Bad Data is Expensive!

What is Dirty Data?

Dirty or Bad Data is simply data that is not useful. It is either outdated, duplicated or inaccurate. A lot of businesses are starting to realize the dreadful cost of poor data. Bad data does not only cost businesses money, but growth opportunities and time.  Consider Sales team have really bad data in their CRM. From a recent case study of one of our clients over 54% of their sales leads were dead or inactive and a complete waste of their sales people time

Losing out on Money

Bad data can cost companies a revenue loss of 15% to 25% per year¹. To put things into perspective – The US economy loses over $3 trillion every year² on dirty data! No better term to describe this enormous loss than ‘garbage in – garbage out’. Bad data leads to bad outcomes. Different silos are wasting their time chasing after incorrect leads and there is an incremental loss on the revenue acquisition opportunities. Companies have the tendency to keep incorrect information in databases like Salesforce and Oracle. It takes a lot of time and money to clean up this messy data.

Inferior data can damage a company’s reputation as well, which naturally impacts the revenue growth. ‘’57% of businesses find out about dirty data when it’s reported by customers or prospects.’’ This is not a good way to learn about your poor data! Salespeople lose trust in the accuracy of their contacts for this reason.

How much Dirty Data is there?

 Dirty data just keeps multiplying year on year.‘’40% of all leads generated have poor data quality’’ and ‘’25% of the average B2B marketer’s database is inaccurate and 60% of companies have an overall data health of unreliable’’³. Poor data is affecting B2B lead generation and preventing growth opportunities.

‘’95% of businesses have seen the impacts of poor data quality’’⁴, so it makes sense that 91% of business leaders have decided to prioritize the quality of their data.

Data Management

Data warehouses are continuously gaining popularity. ‘’CRM is the largest and fastest-growing enterprise application software category, and worldwide spending on CRM is expected to reach USD $114.4 billion by the year 2027.’’⁵ These platforms are not only being used to organize and manage your data, but it can help unify the different silos within the company and improve the management of customer relationships due to a shared database platform. Poor interdepartmental communication is involved in 35% of inaccurate data records. CRM eliminates this.

Invest in your Data

9% of people change their jobs every year, therefore the data in your CRM systems needs to be changed regularly. A good lead generation tool is needed for this exact reason. TAMI has the most accurate business data worldwide. TAMI is also fully integrated with Salesforce. The right data tools are needed in order to establish a clean sales pipeline!

However, even with all the right tools, some data can still become dirty. Human error influences over 60% of poor data. Educating the employees on how to manage the data correctly would be an investment on growth and time.

Bad data is overflowing the CRM systems so why not try our Salesforce Enhance and Refresh Product. Check out  more on our product page. Try it out and TAMI will flag what accounts and leads to delete and send you alerts on when people change their job or job title.

Bibliography

1. What Is Dirty Data? This Sales Operations Pro Has Answers | Salesforce
2. The Staggering Impact of Dirty Data – MarkLogic
3. Report: Poor Data Quality Impacting B2B Lead Generation | KoMarketing
4. Why improving data quality is a top trend | Experian (edq.com)
5. What is CRM? – Salesforce.com