You invest a lot of time and money to generate leads – are they providing the value you need? In today’s digitally driven world, businesses thrive on data. Among the myriad types of data crucial to a company’s success, lead data holds a special significance. Leads are the lifeblood of sales and marketing efforts, representing potential customers interested in a product or service. However, the mere accumulation of leads isn’t enough; it’s important to be selective on what data points to capture and keep them current.
First, it is important to choose the data points that will provide insights. Having a lot of fields in your CRM that are not useful will make your team inefficient. Having fields that are inconsistently populated is ineffective. Select data points that allow you to segment your data, make qualification decisions, or fuel your downstream sales/customer success teams. Don’t collect data for data’s sake – every data element chosen is a commitment to maintain it.
Once the curated data points are determined, it is critical to maintain that data for the following reasons:
The quality and timeliness of lead data directly impact conversion rates. Outdated or inaccurate information can lead to wasted efforts targeting the wrong prospects or missing out on potential opportunities. By ensuring lead data is up-to-date, businesses can effectively reach out to prospects with relevant and timely offers, increasing the likelihood of conversion. If you aren’t seeing a 39% lead to MQL conversion rate (the industry average for B2B SaaS*), consider that your data quality isn’t high enough to drive optimal conversion.
Maintaining accurate lead data streamlines sales and marketing processes. With the right information at their fingertips, sales teams can prioritize leads as well as effectively engage them in personalized cadences tailored to their situation and preferences. Similarly, marketers can shape their campaigns to resonate with specific audience segments, resulting in higher engagement and ROI.
By maintaining accurate lead data, businesses show their dedication to seamless experiences. This includes addressing customers by their correct names and offering personalized recommendations based on preferences. Trust and credibility, vital for long-term relationships, are fostered through accurate lead data. Today’s consumers demand personalized interactions, making outdated or incorrect data detrimental. High-quality lead data enables businesses to provide personalized experiences, boosting customer satisfaction and loyalty. We’ve all experienced the missteps by companies marketing to us in error. In the last week alone a political candidate asked me (by the wrong name) to vote for them, and as a technology professional, I was invited to apply for a Speech Language Pathologist position. Of course, my opinion of these candidates/companies is highly diminished by these experiences.
Resources are finite, and allocating them effectively is key to maximizing returns. Investing in lead generation efforts without ensuring the accuracy and currency of lead data is akin to pouring water into a leaky bucket. I see this happen all the time – companies apply valuable sales resources to chase leads that are garbage because of missing data quality efforts. By prioritizing data quality, businesses can make informed decisions about resource allocation, focusing their efforts where they are most likely to yield results (prospects that match the Ideal Customer Profile (ICP) and are acting with buying intent).
As businesses scale, the volume of lead data grows exponentially. Without robust systems in place to maintain data quality, scaling efforts can quickly become untenable. By implementing processes and technologies to ensure data accuracy and currency from the outset, businesses can facilitate growth without compromising on the quality of their leads or customer experiences. This can be a fairly simple manual process (when companies are smaller) to automated and augmented solutions (as companies grow).
In an era of stringent data protection regulations, such as HIPAA, GDPR, and CCPA, maintaining accurate lead data is not just good practice; it’s a legal requirement. Non-compliance can result in hefty fines and reputational damage. No company wants to see their domain on a blacklist or with email going to spam. By keeping lead data current and of high quality, businesses mitigate the risk of regulatory violations and safeguard their reputation.
The importance of keeping lead data current and of high quality cannot be overstated. From enhancing conversion rates and improving sales and marketing efficiency to building trust and credibility with customers, the benefits are manifold. By prioritizing data quality as a strategic imperative, businesses can unlock the full potential of their lead data and drive sustainable growth in today’s competitive landscape.
* “Lead-to-MQL Conversion Rate Benchmarks by Industry & Channel“ by Evan Bailyn
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