Why Contacts in a Database Should Not Be Deleted?

I often have  clients ask me when they should be deleting contacts from the database.  Below are some of the common reasons I hear why people delete contacts from databases and my thoughts for why that contact should not be deleted:

• The contact was a bad customer. They never paid their bills on time or constantly argued any charges on their account.

Reason to keep the contact: No one likes a deadbeat customer. However, deleting the contact from the database means that future employees will have no knowledge of what type of customer this is. If the client calls back in the future, as all deadbeat customers tend to do, the person answering the phone will have no way of knowing that this is a bad customer and a waste of time to your organization. Keep the contact  in the database but be sure to document  this customer’s history. One easy way to notate this customer’s status is to modify the ID/Status dropdown to include a Former Client value. Employees should be trained that any contact with Former Client in the ID/Status drop down should be discussed with management prior to pursuing further.

• Contact no longer works at the organization.

Reason to keep the contact – Review your notes, history and opportunities for that customer. Determine if the information is tied to the contact or if it’s tied to the company that the contact worked for. If the information is tied to the contact, then simply update the contact’s record to reflect where they work now.  If all of the information under the record is related to the company, then update the record to reflect who the new point person is. If you aren’t sure who the replacement person is going to be,  update the database to reflect that fact and then schedule a reminder to follow-up regularly with the company until they have hired the replacement person.

• We have a lot of contacts in our database. We’re worried that the database can’t handle more than a few thousand contacts.

Reason to keep the contact: Depending on the version of ACT! that you are currently running, the newer versions of ACT! are robust enough to handle over 100,000 contacts. The limit of how much data the database can hold is not just limited to the contacts but also what type of data you are storing for those contacts i.e. notes, history and opportunities. By deleting contacts in the database, you could be limiting your marketing capabilities. Contacts can often lay dormant for years before deciding to make a purchase. Often one marketing piece appearing at just the right time is enough to rekindle that relationship. Deleting contacts from the database can limit your marketing outreach.

I hoped I’ve helped debunk a few common myths in regards to reasons why contacts should not be removed from the database.

Tagged as: ACT! Contact Management