Data has become the lifeblood of any business in this modern B2B ecosystem. It plays an essential role in businesses making effective decisions, increasing operational effectiveness, and spurring growth. With the use of accurate and up-to-date contact information, you and your team can reach out and foster strong relations with their target audience. It also provides you a competitive edge in your industry allowing revenue growth and ensuring long-term success.
In a practical scenario, such data can turn stale and junk in the blink of an eye and it might cause a hurdle to your business hence, data cleansing and enrichment is a solution.
Why do databases need cleansing?
- In the dynamic world of B2B industries, there are a lot of changes that occur every moment. Mergers, acquisitions, new offices, government norms, email conventions, etc. keep changing.
- Some researchers state that over the span of one year, 30% of B2B data is projected to be out of date. This is a huge number considering the number of resources wasted to reach the 30% non-existent group of people
- According to a survey, people change jobs every 2.73 years, or approximately every two years and nine months and hence in a fast-moving ecosystem, data is expected to decay at a tremendous rate.
- These problems can cost you a hefty sum and waste your resources like time, money, and effort, therefore the solution to overcome these issues is investing in data cleansing and data enrichment.
But most importantly, Data from sources like websites, sales CRM, webinars, events, etc. are incomplete in most situations and to make it useful, enriching it with new data points is key. When the missing fields are filled into the data set through data enrichment, every lead brings an equal chance to create opportunities and conversion. Thus the most important function of this process is generating leads and converting them to opportunities.
Benefits of having clean data
Better Accuracy and quality:
Clean data ensure that contact information is up to date, accurate, and complete, lowering the risk of messages being delivered to outdated or incorrect addresses and therefore maintaining the quality of data.
Clean data is an essential tool that ensures the proper usage of money in your marketing efforts. If you are able to reach your prospects seamlessly and close deals faster, it will eventually increase your revenue.
Connecting to the right person:
A clean database must contain no faulty contact email or phone number; it becomes a crucial aspect for your business to foster connections to the correction prospect or lead.
You can gain precise insights and adjust your sales pitch to each unique prospect through a clean database.
Improve Sales Effectiveness:
Clean data is a powerful tool to provide more value in your sales process. It streamlines sales processes by reducing duplicates and incorrect information, saving time, and reducing manual effort. Complete lead information improves the process of lead qualification. You can verify if the lead is an ideal prospect or buyer.
Clean data reduces the danger of data breaches, assuring the security of critical information.
What is Data Cleansing?
In simple words, Data cleansing is the process of deleting, updating, and correcting erroneous or incorrect data from a database. It ensures that the quality of your data remains top-notch.
In other words, Data cleansing is a process that gathers inaccurate or incomplete information and then corrects the data to improve its quality. According to a Forbes article, poor data quality costs organizations 12% of their overall revenue and, in turn, costs the US economy itself approximately $3.1 trillion annually. These numbers are huge in themselves and hence data cleansing is an important topic to discuss.
What is Data Enrichment?
Data enrichment refers to the process of enhancing and refining your current database by integrating raw data from available sources and the addition of new data sets, or data points. This method is also called Data appending. Using data enrichment methods, you can improve your lead quality, create a personalized messaging strategy, provide better customer engagement, and then eventually increase the chance to close more deals.
It has an infinite depth of insights to deliver more reliable decisions, unlike standard data. There are numerous types of enrichment, a few of them include:
- Demographics: Age, Marital Status, Gender, Education
- Psychographics: Needs, Wants, Desires, Behaviors
- Geographics: Country, State, City, Time Zone
- Professional Data: Company Size, Job Position
Data Cleansing vs Data Enrichment
While both the practices’ ultimate goal is to improve the quality of your data and maintain the hygiene of your database, both practices have a major difference in their approach.
Data cleansing is the process of removing and refreshing stale, inaccurate, and incorrect data, Data enrichment refers to adding new data points to your existing database. Even though both are important for an organization to increase its sales effectiveness and create a better customer experience, they have fundamental differences depending on the needs and wants of your organization.
What’s the need for enriching data
Enriched data provides extra layers of information to your existing database which has a lot of benefits from better personalization to customer segmentation eventually allowing you to generate more sales opportunities and drive sales growth. Enriched data can be the most valuable asset that can reduce the risk of sending irrelevant or incorrect communications, improve lead qualification, and increase the likelihood of successful conversions.
The benefits of enriched data include:
Deeper insights for better targeting: Enriched data gives you additional information about your target audiences, such as firm size, industry, and purchasing habits, allowing your marketing and sales team to segment their target market and build more targeted and effective campaigns.
Personalized touch: With the use of enriched data, your marketing team can create personalized messaging strategies for your target prospects that would increase the chance of closing the deal, or a successful conversion.
Improving Customer Experience: As enriched data ensures personalized touch to your prospects or customers; it can be used to tailor a strategy that would emphasize on specific needs and wants of that person, leading to an engaging experience for that customer.
Saving resources: Your company can avoid wasting time and resources on unproductive marketing efforts, reduce the risk of security problems, and make informed decisions based on enriched data by having accurate and full information.
