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In the fast-paced world of industrial sales and marketing, data is the currency that fuels decision-making, strategic planning, and closing deals. For professionals working with manufacturers, the quality of contact data is essential. However, a silent threat looms over the integrity of this data: data decay.
Data decay refers to the gradual deterioration of data quality over time. It’s an inevitable process driven by the dynamic nature of business contacts—people change jobs, companies relocate, and businesses close, rendering once-accurate contact information obsolete. The implications of this phenomenon are far-reaching, particularly for those who rely on this data to forge connections and drive sales.
Statistics paint a stark picture of the impact of data decay. According to this study involving 1,000 business cards, a staggering 70.8% had one or more changes within just 12 months. This means that nearly three-quarters of your contact data could be outdated within a year. The most common change was in job titles and functions, with 65.8% of individuals experiencing shifts in their roles, either within the same company or by moving to a new one.
Additionally:
• 41.9% of contacts had address changes, often due to company relocations or job changes.
• 42.9% of contacts acquired new phone numbers, further complicating communication efforts.
• 37.3% of email addresses changed, challenging the perception that email is a stable contact method.
• 29.6% of individuals changed companies entirely, disrupting connections with key decision-makers.
Wider studies reflect similar trends, with Gartner reporting that B2B contact data accuracy erodes by up to 70.3% per year.
Beyond contact data, firmographic data is equally susceptible to decay, and relying on a subpar data provider can have serious consequences. Companies frequently innovate and diversify their product lines to stay competitive, making outdated data a real risk for those targeting specific industries or products.
Leadership changes are another common occurrence. Executives and key leaders often move between companies, retire, or are replaced, leading to shifts in company strategy and operations. These changes can render your data on key decision-makers obsolete, impacting your ability to connect with the right people.
The number of employees, facility sizes, and annual sales figures are also in constant flux. Companies grow, downsize, merge, or acquire new businesses, leading to significant changes in their firmographic profile. An outdated understanding of a company’s size, capabilities, or financial health can lead to missed opportunities or misaligned strategies.
If your data provider isn’t keeping up with these changes, your firmographic data could quickly become unreliable, leading to misinformed decisions and ineffective outreach. Regular updates and data validation are crucial to ensuring that your firmographic information is accurate and actionable, allowing you to maintain strong connections and make informed decisions in an ever-changing industrial landscape.
The consequences of inaccurate data are multifaceted and can severely undermine a company's bottom line. Sales teams working with outdated contact information are likely to waste time and resources pursuing leads that will never convert. Marketing campaigns based on incorrect data fail to reach their intended audience, squandering budgets and opportunities for engagement. For business development professionals, the reliability of contact data is crucial for establishing and maintaining relationships with manufacturers. Inaccurate data not only impedes these efforts but can also damage the company's reputation.
The financial implications are equally concerning. The cost of poor data quality averages $15 million per year for organizations, as estimated by Gartner. This figure encapsulates lost revenue opportunities, increased operational costs, and potential damage to brand reputation. Here are some key statistics on the financial implications of inaccurate contact data:
• $3.1 Trillion Annually: U.S. businesses lose approximately $3.1 trillion each year due to poor data quality (IBM).
• 15% Revenue Loss: On average, companies lose 15% of their revenue due to inaccurate data, which includes wasted marketing spend, resources, and staff time (Gartner).
• $9.7 Million Per Year: The average financial impact of poor data quality on organizations is $9.7 million annually (Gartner).
• 30% Revenue Impact: Multiple reports indicate that bad data costs businesses 30% or more of their revenue (Entrepreneur).
• Customer Service Costs: Misspelled customer names and incorrect contact information can increase staff time and reduce customer satisfaction, leading to higher costs in customer service.
• $180,000 Lost on Direct Mail Campaigns: The average company loses $180,000 per year on direct mail campaigns that never reach their intended destination due to inaccurate data (Lemonly).
• 550 Hours or $32,000 Lost: Businesses lose up to 550 hours or $32,000 per sales rep due to poor data quality (Discover.org).
See more stats in our infographi What Bad Data Costs & Why Good Data Matters
In the battle against data decay, choosing the right data provider can make all the difference. With so much at stake in the world of sales, marketing, and business development, having access to accurate and up-to-date information is essential.
IndustrySelect stands out as the only data provider in the industry that does not rely on web scraping or bots to harvest its data. Instead, it employs a dedicated research team of 80 professionals who verify and research each company profile firsthand. This meticulous approach ensures that the data you receive is not only accurate but also up-to-date, helping you stay ahead of data decay. See how we collect our data.
In an era where data can quickly become outdated, IndustrySelect’s commitment to human-verified information is invaluable. The research team continuously updates contact details, firmographic data, and other critical information, ensuring that you have the most reliable data at your fingertips. This level of accuracy is crucial for making informed business decisions and maintaining effective communication with key contacts.
In addition to contact information, IndustrySelect offers a wealth of firmographic data crucial for strategic decision-making. You can access detailed information on products manufactured, the number of employees, square footage of facilities, and annual sales figures. This comprehensive data allows you to gain a deeper understanding of the companies you are interested in, helping you identify potential partners, competitors, and market opportunities. See a sample profile.
IndustrySelect also provides advanced search and filtering capabilities, enabling you to tailor your data queries to specific criteria. Whether you are looking for companies of a certain size, in a particular location, or within a specific industry, IndustrySelect makes it easy to find the information you need quickly and efficiently.
By leveraging IndustrySelect, you can stay ahead of the curve with accurate and comprehensive data, empowering you to make the best business decisions and maintain a competitive edge in the industrial sector. Set up your free demo account today, loaded with 500 real company profiles so that you can test all the features of this powerful software.
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