Increase your revenue by 66% with Data Quality

I stumbled on this interesting article in destinationCRM.com. It covers research from SeriousDecisions about how best practices in Data Quality can boost revenue by 66%.  Best practice in Data Quality has earlier been proven to be a key to success when you implement MDM solutions.

I have tried to show the cost of poor Data Quality, and it is good to show the benefit of optimal Data Quality.

There are several key areas where superior data management can have discrete benefits, according to the report. These follow the SiriusDecisions Demand Creation Waterfall methodology:

  • From inquiry to marketing-qualified lead: It’s most cost-effective to manage data at this early stage, rather than let flawed information seep through the organization. A data strategy that solves conflicts at the source can lead to a 25 percent increase in converting inquiries to marketing-qualified leads.
  • From marketing-qualified lead to sales-accepted lead: Bad source data is compounded by the use of multiple databases and formats, leading to distrust of marketing’s work by sales. Unifying the data, whether into one database or by using technology for virtual integration, can lead to a 12.5 percent uplift in conversion rates to the next stage.
  • From sales-accepted lead to sales-qualified lead: Scoring becomes important at this stage, as the sales team goes to work on the leads it can use — and returns others to the marketing team for further nurturing. Clean data can reduce by 5 percent the time spent conducting the kind of additional research that precedes initial contact with a prospect.
  • From sales-qualified lead to close: The benefits seen between sales qualification and close magnify those accumulated during the previous stages, as salespeople continually update the status and disposition of the potential customers. “Given that the average field-marketing function spends no more than 10 percent of its budget in support of this final conversion, accurate data is a must for applying the right tools and resources to the right audience at the right stage of the buying cycle,” Block writes. A single system of record to keep marketing and sales on the same page — cultivated by timely updates by all involved parties — is critical.

The impact of these abstract concepts — the true value of data management — becomes quite clear as soon as real numbers are applied: From a prospect database of 100,000 names, an organization utilizing best practices will have 90,000 usable records versus a typical company’s 75,000; at every stage thereafter, the strong company has a larger pool of prospects with a higher probability of closing. In the end, SiriusDecisions can show 66 percent more revenue for the company with high-quality data management.

This shows me that the Data Quality Firewall and the new concepts I introduced in September 2008, is the best way to optimize the data. The earlier you detect and correct poor data, the higher your revenue will be.

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