Data has changed the way that sales and marketing teams think and feel. No longer does intuition sit in the driver’s seat. B2B contact data has taken the wheel, and for good reason. Today, businesses need data to develop strategies in response to market changes, competitor activity, customer preferences, and company-wise campaigns.
However, many decision-makers aren’t fully aware of how inaccurate data collection. And poor data maintenance can negatively impact their sales, marketing, and bottom line.
Do you know inaccurate data provided to clients can destroy the trust and image of a company? According to a report, inaccurate information costs U.S. businesses approximately $3 trillion per year. Based on the 1-10-100 data quality principle, the relative cost of fixing a data error increased exponentially over time, which is likely how it reached the $1 trillion mark by now.
If we apply this principle to customer relationship management (CRM) system, the cost of preventing bad data from entering a CRM system is $1, the cost of correcting the data is $10, and the cost of fixing the problem after it causes a failure, either internally or with a customer, is in the neighborhood of $100.
Here’s how inaccurate data can impact user adoption in the following costly ways:
The Impact of Inaccurate Data
- Murky Data Loses Trust
When data is put into CRM, users always believe the data is good, but if they find any glitch, they understand data is bad and harms the trust. They won’t want to “muddy the water.”
A manager who depends on CRM data for accurate forecasting is getting inaccurate reports due to missing, duplicates, and inaccurate data.
- Fluctuation Goes On and On
The main aim of any business to get good quality data consistently that builds trust. They’re more inclined to use the data to make business decisions and forecasts, making their jobs easier and their teams more effective.
With inaccurate data, marketing teams experience a massive bounce rate and have limited trust for the system.
- Limits the ROI
As sales representatives waste time searching through duplicates looking for the right account, they are less likely to adopt the CRM. If data is inaccurate or missing, making it harder to reach contacts, they may opt for other methods to access information.
So, impact of inaccurate data is critical for businesses and they need to institute a clear process for accomplishing and maintaining high-quality data. The result is a well-oiled CRM machine, filled with reliable data that fosters respect for the system.
This data can be put in place, and high user adoption across sales, marketing, and other business units.
Here’s look at why contact data accuracy is important.
- Targeting the Right Customers at the Right Time
Accurate contact data is essential for sales and marketing teams as it forms the basis for targeting the right customers. Having up-to-date data allows marketers to create personalized messages and promotions. They can also offer based on the specific preferences, needs, and behaviors of different segments within the target prospects.
- More Proficiently Customer Engagement
Having accurate data is essential for businesses to customize their messages and offers to meet the specific requirements and preferences of individual customers. By providing quality data, sales and marketing reps are more likely to gain attention from the customers.
- Data-driven Decision Making
Accurate and complete contact data is of paramount importance for data-driven decision-making. Sales and marketing teams can track and measure the success of their campaigns. They can also understand which strategies with specific customer segments.
This data-driven approach allows them to refine their marketing tactics and allocate resources more effectively.
With accurate contact data including validated phone numbers and email addresses of employees including key decision makers; you can connect with the right prospects.
Data should also be regularly cleansed and standardized. Of course, you stand a better chance of reaching your customers timely and close the leads.
