Why Effective Demand Generation Starts and Ends with Good Data
A recent post on the ReachForce blog discussed the major shift marketers have recently undergone to focus more on clients throughout the entirety of the customer lifecycle.
This broadened scope, aptly known as demand generation, may be the future of marketing for most B2B companies, but there is one thing that has not changed in the age of digital marketing: the need for clean, accurate customer data.
Data quality can make or break the success of your marketing strategy.
According to Sirius Decisions, the average B2B database is 25 percent inaccurate and 60 percent of company databases have a health score of “unreliable.”
The impact of poor data reverberates throughout your organization and ultimately makes it nearly impossible for you to effectively do your job as a demand generation marketer.
This post highlights five ways clean data can positively impact your marketing strategy. If your team is suffering in any of the following areas, take a look at your data cleanliness as a possible culprit; you will be surprised to see the impact good customer data can have on your campaigns.
First, What Exactly is “Good Data”?
You have likely encountered this term before (even on this blog perhaps), but just to be sure you are familiar, here are the four components of good data:
- Unify. With data coming in across any number of different channels, it is important to bring everything together to reduce duplicates and ensure your contacts have as many contact details as possible.
- Clean. Scrubbing your database of duplicates, incorrect information, and false contacts will have a huge influence on the success of your campaign.
- Enrich. Here is where a great data management solution – like ReachForce – can empower both your marketing and sales teams. Filling in the gaps where key information is missing improves campaign success as well as sales prospecting.
- Activate. Give your people all the information, albeit demographic, behavioral and psychological, that they need to improve conversion rates.
Now, let’s take a look at the impact good data can have on five key areas of your marketing strategy.
#1. Response Rates
Naturally, clean, enriched data means more people actually seeing your marketing campaign. If you are creating quality content, good data will naturally lead to higher responses rates from your target audience.
This can be especially true if your data management system accurately connects contact details from across channels. Sending duplicate messages to the same contact makes your business look unprofessional and can ultimately lead to a high number of unsubscribes or, worse, your company’s ISP getting blacklisted.
The more accurate your data, the better you are able to refine your customer segments for better targeting. Enriched data allows marketers to split leads up by location, company size, or industry, but also by more refined details like content clicks or job title.
A recent study shows 94 percent of businesses choose vendors based on the vendor’s understanding of their business and needs. You are never going to demonstrate that level of personalization without refined segments; you are never going to get refined segments without good data.
#3. Multiple Follow-Up Methods for Sales
Demand generation is about a lot more than generating leads, but at the end of the day, lead generation remains a central focus for most marketers. That is because ROI is often tied to revenue, which is ultimately tied to the sales team’s ability to convert inbound leads to customers.
With that in mind, one of the goals of any successful marketer should be enabling your sales counterparts to quickly and efficiently make contact with the leads you deliver. One simple way of doing that is providing multiple channels to the rep.
Think about it. If your sales team has an email address, phone number, and social media accounts for the majority of the leads you deliver, there is no excuse for not getting in touch. Only good data can make that happen.
#4. Lead Scoring
Here is another way good data can strengthen the partnership with sales. Lead scoring should always be a collaborative effort between sales and marketing. Sales should dictate what qualifies as a “hot lead” and marketing should refine the criteria to target that audience in their campaigns.
Ultimately, however, leads that would otherwise score high will likely be tossed aside if the data quality is poor. After all, you might have a key decision-maker at an ideal company checking out your website, but if you have no way to contact him or her, what good is the information?
#5. Return on Investment
This should be the holy grail for any demand generation marketer. A successful demand gen campaign is not measured in clicks or leads delivered; it is measured in revenue produced. Ultimately, if you want to produce more revenue, each of the areas discussed in this article can contribute to making that happen.
Higher response rates mean more leads in the funnel. Better segmentation improves lead quality. Lead scoring and multi-channel contacts mean quicker and more accurate follow-up from the sales team. All of which together likely means higher revenue from your marketing strategy.
ReachForce helps marketers increase revenue contribution by solving some of their toughest data management problems. We understand the challenges of results-driven marketers and provide solutions to make initiatives like marketing automation, personalization, and predictive marketing better. Whether you have an acute pain to solve today or prefer to grow your capabilities over time, ReachForce can unify, clean, and enrich prospect and customer lifecycle data in your business, and do it at your own pace.