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The Costs of Bad Data
With overwhelming amounts of data uploaded on the internet every day and the frequent changes it is difficult to find a reliable source. Incomplete, inaccurate and empty fields within online database or Customer Relationship Management (CRM) platform are all forms of Bad Data.
Source:http://www.business2community.com/big-data/bad-data-side-effects-01164045
The most problematic area of bad data includes
- Wrong phone number
- Outdated physical address
- Wrong title or job function
- No phone number or no email address
- Wrong email address
- Misspelled or incomplete company name
According to study conducted by business2community the biggest problems in databases were duplicate data, missing fields, invalid formatting or values and invalid email or physical addresses.
Source:http://www.business2community.com/big-data/bad-data-side-effects-01164045
Above mentioned points make it hard for potential clients to reach you thus wasting time and money. On the other hand, constantly updating the data also costs time, money and resources due to which many companies ignore this problem.
The data becomes useless most frequently because human resources:
- change roles within companies
- leave their current companies
- change phone numbers
- take on additional responsibilities within their current companies
Data is in a constant state of change, like the people and organizations that it represents. According to DiscoverOrg, 40% of email users change their email address at least once every two years, 15% change it one or more times per year, 20% of all postal addresses change every year, 18% of all telephone numbers change every year, 21% of all CEOs change every year, 25-33% of email addresses become outdated every year, 60% of people change job functions within their organization every year. In the next hour 58 business addresses will change, 11 companies will change their names and 41 new businesses will open.
Source:http://www.business2community.com/big-data/bad-data-side-effects-01164045
There are several kinds of costs a company suffers due to bad data. Namely, employees spend a lot of time without any success trying to contact people through worthless data, which is frustrating. Furthermore, the company loses numerous opportunities, resources and time.
Moreover, sales representatives spend almost half of their working hours to reach the decision makers, who do not work in the company or have changed their position. Many reach only hotlines or gatekeepers, but rarely the decision maker or a person aware of the company’s needs.
The greatest impact of inaccurate data has lead generation, marketing, customer relationship and finance as shown in the picture below.
Source:http://www.grazitti.com/blog/quick-steps-to-keep-your-data-clean/
Dedicating a team to manage sales and marketing data is one reliable option for keeping your data clean.
In order to keep you data clean it is also necessary to:
- Standardize your database
- Keep one field for one purpose
- Use automation for accurate data values
- Block duplicates
- Automate Data Appending
“People might respond to a poorly targeted message, but they can’t respond to a message they never get”
(David Raab, Demand Gen Expert)
