Does data quality matter? View from the business

BCS DMSG/DAMA Does Data Quality matter? View from the business Simon Daniels Director, Marketing Operations Consulting Percassity Marketing Data Solutions

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

This is the plan…
Context
Sales and Marketing data
The Waterfall
Business case and metrics
Data quality in a 2.0 world

Data quality across organisations
Finance
Operations
Logistics
Human Resources
Sales and Marketing

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)
Source: SiriusDecisions.

Key dimensions for Sales & Marketing = De-duplication and matching ✔ Consistency O Completeness Email address validation Address Standardisation Compliancy Recency

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

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

The demand waterfall Response Marketing Qualified Lead Sales Accepted Lead Opportunity Win/Loss

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

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
Source: SiriusDecisions. “ 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

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

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

Cost of bad data Source: SiriusDecisions. Nearly 70% uplift!

Making the (business) case
Lead quality/prospect conversion
Legal and best practice compliancy
Campaign production and targeting
Sales time utilisation
IT resource

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

Usable data 5.5m 3m
Opt-out
Invalid
Incomplete
Old
UK business publishing company

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

Gary Palmer , Information Alchemy 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 

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

Acknowledgements

Simon Daniels [email_address] @mktginsightguy © Simon Daniels 2010 BCS DMSG/DAMA Does Data Quality matter? View from the business

Does data quality matter? View from the business

by Percassity Solutions on Jun 11, 2010

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