For B2B marketers, seeing low conversion rates, high email bounce rates, and poor pipeline velocity can be extremely frustrating. However, it’s often tough to know the root cause. Is it mistargeted content? Faulty targeting? Lack of personalization? Or maybe the overall positioning?
For B2B salespeople, reaching out to a prospect at the wrong time or without the relevant information on hand can damage rapport and even break a deal. Being bogged down in bad data can also lead sales reps down a rabbit hole, making for an elongated sales cycle.
At the bottom of all these challenges is one underlying issue that often goes overlooked: DIRTY DATA. Inaccurate, inconsistent, missing, or incomplete data can all negatively impact your bottom line.
While data management can be a complicated, time-consuming process, regular data cleansing is core to successful B2B sales and marketing.
Calculating the True Cost of Messy Data
Investing in intent identification tools, automated workflow solutions, and paid industry lists can give your sales and marketing a much-needed boost. But without a solid foundation to capture and categorize new information and log customer interactions, adopting these tools can contribute to your database becoming swamped with dirty data.
As many as 50% of prospects aren’t a good fit for your product/service and around 40% of generated leads have poor data quality, such as missing form fields, invalid emails, or duplicate data. A database that lacks critical information can lengthen your sales cycle by an average of 8% to 14%. This means it’s vital to carefully filter through what to save and what to keep.
At the end of the day, even if you’re careful about what gets incorporated into your database, the nature of customer data is that it changes and evolves over time. Customer data decays at least 30% each year and as much as 70% in B2B markets with high employee turnover. If not addressed promptly, there’s a good chance you’ll begin to see this decay seriously impact revenue growth.
Couple the rate of decay with the fact that the amount of prospect and customer data at B2B companies typically doubles every 12 to 18 months (according to SiriusDecisions, now part of Forrester). You’ve got a snowball effect. Fixing your data is obviously something you need to get a handle on, and fast.
The calculator below (based off a tool created by our friends at SiriusDecisions) helps you understand the dollar value of maintaining clean data in your system.
Just input the number of records in your database(s) and the average sales price (ASP) to get estimates of how data health is likely impacting your revenue. You’ll see the effects of dirty data at each stage of the funnel, with results for your database modeled using both an “average” and “best-in-class” scenario.
|Usable Prospect Records||375000.0||450000.0||Average: 75% usable records/25% unusable records
Best-in-Class: 90% usable records/10% unusable records
|Inquires (INQ)||7500.0||9000.0||Assumption: 2% prospect to INQ rate|
|Marketing Qualified Leads (MQLs)||292.5||439.9||Average: 3.9% INQ to MQL conversion rate
Best-in-Class: 4.9% INQ to MQL conversion rate (25% improvement)
|Sales Accepted Leads (SALs)||168.5||289.9||Average: 58.3% MQL to SAL conversion rate
Best-in-Class: 65.6% MQL to SAL conversion rate (as trust builds with sales in lead quality, conversion rate improves)
|Sales Qualified Lead (SQLs)||82.6||142.1||Assumption: 49% SAL to SQL conversation rate with teleprospecting|
|Closed Won Business||18.9||32.6||Assumption: 22.94% Win rate|
|Revenue||$945,000.00||$1,630,000.00||Best-in-Class: will realize 66% higher revenue than those in the Average category|
Finding Solid Ground Can Be a Launch Pad for Your Business
Beyond governing and enriching your data, you need a central engine that can organize it all. A good customer data platform (CDP) regularly removes outdated data, updates records, and cleans up duplicates. Leadspace’s B2B CDP unifies data from internal and external sources, using AI and custom scoring models to parse through the information and connect the dots in a way that’s most relevant for your sales and marketing efforts.
By combining the information you already know about a customer with new data points in an intelligent way, Leadspace gives your teams comprehensive, living customer and account profiles packed with all sorts of useful details. This means you can get familiar with customers prior to outreach with insights into their likelihood and readiness to buy, who is responsible for making decisions at their organization, who makes up the buying team, and how they fit your ideal customer profile (ICP).
Unified customer profiles make it easy to know which accounts to prioritize and where and when to focus energies and resources. Also, because Leadspace is channel-agnostic, you can activate your enriched, unified data across any system to engage with customers how and where you see fit.
From data ingestion all the way to program activation, having a solid foundation of intelligence removes data silos and aligns teams so you can save time and money with more effective programs and efficient outreach. And, your customers get a better, more personalized experience during their engagements with your brand. An evolving solution to fix a compounding problem!