Why is B2B Data So Valuable?

by | Jul 3, 2020 | Blog

Your CRM software is an essential tool for developing relationships and motivating sustainable growth. Tracking existing clients as well as potential customers in the pipeline is a vital role in your CRM. The data that is collected by the system and analysed for growth opportunities is part of the toolset that will help your business grow.

You need to understand customer trends and demands and provide personalized communication to get the attention of your audience. One of the most important functions of your CRM system is its ability to keep the information up to date. Redundant or outdated B2B data can waste your time and money.

Data Hygiene

Data hygiene refers to the maintenance of data, such as ensuring that it is clean, up-to-date and error-free. This includes expelling outdated data, duplicate records or improper import of different verticals (or fields) to ensure a smooth CRM experience. If your data is not properly maintained, it can cost the business. Inaccurate data, or data decay, is detrimental to your progress in all areas of business development, from marketing campaigns to product launches, customer relationships to staff retention.

To ensure that your data hygiene is maintained, you need to assess how frequently you need to perform a purge. While for some businesses this might be bi-monthly, for others it might be bi-annually. The accuracy of your data supports the effectiveness of your strategies. A high-quality CRM system should be taking care of purging data that is no longer of value automatically.

Data decay is a reality. People change jobs, they receive promotions, companies merge, businesses are acquired or fold. There’s a constant cycle of change which affects the quality of B2B data lists. For example, your contact in Company A, who is a decisionmaker and more than halfway down the funnel, quits their job. You continue to send information to Company A without knowing that your decisionmaker has left their role. You are pursuing a cold lead, wasting your time and their’s unwittingly.

Clean data can raise the chances of successful customer acquisition and lower churn rate. This also places you in higher regard within your industry. A company that can show it is organised and always chasing high-quality leads, and closing deals is well respected in business circles.

Data as a Tool

Your CRM system and the quality of your data are only tools for success, not a guarantee. You still need to establish strategies and analyse the data for ways in which you can make connections.

Quality data is important because:

  • Quality and targeted data mean that you can reach the right decision-makers for your B2B product.
  • Relevant verticals mean that you can personalize your message to the right contacts at the right time.
  • Up-to-date B2B data means that you can stay with the prospect during all stages of the customer journey.
  • Accurate and complete information on prospects in your CRM means that your sales and marketing can follow up with leads on a timely basis.

Having up-to-date and quality data leads to a streamlined process through which you can turn cold prospects into sales-qualified leads and achieve increased ROI for your business.

Your quality data can also help keep your sales and marketing teams working together as a cohesive unit. Often these two departments can work at cross purposes. Having the right data to inform strategies and keep targets on track means that your teams can accomplish their goals and do so together.

Your overall goal should be to grow your business. To do that, use your supportive data to underpin your strategies, reach clients and close deals.