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Data Decay: What, Why and How?
People and companies change every day. Companies make acquisitions, people change jobs, and intentions are dynamic. This means your data changes every day – but is your database up to date? Is the data you use to drive your business as accurate as the day you procured it? Data Decay is an issue that every company must face at some point. Email marketing databases, for example, naturally degrade by approximately 23% every year according to Hubspot.
Data decay has especially accelerated during and after the pandemic. This is agreed on by 79% of Customer Relationship Management (CRM) users according to The State of CRM Data Health in 2022 published by Validity. As the business environment restructures itself in the post-pandemic era, a new symptom is quickly spreading among companies: millions of workers are still quitting their jobs in 2022. The “Great Resignation” is affecting even the most solid data-driven strategies for B2B marketers.
High-quality data is the fuel that makes the sales funnel engines spin. According to the Global Data Management Report, which considered responses from 700 data-centric business leaders around the globe, 84% of B2B companies saw increasing demand for data-driven insights within their organizations during the COVID-19 pandemic. The effects derived from the “Great Reshuffle” or “Big Quit” have accelerated this decay to levels not fully understood.
While the degree of decay is not yet fully understood, our response to it can greatly mitigate the effects the decay will have on our organizations’ successful use of data to drive decisions. Here are 6 ways you can address data decay to ensure your data is accurate, up-to-date and, most of all, insightful:
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