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Data quality issues can have impacts across the business from finance and operations to sales and marketing. In the case of the latter, poor data quality can significantly impact the effectiveness of activities to acquire and retain customers, from campaign targeting, through lead qualification to opportunity conversion. Quantifying these issues and highlighting how they can be used to justify investment in data quality, this presentation to the joint BCS/DAMA June 2010 meeting seeks to bring to live the importance of data quality at the commercial end of the business.
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BCS DMSG/DAMA
Does Data Quality matter?View from the business
Simon DanielsDirector, Marketing Operations Consulting
Percassity Marketing Data Solutions
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About me Specialist in business marketing data strategy
and marketing operations Experience spanning the information and
communication technology sector, working across Europe and North America
Roles at Apple, T-Mobile, Gartner and Progress Software
Co-founder of marketing operations consultancy Percassity Solutions
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This is the plan…
Context Sales and Marketing data The Waterfall Business case and metrics Data quality in a 2.0 world
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Data quality across organisations
Finance Operations Logistics Human Resources Sales and Marketing
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Marketing data
Prospect and customer data in the average B2B organisation typically doubles every 12 to 18 months
Between 10% and 25% of customer and prospect records include critical data errors
Data deteriorates at anything from 3% per month (Gartner) to 75% per year (Brian Carroll)
Sou
rce:
Siriu
sDecisions.
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Key dimensions for Sales & Marketing
Email address
validation
Address Standardisation
=De-duplicationand matching
✔Consistency
OCompleteness
Compliancy
Recency
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Strategic shift?
“We’re seeing a strategic shift in approach in strong
organizations, from one of data cleansing (a project with a set
completion date) to data maintenance (ongoing policies
and procedures to maintain data quality)”
SiriusDecisions
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Off-premises data quality deployment
Off-premises deployments of data quality tools have doubled compared to 2008 Nearly 17% of tool deployments (12% hosted,
single-tenant, 5% in a SaaS model)
Gartner
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The demand waterfall
ResponseResponseResponseResponse
Marketing Marketing Qualified LeadQualified Lead
Marketing Marketing Qualified LeadQualified Lead
Sales Sales Accepted LeadAccepted LeadSales Sales Accepted LeadAccepted Lead
OpportunityOpportunityOpportunityOpportunity
Win/LossWin/LossWin/LossWin/Loss
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Impacts on the Demand Waterfall
Justification for investing in data quality is evident in the differences between organisations with average processes to those with a better approach
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Impacts on the Demand Waterfall
Organisations that have an early-phase data strategy in place can expect a roughly 25 percent uplift in conversion rates between the inquiry and marketing qualified lead stages Data capture including web forms Contact list management Campaign selections
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“89% of Best-in-Class firms reported positive performance in the time necessary in preparing customer data”
Source: Aberdeen Group, “Customer Data Quality: Roadmap for Growth and Profitability”, June 2007
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Impacts on the Demand Waterfall
Lack of quality hurts lead credibility at this first key handoff from marketing to sales
Improved unification of sales and marketing databases can contribute to a conversion stage increase of up to 12.5 percent
Lead scoring accuracy will also be impacted
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Impacts on the Demand Waterfall
Invalid or erroneous lead information places a burden on Sales to rectify before actioning new opportunities
Up to a 5 percent savings in Sales time can be achieved with clean data
Sou
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Siriu
sDecisions.
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Cost of bad dataS
ource
: S
iriusD
ecisions.
Nearly 70% uplift!
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Making the (business) case
Lead quality/prospect conversion Legal and best practice compliancy Campaign production and targeting Sales time utilisation IT resource
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Metrics
Compare the number of names and the net percent of total database added each month to the number of contacts lost or no longer usable
Determine which market segments and which roles are under-represented and/or incomplete, and set priorities for improvement
Update at least quarterly to ensure short-term effects and current requirements are visible
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Usable data
5.5m
3m
• Opt-out• Invalid• Incomplete• Old
UK business publishing company
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Data quality in a 2.0 world
The step change to 2.0 Bottom Up as well as Top Down Perpetual Beta - release early and release often Focus on The Long Tail Dynamic Self-Organising Communities Mass Peer Publishing & Review Empower the impassioned
Achieve data quality by involving everyone who touches and uses data
Users care passionately about data when it's part of what they do
Only by seeing the true state of the data can users take responsibility
Allow “Fitness for Purpose” standards to emerge
Bottom Up & Top Down Perpetual Beta The Long Tail Dynamic Self-Organising Communities
Mass Peer Publishing & Review
Empower the impassioned
Gary Palmer, Information Alchemy
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What it all means
Sales and Marketing are affected by data quality issues just life everyone else
Poor data quality can significantly impact the effectiveness of activities to acquire and retain customers
Use Web 2.0 thinking to engage business users to address the issues
No shortage of opportunities to build the business case
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Acknowledgements
Simon [email protected]@mktginsightguy © Simon Daniels 2010
BCS DMSG/DAMA
Does Data Quality matter?View from the business
