What is Data Decay?
Data decay refers to the gradual deterioration of data quality within a database. This can be especially damaging in sales and marketing databases. Sales and marketing efforts require accurate contact information for leads, along with up-to-date information on their organisations, employees, branch locations, and so on. When data decays from inaccuracies, outdated information, or aging out, B2B companies can see a decline in their overall performance, as well as in sales and marketing.
A simple example of perfectly good data decaying over time might be a website that includes information about movies that are currently playing in local cinemas and their showtimes. When those showtimes change without any updates being made to the database, the website will feature incorrect or outdated information.
Apply this to your own CRM and it’s not hard to see how data decay could be negatively impacting your efforts to close new deals. Every time an individual changes jobs, gains promotion, switches industries and updates contact details, the data in your CRM decays. This can present a big problem, especially for those of us with large databases. According to the ONS, every year 9% of people change jobs – that adds up to a 27% workforce shift every 3 years. Even for a modest-sized CRM with 5,000 entries will have 1,350 erroneous entries every 3 years.
No wonder then, that a recent study shows that data quality remains among companies’ top priorities. Among the companies that decreased their investment in data: 35% saw their overall performance decline; 75% saw a decline in sales and marketing performance; and 94% of those companies said that their sales and marketing performance improved after increasing their investment in data.
How can I avoid data decay in my CRM?
The simple answer is – stay on top of updating your database! This can be done manually, although that is not advised. Updating 5,000 records, even at a constant pace of 5 minutes per entry, would take 17 days without a break! Also, manual data entry is more susceptible to mistakes. Luckily, database enrichment can now be automated. Here at Lix, we offer a product called ReTrace, that plugs into your CRM and updates and enriches the entries with fresh B2B data. If you’re interested in learning more, get in touch.
There are some added bonuses to keeping your data fresh, too. An individual switching roles or being promoted can be a great opportunity to close a new deal. A prospect that knows you and your product, now in a buying-role at a new firm is a hot lead! Retrace CRM enrichment is not just about refreshing what you have, it also uncovers the potential deals hidden in your data.
It’s important to keep track of your data so that it doesn’t become stale, or corrupted over time. This will ensure that your information remains accurate and up-to-date and leads are never lost. If you’re looking for some help with this task or another project, please reach out! We’d be happy to assist you with any questions or concerns related to data decay.