How Much Does Bad Prospect Data Really Cost?
Accurate prospect data makes the job of an inside sales team much easier.. When it’s not up-to-date or correct, however, that same data can cost businesses drastically in both time and money.
Research shows that sales reps spend roughly 65% of their day on non-revenue generating activities like digging for data, scoring leads, and managing technology. Put another way, those sales reps are only spending 35% of their time actually selling.
Now, consider that when sales reps make calls:
- 30% are non-responsive
- 30% include incorrect information
- 30% involve connecting with the wrong person
That means there’s only a 10% chance of connecting with the right person at the right time – let alone converting them into a customer.
Given these stats, it’s easy to see why so many business sales objectives fall short of their expected goals. Unfortunately, the unwelcome news doesn’t end there.
Bad Prospect Data Is More Expensive Than Most Businesses Realize
Across all industries, bad intel costs American companies $3 trillion every year. It’s a critical problem plaguing every business’ marketing and sales strategies.
How can a business design effective personalization strategies or make successful sales calls if their prospect data is inaccurate? They can’t, and that’s why bad data causes 40% of all business goals to fail and why only 20% of companies are running an effective personalization strategy at scale.
How serious is the problem? Consider that up to 65% of businesses are making decisions based on a prospect horizon derived from inaccurate information, and from prospect data that’s up to 40% incorrect. It’s also estimated that 25% of all databases have significant fundamental errors.
And once bad data enters a system, the costs just keep piling up.
For example, it only costs $1 to correct the error before it’s entered, $10 to find and scrub the problem later, and a whopping $100 if the bad data just sits there.
Prospect Data Monitoring Is a Continuous Job
The truth is that 40% of leads contain invalid or incomplete data from the get-go and 30% of all data goes bad each year. In other words, generously speaking, only 30% of the information in the average business database is accurate – and that percentage is also in a constant state of decay.
Duplicate data is the biggest offender, making up 15% of all mistakes upon entry. Meanwhile, 66% of job titles and functions, 37% of email addresses, and 40% of phone numbers change annually.
Data monitoring isn’t a one-off solution, and it isn’t something a business does a few times each year to get the books in order before running a fresh marketing campaign.
Instead, a routine data monitoring solution is vital for business growth and success. Just imagine what an average business could accomplish if 40% of its objectives didn’t go down the drain due to bad intel. Ideally, having a team dedicated to monitoring new and existing lead data is essential though, understandably, investing in a governance team in-house might not be economically viable for every company. However, there are alternative solutions in the marketplace that may be worth investigating.
Prospect Data Monitoring with 99% Accuracy
Flobile provides an AI-powered prospect data monitoring solution developed by data scientists.
The innovative system starts by checking the validity of a current prospect database, looking for costly errors, and updating information as needed with up to 99% accuracy. Once a new prospect enters the system, the data is verified and corrected to ensure database accuracy.
Inside sales data is updated continuously and CRM data is reviewed every 60 days with automatically generated accuracy reports.
The result? 70% more sales calls and a 30% better follow-up rate.
