Is your data poisioning your business?

Is your data poisioning your business?

The Direct Marketing Commission (DMC) Annual Report 2011/12 showed that in the year 2011/ 2012 more than three-quarters of the complaints they received were related to data, privacy and quality.

Most of us believe that Business to Consumer (B2C) marketers are mostly to blame for this, but the truth is that many Business to Business (B2B) marketers are just as guilty.

Although this is not proven scientifically, based upon the evidence of the data I have processed over the past 6 months, I believe that over 90% of B2B data held by small companies is unacceptably inaccurate.

What I mean by “unacceptably inaccurate” is that there is more than 20% of their database (often their customer database) that has the wrong company name or contact information, wrong address, wrong telephone number, the organisation is no longer in business, details such as contact information, phone number, address etc are missing. I haven’t even mentioned email addresses yet…

Commercial B2B databases consider that 6% is the maximum reasonable level of returns/goneaways for their data. This dirty data threshold not surprisingly rises to 25% bounce backs being acceptable when email addresses are involved. 

The truth is that most small businesses are not even meeting these figures on their client data, let alone any prospect data they may have.

Why is this toxic for your small business?

1. Using 'dirty' data to prospect for new business is like taking poison and wondering why you never get better. Prospecting is key to the survival of business in this day and age. Your largest customer could fail tomorrow and there is never a guarantee of payment from even your best customer. So we all need to prospect for new customers to spread our business risk but we're all guilty of using what ever data we can. 
2. If you never communicate with your existing customers (which are proven to be your best prospect base), they'll never know what else they can buy from you.
3. You can and will waste up to 50% of the costs on your next direct mail from mail that is not deliverable. If like many small businesses you choose the Quantity of data over the Quality, you're taking an unnecessary gamble? 
4. You start the downward spiral of disillusionment with marketing when you don’t get any response to your mass mailings and continue to do what you have always done.

5 ways to avoid your data becoming Toxic

1.  Build one single face of the customer that everyone in your organisation uses. Accounts, sales, production, credit control, marketing, customer relations etc. These days it is essential that you
2. Gain permission! Just because you have someones email address does not mean that you can contact them. Permission marketing is an increasingly important factor with all data. People want to have the choice how to hear from you and even whether they hear from you in the future.
3. On a monthly basis take 10% of your database and call the contact you have listed. Check all their details are correct and update any new details.
4. Keep adding new data to your database: Every month look at your top 10 most profitable customers that month and find their main five competitors. Add their details to your prospect database - gaining their permission first of course!
5. 10 before 10 on a daily basis. Phil Heskith talks about calling 10 customers before 10 am. I love this idea for there is no better way to keep in touch with your customers and what their needs are. Plus if someone has moved on then you can update your database quickly.

Nicki Bury from Haybury Marketing is an expert in Business to Business Direct marketing. If you would like some advice on data and how to manage permissions within your business or to undertake an audit on the quality of your data, email info@hayburymarketing.com or visit www.hayburymarketing.com

Image courtesy of Stuart Miles / FreeDigitalPhotos.net