Don’t Let Data Decay Affect Your Growth: Everything You Need To Know To Get Rid of Data Decay
Your CRM system provides valuable information about prospects, customers, vendors, and employees. CRM data decay is a significant challenge that can reduce sales and customer satisfaction, increase employee turnover, and create dissatisfaction across teams.
According to a study, CRM data quality issues have impacted 95% of organizations’ ability to use their CRM effectively, and 44% of surveyed users reported losing more than 10% of annual revenue due to CRM data decay. Respondents expect their CRM data to degrade by 34% annually without major improvements.
The quality and freshness of data are critical to CRM performance. This blog explores what data decay is, its business impact, and how to reduce CRM data decay while prioritizing data quality.
For more insights on how marketing operations help maintain data quality, read Marketing Operations: The Key to Business Growth.
What Causes Data Decay? Understanding the Key Factors Behind CRM Data Loss
Bad data—outdated, inaccurate, duplicated, improperly formatted, or incomplete information—is the primary cause of data decay. Below are the most common contributors.
1) Outdated Data
Customer and company data may be accurate when first collected but becomes outdated over time. People change jobs, phone numbers, and locations, while companies may undergo mergers, closures, or relocations.
- 40% of email users change their email address every two years
- 20% of postal addresses change annually
- 18% of phone numbers change each year
- 60% of employees change roles internally every year
2) Incorrect Formatting
Firmographic and demographic data can be captured in inconsistent formats across platforms and teams. Establishing naming conventions helps prevent this issue.
3) Inaccurate Data Entry
Users may submit incorrect information through forms, or manual data entry errors may occur. These inaccuracies then propagate across sales and marketing communications.
4) Duplicate Records
Duplicate records often result from list imports, multiple subscriptions, or overlapping campaigns, leading to fragmented engagement and reporting inaccuracies.
The Repercussions of Data Decay on Your Business
Data decay directly impacts revenue, operational efficiency, and employee morale.
- Loss of Customers: Duplicate outreach and miscommunication erode trust
- Missed Sales Opportunities: Poor data reduces lead conversion rates
- Lost Revenue: Businesses can lose 10% or more annually due to bad data
- Employee Turnover: Frustration from unreliable data leads to disengagement
- Cross-Team Friction: Marketing and sales misalignment increases
Human expertise combined with technology plays a critical role in minimizing these challenges.
Best Practices for Reducing CRM Data Decay
High-quality CRM data allows teams to focus on meaningful engagement instead of correcting errors. Below are proven strategies to reduce data decay.
1) Implement a Data Hygiene Strategy
- Monitor and update existing records
- Remove duplicate entries
- Validate new contacts
- Complete missing data fields
Automated tools can perform these checks in real time, reducing manual effort and errors.
Cross-team collaboration—especially between marketing and demand generation—ensures shared accountability for data quality.
2) Confirm Opt-Ins
Double opt-in processes verify email accuracy and ensure subscribers intentionally complete registrations.
3) Backup Your Data
- 94% of businesses never fully recover from catastrophic data loss
- Secure cloud backups reduce risk and support disaster recovery
4) Outsource Data Cleaning
Professional data management services eliminate duplicates, remove outdated records, and ensure accurate segmentation across sales, marketing, and customer success.
The Role of CRM Tools and Automation
- CRM platforms like HubSpot and Salesforce provide built-in data cleansing and enrichment
- Automation and AI identify and resolve issues proactively
- Validation tools verify accuracy at the point of entry
Implementing a Data Quality Program
- Assess current data quality
- Define data standards
- Establish governance policies
- Train employees on best practices
- Monitor and refine quality metrics
Conducting a MarTech stack audit helps identify gaps and inefficiencies across platforms.
Conclusion
Accurate, up-to-date CRM data drives better customer experiences, informed decision-making, and sustainable revenue growth. Investing in data quality initiatives minimizes risk and maximizes CRM value.
Learn how marketing operations support business growth by delivering clean, actionable data across teams.
Assess your CRM data practices today and invest in strategies that ensure long-term data accuracy.
