Why Cheap Data is Actually Really Expensive
When choosing a data vendor or service it’s easy to fall into the trap of looking at the acquisition cost of that data versus the real cost.
The temptation to buy data at pennies per contact – especially when you have limited resources – can be overwhelming.
We’d like you to reevaluate this practice, and refrain.
The truth is that cheap data is actually very expensive. We’re aware that cost can be the ultimate factor in a decision, but take a moment to think about how a bigger, upfront investment in good data can actually save you exponential amounts of money in the not-so-distant future.
Among dozens of other studies, Eloqua – a leading marketing automation firm – found that after a record has gone through the marketing and sales cycle that a bad record that originally cost $1.00 ends up costing $11.50! Suddenly that cheap data doesn’t look so cheap anymore.
Imagine if you bought 10,000 contacts for a sales and marketing campaign and you spent $1.00 per contact and to be generous we’ll say 25% of that information was bad. Your $10,000 investment just became a $36,250 investment. More than likely you could have spent less than $36,250 in an upfront investment in good data, and saved your team the time and energy of sifting through lists of subpar data.
I have this conversation with marketers all the time. I find myself explaining to them the downside to cheap data– if you’re thinking about buying a list (which, truth be told, I have done before); you’re better off just burning your money. It may sound dramatic, but it’s true. By the time you’re done sifting through a junk list and running down leads of low quality, non-decision makers you are undoubtedly going to end up wasting more money than the acquisition cost of that list. Your investment, and your relationship with your sales team, has just become a loss.
Invest in Clean, Good Data
Brian Carroll of MarketingSherpa says it best: “The expense of a lead is not just the lead itself but it’s the amount of time it’s going to take your sales, inside sales team or channel partners to engage that lead. It’s not about the cost of the data it’s about the effectiveness of the data you are giving your team to optimize their time.”
Guess what MarketingSherpa suggests as a solution to combat the bad data problem? Making sure that you are constantly updating the contacts and that you clean the list with a human-touch to all the contacts before you start calling or emailing the contacts on the list. Does that sound familiar?
At DiscoverOrg we have a team of 85+ Research Analysts who spend all day, every day calling and updating IT Contacts at your targeted accounts and adding relevant, deep intelligence to that 411 data. In addition to having quality data at your fingertips, we make it easy for you to use. Our new Salesforce.com 3.0 native app refreshes when we refresh…seamlessly. We’re evolving our data constantly- there’s no reason you shouldn’t have immediate access to it. An investment in good data is a quality investment in assurance that you won’t be spending your time weeding out the quality data from the useless data.
It’s time to stop wasting money on bad data. Save money, buy good data.