Can You Really Eliminate Customer Database Decay?
August 8, 2016 10:35:53 AM | By Matt Benati
Customer database decay is a fact of life for B2B companies. Employees leave, get promoted, change names, emails and phone numbers. Maybe even a company itself changes hands, changing names, phone numbers and email addresses in the process.
In the blink of an eye, your database is full of inaccurate or dated info. It doesn’t matter what you’re selling or how interested your customers are, keeping up with dynamic contact information is virtually impossible.
Or is it?
The Rotten Apple Conundrum
We’ve referenced this infographic from ZoomInfo in the past because it’s a great snapshot of the customer database decay problem and the “rotten apples” spoiling your good intentions.
It tells us that:
30% of people change jobs annually
66% of people’s titles and/or job functions change annually
3% of people change phone numbers annually
37% of email addresses change annually
34% of companies change their name annually
That is a LOT of change going on in your customer database!
It goes on to reveal that businesses are well aware of the problem – in fact, as many as 94% of businesses suspect that their customer and prospect data are inaccurate, and as much as 50% of IT budgets are spent on data rehabilitation.
But here’s the silver lining. Organizations cite a direct correlation between good data and revenue. Businesses who had “clean” data enjoy roughly 25% higher conversions between the “inquiry” and “qualified lead” stages, and they went on to report a 66% boost in revenue. That’s truly significant!
Why Doesn’t Everyone Strive To Have Clean Data?
ZoomInfo reports that as many as 30% of organizations have no strategy for updating inaccurate or incomplete records. The challenge is the logistics behind keeping on top of every single lead. Many organizations resort to asking their sales teams to reach out to individual leads and obtain updated information. But sales reps need to be bringing in revenue, not data. Time spent on updating the database is time not spent making money.
So for the 70% of other businesses who are trying to actively maintain their databases, how do they do it?
- Data cleansing projects – while quarterly is the typical target, the tedious process gets bumped to annually for many organizations.
- List vendors – the problem is that many of these vendors trade contact info to some degree, so you’re likely not getting better data integrity with one vendor over another.
- Data cleansing services – pull data from a variety of online sources, like LinkedIn. In many cases, these services cross-reference the data from list vendors and together are a more effective solution than one or the other. They’re both pricey solutions, however; especially when used so frequently.
- Good old fashion calls, emails or direct mail – to solicit changes directly from leads and customers. The problem is that this manual process is slow and tedious and the data doesn’t stay fresh for long before something changes.
Basically, there is no efficient way to have a completely updated database because it’s too hard to keep up with the data!
The Solution Is A Continuous Database Cleansing Solution
Wouldn’t that be nice? Wouldn’t it also be nice if the updated data came directly from your own accounts and not a paid list vendor or cleansing service?
That’s exactly what LeadGnome does. When applied to your existing email marketing campaigns, the technology automatically mines both manual and auto-replies to your campaigns for valuable data called Account Based Intelligence (ABI).
From the hundreds or even thousands of reply emails your marketing department is drowning in – the Out of Office replies, the Left the Company replies, the Change of Title, Role and Email replies – comes a wealth of information about your leads and customers.
- A phone number and title when you previously only had an email address
- Notifications for change of email, phone or address
- A timing advantage over competitors when you learn of a trigger event — like a lead leaving the company and someone new replacing them
- A golden opportunity when a lead gets promoted from your user to your buyer
All of this — and more — can be found when you analyze the unstructured body of these reply emails – a place where marketing rarely has the manual resources to delve, but LeadGnome does.
BONUS – You Also Get Net New Leads On A Continual Basis
Not only does LeadGnome automatically cleanse and append your database every time you send a campaign email, it also mines reply emails for new contacts. Think of how commonplace it is for people to provide an alternate contact, influencer or colleague on an Out of Office reply. Voila, you have an instant new contact, referred directly from an existing lead.
Bottom line: the only way to maintain a clean database is to have a continual cleansing solution in place that is scalable. A marketing analyst might be able to keep up for a while, but eventually your database growth – and decay – is going to outpace him or her. Having an automated solution like LeadGnome in place enhances and updates existing contacts while also sourcing net new contacts directly from your active accounts.
Ready to see what LeadGnome can do for your database cleansing efforts? Get started with a free trial today!