Uncover your ideal customer profile: When companies use data enrichment they get the full picture of their customers. Knowing the common attributes between customers that consistently renew and upgrade can help you to identify, understand, and activate your ideal customer profile (ICP). Building a data-driven ICP can lead to deeper insights into your customers. Instead of wasting time and money on prospects outside your ICP that are likely to churn, sales and marketing teams can focus their investment on high-fit prospects that will make great customers.
The benefits of data enrichment
The data enrichment process has many benefits for B2B businesses but the biggest impact can be seen in revenue operations, website conversions, and customer acquisition.
With data enrichment as the foundation of your tech stack, your revenue operations programs will run more efficiently. For example, data enrichment can improve your lead scoring and routing process by providing additional contextual data to leads so they can be assigned accurately. Every new lead that enters your CRM now has the contextual information sellers need to deliver a superior buyer experience.
Data enrichment can help to drive increased website conversions by improving the user experience. Simple changes like leveraging enrichment to shorten your forms can improve your form conversion rate. Data enrichment can also power things like visitor insights or website personalization. When you know who your visitors are you can create customized experiences that make the decision-making process easier.
Data enrichment can also help to improve your customer acquisition efforts. Data enrichment improves your ability to create audience segments. The more attributes you have, the more granular you can get with your ad targeting. Creating hyper-specific segments based on common demographic and firmographic attributes allows you to craft personalized messaging with the confidence that your targeted marketing campaigns will reach the right audience.
Common types of data enrichment attributes or data points:
There are over 100 firmographic and demographic attributes from a combination of first and third-party data sources we use to enrich company and contact data.
- Firmographic data: Company information, like size, type, industry, sub-industry, or vertical, annual revenue, etc. indicating whether the company is a good fit for your product or service, Technologies used
- Demographic data: Information about an employee who works at that company, such as their name, geographic data like location, role, Social media accounts, and purchasing power, indicating whether they’re the right person to be marketing and speaking to.
How do you maintain data hygiene?
In layman’s terms, data hygiene is the practice to keep your CRM data clean and error-free. It is a practice used by individuals or organizations to maintain the consistency, accuracy, and completeness of the data. It entails cleaning, updating, and validating data on a regular basis to ensure that it is accurate and up to date.
Maintaining data hygiene is not an easy task, as it requires regular governance over your data which might be tedious. According to studies, poor CRM prospect data costs sales departments roughly 550 hours of selling time per year which acts as a silent killer for them. Here are some of the best practices that might help you maintain data hygiene:
Regular cleaning of your CRM data will help you remove duplicate, unwanted, outdated, and inaccurate data. This will help you drive better quality and accuracy in your campaigns.
The process of ensuring that data is accurate and complete is known as data validation. This can be accomplished through manual or automatic checks or a combination of the two. You may limit the chance of errors, miscommunication, and wasted resources by validating your data.
Data Enrichment and Appending:
Enriching your CRM database is beneficial to tailor personalized messaging campaigns and hyper-targeting your audience. Adding additional data points to your existing database helps maintain the hygiene of your data eventually driving a higher ROI.
Data Backup and Recovery:
Creating a backup and recovery strategy for your data can be a wise decision in times of unexpected circumstances like cyber-attacks or hardware failure. Such a strategy can ensure that your valuable data is protected in times of emergency.
The uniformity of your data is one of the most crucial aspects of data hygiene. Data standardization can aid you in the prevention of errors and inconsistencies, resulting in higher data quality and efficiency.
Mistakes to avoid in CRM Data management
Your CRM data can play a vital role in the development and growth of your organization. Many firms may not sustain themselves for long if they do not have a robust data management plan in place.
Failing to clean or update data regularly
Just like you clean and wash regularly to stay hygienic, your CRM database requires regular cleaning to stay fresh and hygienic. Neglecting to cleanse and update your data might result in inaccurate and outdated records, eventually causing a hurdle for your campaign. This mistake can be easily avoided by performing regular checks for duplicates and erroneous information and replacing or removing the entry from the database.
Failing to implement a data protection plan
Neglecting to protect your customer data from cyber-attacks or breaches can result in sensitive information being compromised, harming your customers’ trust and the company’s reputation. To avoid this error, implement regular backups and recoveries and invest in cyber-security.
Ignoring to enrich your data
Failing to add multiple data points such as job title, company size, preferences, demographics, etc. can result in a generalized approach to client involvement that ignores the demands and preferences of individual customers. This common mistake can cause an obstacle in reaching an individual prospect with a personalized message, which would decrease the chances of sales. It can be avoided by implementing a data enrichment strategy or using tools or software to do your work for you.
The Solution – Ascentrik Research
Ascentrik Research offers custom B2B data research that ensures delivering customized, high-quality data and insights to top businesses around the world. With an accuracy rate of 100%, we have been an outsourced partner to many reputed Fortune 500 companies.
As the majority of these tools enrich their data on a monthly or quarterly basis reducing the accuracy to a large extent and therefore, we make sure that your data gets enriched in real-time. Our data is not stored in databases, hence reducing the chances of junk or stale data, and is built from scratch for each client.