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10 Ways Bad Data Affects Your Bottom Line

  • Mediocre marketing campaign results

Your email strategy is only as good as the data you use to create it. Incomplete, incorrect and inaccurate data is responsible for meager conversion rates, low open and click-through rates, and high bounce rates. According to Salesforce, 62 percent of customers expect companies to send personalized offers. With bad data, personalization is near impossible, and you can forget about segmentation.

  • Poor ROI from MAP and CRM

Because of bad data you aren’t getting the most from your marketing automation investment.

Platforms like Salesforce, Eloqua, and Marketo are valuable tools that help you connect with customers and bring in new business. But inaccurate and duplicate data in your CRM lowers the efficiency of marketing campaigns and affects the ROI of your business. MAP and CRM tools are only as good as the data that’s in them.

  • Customer satisfaction & retention issues

Your company needs correct data about clients and their purchasing history to deliver quality customer service. Without employees having the right information at the right time inadequate service, long wait times, or abandoned purchases cause customers to lose confidence in your company.

Bad data also causes frustration when customers are improperly targeted. If you have an omnichannel campaign and contact a customer on a channel on which they do not wish to be contacted, you may lose that customer. American Express found that one-third of customers are likely to switch after just one negative experience

  • Bad leads and fewer sales

Bad contact data means flawed lead scoring—which means missed sales opportunities. Because of stale, incorrect or duplicate data, marketing teams create ineffective campaigns, then pass bad lead information to the sales team. Chasing the wrong prospects is a waste of time and leads to fewer sales and lost revenue and poor customer satisfaction.

  • Uninformed decision-making & wrong strategy

With bad data, you’ll make poorly informed decisions, incorrect forecasts, and unachievable goals. When marketing has inaccurate data, it often causes them to target the wrong prospects, miss their targets, and salespeople have a difficult time meeting their goals. Senior executives often make decisions based on gut feelings instead of hard data, because they don’t trust it. Not to mention, a sound supply chain must have access to good data, to allow for quick decisions.  A good strategy depends heavily on reporting. Reports measure performance and provide insights to guide future decision-making. Without good data, accurate reports are not feasible.

  • Poor productivity & labor utilization

LeadJen found that carrying out a lead generation program without good data wastes 27.3 percent of each salesperson’s time. And DiscoverOrg says that sales and marketing departments lose approximately 550 hours and up to $32,000 per sales rep from using bad data. Not to mention the loss of productivity when employees spend valuable time fixing inaccurate data, filling in gaps, and verifying contact information—it saps valuable resources and causes poor morale.

  • Loss of credibility & reputation

Bad data leads to bounced emails. Enough of these and it could get you blocked. When your domain is blocked your lead gen machine screeches to a halt.  A high bounceback rate could also put your IP on a blacklist—which affects any email from that IP, including your sales and customer service communications.

Also, when your email campaigns aren’t targeted properly or you send multiple emails due to duplicate data, your customers get annoyed. An annoyed customer is not likely to purchase from you. The success rate of selling to an existing customer is 60-70% while the success rate of acquiring a new customer is only 5-20%

Government regulations such as GDPR, CASL, CCPA and others are comprehensive, complex regulations with fines that can hit the bottom line hard. You must be honest about automated data management and your marketing team must audit their data and secure opt-ins, in addition to ensuring that any new or existing automated data capture procedures are obtained with consent.

  • Improper lead routing

If the right lead does not get to the right salesperson, in a timely fashion, you can forget high conversion rates. You may have excellent routing technology and sound logic, but with inaccurate data, you’ll waste valuable selling time just spinning your wheels.

  • Incorrect billing & payments

According to data quality expert Thomas C. Redman, billing records have a 2 percent to 7 percent error rate. Bad data can lead to delayed, missing or incorrect customer invoices, overdue supplier payments, and increased interest rates.

Don’t let any of these issues impact your bottom line. Using a contact data maintenance plan keeps your data fresh, up-to-date and actionable.