye. These tools and services will help delete any duplicate data, and also, amend wrongly formatted, incorrect, and incomplete data from marketing lists, databases, and CRM software.

Some common problems that data cleansing tools and expert services can solve for your business include:

  • Incorrectly formatted phone numbers
  • Incorrect or redundant e-mail addresses
  • Incorrect names and mailing addresses
  • Duplicate usernames and other information

Here are the reasons why data cleansing is important for your eCommerce business.

The Importance of Data Cleansing for eCommerce Businesses

1. Cleaner Database:

Using data cleansing techniques to maintain a clean database helps e-businesses to remain compliant with standards that are legally expected of them. For instance, in some regions, companies are duty-bound to ensure that their data is as accurate and current as possible. Also, data cleansing helps to preserve space by eliminating information that is no longer needed – or data that companies are no longer permitted to keep – and helps remove it simply, quickly, and efficiently.

2. Better Mailing Systems:

Incorrect data can lead to sending mailers to customers who do not require your products or are not connected to you in any way. Data cleansing reduces the occurrence of irrelevant mail being sent out. This improves the chance of users opening an important mail from your business since it is targeted at their needs. It also prevents your store from being classified as an annoyance, which can be detrimental to your business.

3. Prevent Security Fraud:

In 2011, according to Cyber Source, merchants lost USD 3.4 billion due to online fraud. There are people who visit your store with the intention of committing fraud, by providing falsified information.  Data cleansing and validation will protect against stolen credit card information being entered and identify theft since it checks that data is valid and secure before being processed.

4. Better Time and Resources Management:

If you plan to manually edit each and every piece of data entered into your database, be prepared to spend a great amount of time, money, and resources, and still not achieve 100% results.  A sensible approach, therefore, is to utilize professional data cleansing services that will instantly verify and validate your customer data. This will free up your company’s valuable time and resources to work on other mission-critical projects.

5. Revenue Generation:

Accurate information on customers will ensure that you are targeting the right people with the right products and personalized offers. It not only helps in converting first-time customers but also makes your web store ready for subsequent and repeat business, ensuring that you continue to grow year after year.

6. Real-Time Verification:

It is a fact that people like shopping online because it is fast, easy, and convenient. However, at times, users unintentionally fill in wrong information due to typing errors or slow speed, which can create problems later. As a merchant, it is your duty to instantly verify the information fed into your database and close the loop before frustration sets in the customer’s mind. Real-time solutions ensure that customer data is cleansed while they are still engaged on your website.

7. Better Consumer Analytics:

Clean and correct data on consumer behavior helps generate insights on likes and dislikes, which provides immense opportunities for businesses to up-sell products that suit individual requirements. Data validation helps ensure that a marketing and sales process operates on clean, correct, and useful data, for you to make better decisions.

Data cleansing is critical to eCommerce businesses and their sustained success.

Article by
Andrea Martinez

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