Because if you have wrong information like their company contacts about your target customers, it can result in marketing campaigns that don’t resonate with them, products that don’t meet their needs, and customer service interactions that are off the mark.
Getting to know your target customers is essential for any business. You need to understand their demographics (age, gender, income level, etc.), their needs and wants, what drives them, and what challenges they face. If you have this information wrong, it can be costly for your business to lose sales and customers.
Identifying poor data
It can be challenging to identify insufficient data of prospects in B2B. However, here are a few tips to help you out:
- Look for inconsistencies in the data. This could include mismatches in email addresses, phone numbers, or company names.
- Check to see if the data is outdated. This could mean that the email addresses are no longer valid or that the company has gone out of business.
- See if the contact information is incomplete. This might include missing email addresses or telephone numbers.
How can insufficient data affect your sales negatively?
Insufficient data can have a significant impact on sales and marketing efforts. An inaccurate or incomplete contact database can lead to erroneous targeting, resulting in lower response rates and reduced deals. Additionally, insufficient data can increase marketing costs due to the need for additional outreach to reach the correct audience. Ultimately, adequate data can significantly negatively impact an organization’s bottom line.
Poor data leads to a high churn rate
The churn rate is the percentage of customers who leave a company in a given period. High churn rates are often the result of poor data quality, leading to inaccurate customer profiles, misidentified customer opportunities, and misplaced marketing dollars. As a result, customers may feel unsubscribed from or ignored by a company, leading them to take their business elsewhere.
To reduce churn rates, it’s essential to ensure that your data is accurate and up-to-date. This means cleansing your information regularly and using data verification methods like cross-validation and lookups against other external sources. With accurate data, you’ll be able to build better customer profiles, identify more customer opportunities, and get prospects into paying clients.
Poor data affect your company’s resources
Poor data can affect a company in so many ways. For example, if the wrong information is input into a database or system, it may cause resources to be wasted on unnecessary tasks. It also affects how quickly decisions can be made and products launched because there’s no way of knowing what will happen with sales until after they’ve occurred (which means you’ll have wasted money on advertising). The list goes on – poor data management wastes time, effort and money!
Poor data leads to ill-informed decisions
There are a few key ways in which insufficient data can lead to bad decisions. First, if the data is inaccurate or incomplete, it can lead decision-makers astray. For example, if a company relies on incorrect sales numbers when making marketing decisions, it may make choices that are not profitable or alienate customers.
Second, if the decision-makers are not well-informed about using and interpreting data correctly, they can make faulty decisions based on misinterpreted information.
How to fix it?
One way is to improve the data entry process to enter only accurate data into the system. Another way is to improve the data quality by cleansing it and removing any errors. And finally, you can use data profiling and analytics tools to understand the quality of the data better and find ways to improve it.
Verify that the data is sourced from reputable sources. You don’t want to waste your time chasing down leads that don’t exist!
To sum up
Data is the new oil. It’s what fuels our digital world, and without it, we’re lost at sea. Data can be your best friend or your worst enemy – it all depends on how you use it to power your business goals. And with so many companies competing for customer attention in today’s noisy marketplace, every scrap of data counts!
Joseph Tall is a competent product specialist with years of experience at Soleadify