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3 Ways Dirty B2B Data Could Damage Your Business
Since B2B data is regarded as a lifeblood for business marketing campaigns, using it correctly will bring a huge difference to your marketing campaigns. To put it differently, sourcing data and putting it into proper usage will come with more benefits that are not limited to gaining new leads or identifying new prospects. This would strengthen your sales revenue chain that’s vital in measuring the success of a business. All in all, the efficiency of B2B data depends on whether it’s clean data. For better understanding, clean data is one that’s accurate, reliable as well as legal. Most importantly, it’s responsible for bringing positive changes to your business. The success of a business in terms of the best strategic plans depends wholly on the aspect of cleanliness.
While clean data will bring success to the business, the opposite will be true when dirty data comes into the equation. Undoubtedly, dirty data is detrimental to your business since it will be result in poor decisions. There’s a huge gap that stands between clean data and dirty data, and the sooner you understand it the better for your business.
Features of unclean data
Your B2B data will be considered to be dirty if it meets the following criteria:
It’s out of date
It’s not accurate
It was obtained through fraudulent means
It’s worth noting that even your cleanest data could still be dirty because of errors that could have been committed while filling the form. This will happen more often when prospects are required to fill a form that appears on the Internet. It’s from this that you’re advised to check your data regularly to ensure that it meets a threshold of clean data. We’re now going to switch our gears and look at how dirty data will bring your business to its knees.
3 ways dirty B2B data could damage your business
1. Lost revenue
If you’re going to depend on the wrong data, then there are higher possibilities that you’re not targeting the correct audience. According to one of the infographics that were created by Software AG, bad data will make your business to lose between 10 and 25 percent of its rightful revenue. The loss of revenue will happen in two ways. One, it will reduce the volume of sales that has a direct impact on revenue flow. Secondly, you’ll be forced to pump more resources into cleaning your database and this will also reduce your business’s income margin. The worst scenario that will happen when you have a database with inaccurate records is the possibility of your message failing to reach the target audience. Businesses that experience this challenge hold on to contact information that’s no longer useful to the prospects. Things will become worse when you’re using fraudulent data. This will be more painful to your business more so with recent changes on Data Protection Law.
Apart from getting a lifetime ban, using falsehood to obtain would attract a hefty penalty of 20 million euros if it contravenes GDPR regulations. In the same fashion, your business will have an option of losing 2 percent of the global market if you’re talking of global companies. By and large, your company will lose huge revenue when it opts for dirty data. From weakening your sales revenue to hefty penalties, there’s no doubt that your entity is set to lose massively if it opts for dirty data.
2. Destroy your reputation
Developing a habit of using dirty data regularly could complicate your marketing strategy since it could see your marketing messages marked as spam. This is more common when email marketing tool comes into the equation. In fact, when marketing correspondences are received by the wrong audience, there’s a likelihood that they are going to view your entity as a nuisance. This could easily be passed to others and this would destroy the good name of your business. For example, when a person receives that’s being addressed to Mercy when his name is Peter will make your company to be perceived as disorganized.
As pointed out earlier, email is one channel that has no room for data inconsistency. Over relying on dirty data will see the bouncing of your emails, lower click-through rate as well as lowering the open rate of your emails. Too many bounces could lead to the blocking of your email account.
3. Committing irregularities
Over the years the United Kingdom has had several regulations that were meant to protect businesses plus individuals. Some rules that have gained prominence in the United Kingdom include those touching on unsolicited marketing messages. These regulations are outlined in what’s commonly known as the Privacy and Electronic Communications Regulations that were enacted more than 17 years ago. A good number of these regulations were part of the European Data Protection Act and placed powers to the ICO levy substantive fines for businesses that go against these laws.
More than four years ago, a lead generation firm became a victim of the regulations that saw it pay 350000 euros as damage. The firm was accused of making more than 46 million automated nuisance calls. Things are now worse with the enactment of GDPR regulations for more than two years. These regulations propose punitive measures for any person or organization that fails to adhere to data protection guidelines. Among the things that GDPR proposes is 20 million fines for the culprits or a 2 percent market share loss.
WHAT NEEDS TO BE DONE
In order to ensure that your business does not become a victim of fraudulent data, it’s good to ensure that only data that has been obtained from a reputable source, up to date and accurate is used in your business. Above all, check your database regularly to ensure that only clean data is in your records. Avoid buying a data list from companies that cannot prove their credentials.