The following is a drill-down on a portion of the Data Quality Bootcamp session that Inga Romanoff (Primary) and I conducted at the Marketing Nation Summit 2015. We'll provide more drill-downs in future blog posts.
According to a SiriusDecisions study, up to 25 percent of the data in the average B2B company includes critical data errors ranging from incorrect demographic data to a lack of current disposition1. And in our experience, B2C companies may have an even larger percentage of bad data (as high as 50%), especially if e-commerce is the primary revenue channel. This affects both the numerator and the denominator in the ROI calculation.
Bad data causes your effective lead acquisition cost to increase
For example a 250,000 lead database with an average cost of $50/lead has a total cost of acquisition of $12.5mm. However, if 25% of your leads are bad, your effective cost of acquisition is 33% higher and you fundamentally wasted over $3mm!
Bad data causes your revenue to decline
According to the same SiriusDecisions study, strong data organizations that actively manage their data quality have only 10 percent bad data and are realizing nearly 70 percent more revenue purely based on data quality. This is the result of simple funnel metrics – fewer good leads in results in fewer won opportunities at the end.
Bad data impacts your job performance
Finally, 36% of marketers say that data quality is the biggest obstacle to MA success2, which for Marketo users can be a career limiting event.
Inexpensively ensure clean data
The least expensive way to ensure clean data is at the point of data capture and here are a few tips on how Marketo can help you be a strong data quality organization.
There are many other tips that will help you be a strong data quality organization that we’ll share in future blog posts.
1 Sirius Decisions - The Impact of Bad Data on Demand Creation (11/25/08)
2 Ascend2 Marketing Automation Benchmark Survey, July 2014
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