Impacts of Bad Data Lead to Negative Consequences

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Marketing Automation and Your Contact Records: A Five Part Series That Every Marketer Can’t Miss (Part 2)

Data integrity is beyond a doubt “the” cornerstone of your marketing campaigns. Think carefully about this. ALL company decisions, both operational and strategic, are based on the information you collect from your data. And we’ve already acknowledged that bad data exists in your marketing automation platform. So just how deep do these impacts go? Let’s dive right in, looking closely at the top two offenders: Mistrust and Costs.


“If you can’t trust the data, what else will you base your decisions on? If you can’t trust the data, how much effort will be wasted checking and rechecking certain results to figure out which is correct? And how much effort will be spent in investigations, root cause analysis and corrective actions required to fix data problems?” Carol Newcomb, Consultant with SAS Data Management Consulting

It’s no joke. Mistrust happens both internally and externally. Remember in our last post we stressed the importance of establishing trust between your marketing and sales teams (internal)? Well, that same nurturing needs to happen with your vendors and customers (external). Especially since their data is tied to everything in your organization. I would venture to guess that your CRM is connected to accounting. What if, after all your hard work to gain your customer, their invoice was sent to the wrong address? It’s going to get back to you and YOU are going to need to fix it. But here’s the bigger problem: when mistakes like this become repetitive, your reps stop believing that the data in their contact records is genuine, accurate, and up to date. They oftentimes feel compelled to update their own records. What’s worse, your customers and vendors will become annoyed, being asked over and over again, from different sources, for their contact info. Savvy marketers must realize that small missteps like this can lead to bigger issues, putting your company’s reputation and brand directly in harm’s way. Left unaccounted for, mistrust will weaken your company’s foundation in much the same way that a trickle of water slowly erodes bedrock, causing irreversible damage.

This leads us to Costs:

“Most organizations overestimate the quality of their data and underestimate the impact that errors and inconsistencies can have on their bottom line.” The Data Warehouse Institute

Brace yourself…you ARE wasting money. That is, bad data is causing a loss of revenue. How many emails, direct mail, and phone calls go out on any given day? Knowing that 25% of your customer data is inaccurate due to duplicate accounts, intentional and unintentional data entry errors, lost contacts, aging contact records, there is a serious loss of productivity happening here. To demonstrate the cost of quality, let’s apply the 1-10-100 Quality Management rule by George Labovitz and Yu Sang Chang: it costs $1 to verify a record as it is entered, $10 to fix it later, and $100 if NOTHING is done, which leads to loss upon loss upon loss. And, we know that corporate data is growing at an average rate of 60% per year and climbing, so it’s all the more important to screen your data going in and then maintain and manage it over time. The takeaway: quality IN equates to quality OUT, saving you time, resources and money all the way around.

If you’re like me and enjoy a detailed checklist, you’ll appreciate the following. Business2Community has compiled a spot on list highlighting many of the consequences of bad data:

  • Lower customer satisfaction and retention
  • Loss of Revenue
  • Misinformed OR under-informed decisions
  • Dissatisfied sales and distribution channels
  • Lower productivity
  • Higher consumption of resources
  • Invalid reports
  • Failure of your marketing automation initiatives
  • Higher maintenance costs
  • Errors in product/mail deliveries
  • Increased churn rate
  • Distorting campaign success metrics
  • Higher spam counts and un-subscriptions
  • Negative publicity on social media

Hungry for more? Great! Let’s begin focusing on where to find the problems and inconsistencies so we can clean up the mess. In Part 3 of our series, we’ll get up close and personal with a lead form, how these can go wrong, and then how to correct them.

If you are interested, Service Objects provides a free Data Quality Scan that will give you insight into the quality and accuracy of your contact data. Click here to get your free scan.

Up Next: Part 3: Data Breakdown Happens. Know the Reasons “Why” and Protect it from the Start