Sean Shea is a philanthropist, TEDx speaker and founder and CEO of ViB, a company that generates quality leads for B2B companies globally.
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If your company starts the year with 10,000 contacts in one database, you might be left with just 3,000 usable contacts by the end of the year. That’s because B2B contact data decays as fast as 70.3% per year, according to Gartner (download required).
In B2B marketing, I think data decay is worth discussing because if you’re not actively working to combat it, your revenue may be in trouble. I don’t say that to alarm you but to help you be more aware of the issue.
Of course, talking about it and doing something about it are two different things. So, I hope by the end of this you will understand data decay, what’s at stake and what you can do about it, as early as today. Let’s start with the basics.
What Is B2B Data Decay And How Does It Happen?
Yes, “data decay” sounds scary, but the idea is simple. It refers to the degradation of your business data over time. Here, I’m referring specifically to your contact data—such as individuals’ email addresses, job titles and companies—that live in your CRM.
Why does data decay happen? As you know, you can’t keep it 100% accurate at all times because businesses are always changing. Contacts change positions, people get promoted and mergers or reorganizations can change entire company structures.
How Can Data Decay Affect Your Revenue?
According to a survey by Validity, 44% of respondents reported that their company experiences an annual revenue loss of over 10% attributed to CRM data decay.
Let’s put this into perspective. Imagine having a perfectly planned campaign, a well-articulated pitch and a robust product offering, only to see it all fall flat because your emails bounce back or your sales calls hit dead ends.
This is the stark reality when you're dealing with bad B2B contact data. You expend resources on leads that simply don't exist, or worse, approach the wrong individuals and burn potential bridges.
These silent pitfalls can wreak havoc on your ROI, affecting not just your marketing campaigns but also your sales efforts, customer relationships and, ultimately, your revenue.
Fortunately, there are steps you can take to combat it.
How Do You Combat B2B Data Decay?
The best approach you can take is to build a strategy that embraces consistent, preventative actions. Here are a few ideas for you to implement:
Conduct Regular Data Audits
Think of it like spring cleaning. With regular data audits, you can review your databases and identify any outdated or inaccurate entries.
Implement Data Validation
Use software tools or services that can validate the accuracy of your data. It’s akin to proofreading a document before hitting the send button. This step can help you catch potential problems before they get in the way of your revenue.
Embrace Data Appending
Ever tried completing a jigsaw puzzle? Data appending is a bit like finding those missing puzzle pieces. You can use external sources to fill in gaps in your data, adding more depth and context to your database.
Harness The Power Of B2B Data Providers
Data providers not only have access to well-maintained databases but also utilize sophisticated algorithms and technology to keep this data fresh. By collaborating with these providers, you’re basically hiring a data maintenance squad, saving your resources from draining bad data and empowering your decision-making with high-quality, accurate data.
Encourage Data Updates Directly
If you can make it easy for clients and contacts to update their own information, it’s like handing them the pen to write their own data story, which can help you keep up with any changes on their end.
The Future Of Data Decay
I see data decay as an epidemic, but by understanding it, facing it and using the right tools to combat it, you can save a tremendous amount of potentially lost revenue. What is the future of effective B2B marketing? Fresh, precise data.
So, let’s keep our data clean and our strategies sharp. The best thing you can do is to implement proactive data management practices now so you can begin to make data decay a non-issue.
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