Data Quality in Marketing
Forbes published two articles online this month that made our ears perk up. First, we should mention that the fact a business and entrepreneur-focused publication like Forbes is so frequently mentioning data quality should be an indication of the impending boom in the data quality industry. But, secondly, it’s also a trend on Forbes and in other publications to see data, analytics, and business intelligence get more and more proverbial “ink”. To summarize, the age of the data-driven business isn't just here, it’s quickly growing. And there’s seemingly no better way to explore the data quality challenge as in marketing metrics.
Data Quality in Marketing is Suspect - At Best
The first article to catch my attention was authored by Auren Hoffman, who does a wonderful job discussing the data quality issues marketing associates face. Hoffman points out that most marketing data, including internet data, mobile data and even mailing lists is less than 20% accurate. Why? Because even at that low level of data integrity, your direct mail campaign still has the remote possibility of being successful. Settling for a small percentage of, at best 20%, of your ideal audience was deemed good enough, as accessing and cleaning the rest of the data set was considered too costly or time consuming.
But as you can expect, 20% data accuracy isn’t an ideal bet for most modern marketing teams. The company who can find a way to get a 2% response rate on a 50% accurate list is in position to have an exponentially more successful marketing campaign. As a result, data quality is quickly becoming viewed a competitive advantage and the best way to improve marketing performance and to improve ROI.
Data Quality Delivers ROI in Marketing
After Auren’s post, Larry Myler authored an article that shows the important benefits of investing in data quality in marketing. Myler sites a report by Forrester that 10% increase in data accessibility will result in a $65 million increase in net income for the average Fortune 1000 business.
With evidence supporting the need for better data quality and accessibility acknowledged and proven, many marketing execs still find it difficult to secure the increase in their budgets without first proving an ROI. But the ROI is there to be had for the companies willing to make the investment. Richard Joyce, of Forrester, makes a convincing point.
“Marketers that can effectively manage data quality will have a competitive advantage because of all these barriers to data quality, companies that invest the time and budget to solve the problem will have a distinct competitive advantage. For example, “CRM-powered ads are 47% more effective than traditional targeting.” (According to Salesforce’s 2015 Advertising Index Annual Report.)
In summary, in the age of data-driven business, so many decisions across every organization will be based on metrics. The departments, divisions, and companies that can base their decisions will have an intrinsic competitive advantage over competitors. So, when it comes to your marketing department, help them grow your business by allowing them to use the most accurate data sets possible to make intelligent and sound assumptions.