From Healthcare to Sales: How RealPhoneValidation Helps to Prevent Data Decay

Businesses need to reach customers, but every day, they face a steady erosion of their valuable contact information. According to recent reports, approximately 75% of CRM users said that “poor data costs their company customers,” and nearly half stated that “bad data leads to revenue losses of more than 10%.” Estimates from DataAxleUSA place the rate of phone data decay at around 18% per year.

Contact information is often a business’s life’s blood, and the scale of their contact lists can be staggering. “Our lead-gen customers validate hundreds to thousands of numbers a day,” says JoAnn Fitzpatrick, COO at RealValidation, Inc. “Our corporate customers with large data sets validate hundreds of thousands to millions of numbers daily. We help these organizations identify disconnected phone numbers and enhance their communication strategies. Accurate phone numbers translate into improved customer engagement, reduced operational waste, and a higher ROI on communication initiatives.”

What is data decay?

In today’s fast-paced digital world, contact information quickly becomes outdated. Data decay, or degradation, is the inevitable decline in the accuracy of customer contact information. As people move to different homes, transition to new employment, change phone numbers, switch email accounts, get married, get divorced, pass away, or simply enter incorrect data, a contact list becomes less and less accurate over time.

“Phone number validation is indispensable when maintaining a contact database’s integrity,” notes Fitzpatrick. “The inability to reach clients due to decayed phone number data results in missed opportunities, decreased customer engagement, and potential revenue loss.”   

Data decay significantly impacts certain industries. For example, accurate contact information is crucial in the healthcare industry, as it enables providers to schedule appointments and offer follow-up care, while outdated contact information disrupts critical patient communication and emergency contacts. RealPhoneValidation helps ensure that healthcare providers have accurate phone numbers to reach patients, reducing the risk of missed appointments and improving patient engagement.

Insurance companies also heavily rely on phone communication to connect with their policyholders since up-to-date contact details are essential in claims processing, policy updates, and customer outreach. By validating phone numbers, insurance providers ensure efficient communication throughout the customer journey.

In finance, accurate phone numbers enable enhanced customer service, fraud prevention, and regulatory compliance. In this sector, incorrect information quickly leads to security risks and customer dissatisfaction.

Political campaigns also rely heavily on phone outreach to engage with voters, disseminate information, and mobilize support. With RealPhoneValidation, political campaigns can ensure that their phone banking efforts are targeted and effective, focusing on valid phone numbers and actively engaging with potential voters.

How RealPhoneValidation took on the problem of data decay

According to Fitzpatrick, data decay is a complex problem. “Our flagship service, RealPhoneValidation, took shape as a specialized tool within VOISYS, our lead generation business,” she explains. “We wanted to boost the lead quality we delivered and were unimpressed by the accuracy of the market’s existing validation services. Our CEO, Nick Spiridellis, took the initiative to devise a custom validation approach that catered specifically to our needs.”

When VOISYS implemented Spiridellis’ validation service into its processes, it streamlined operations, saved valuable time and resources, and increased contact with potential customers. The success of the in-house solution led to positive feedback from clients, who soon expressed interest in utilizing the validation methods for their own leads. Spiridellis broadened the validation service to extend beyond vetting new leads to identify disconnected numbers in existing customer lists and databases.

RealPhoneValidation distinguishes itself from other validation solutions by checking carrier and phone switch data in real time. Unlike other services, RealPhoneValidation alerts clients to a number’s connected or disconnected status, indicating whether a phone number is assigned to an end-user.

Competitors rely on less timely database lookups and can only categorize numbers as either active/inactive or valid/invalid. An active/inactive status only confirms a number is registered to a carrier, not its actual assignment to a user, while a valid/invalid status merely checks for correct formatting without verifying current usage.

“Our level of detail equips your business with more accurate and relevant information,” Fitzpatrick affirms. “Improved data accuracy directly translates to more targeted and effective marketing strategies. This helps ensure communications reach the intended recipients, increases conversion rates, reduces operational costs, and avoids wasting time and resources.”

Furthermore, when companies have access to accurate data, they can more easily achieve compliance with regulatory standards, mitigating legal and financial risks. Ultimately, maintaining up-to-date data reinforces brand reputation by demonstrating a commitment to respecting customers’ information, which further fosters trust and loyalty among them.

RealPhoneValidation offers this self-service phone validation in three options. Clients either access real-time validation through an API, take advantage of batch processing via a user portal, or secure data submission using FTP.

“Phone number validation empowers your business with the tools it needs to combat data decay,” concludes Fitzpatrick. “By validating numbers, you increase the accuracy of the contact information your company relies on to remain current. Preserving the integrity of your customer data supports informed decision-making and fosters strong relationships with customers.”