Poor Marketing Data Puts Your Business at Risk — Let’s Fix It

Relying on data to keep a business on track can sometimes be like playing the telephone game. Somewhere along the way, information may get distorted, leading to an outcome completely unrelated to what you had in mind in the first place. 

In other words, misinformation (or what we call “bad marketing data”) can present significant challenges for businesses. Indeed, a 2022 survey by iResearch Services showed that 94% of business leaders acknowledged poor data quality as a problem. Nevertheless, only 37% felt well-prepared to mitigate its potential adverse effects.

As data plays an increasingly pivotal role in decision-making, let’s clarify what bad marketing data looks like, what are the associated risks, and what businesses can do to enhance their marketing data quality. 

Examples of Poor Data Quality

Poor data quality, or inaccurate marketing data, can manifest in various forms and shapes, more than one might initially expect. This only underscores the necessity for business leaders to remain vigilant for data inaccuracies across their CRM systems, marketing operation systems, and marketing analytics systems.

Some examples include:

• Inaccurate data (e.g., typos in contact’s email addresses or irrelevant contacts in cold emails)
• Outdated data (e.g., old marketing reports or contact information that is no longer current)
• Missing data (e.g., incomplete phone numbers or email addresses with missing numbers/letters)
• Duplicate records (e.g., repetition of data entries and records)
• Inconsistent data (e.g., names in varying formats like uppercase and lowercase)
• Irrelevant data (e.g., reliance on vanity metrics or too many metrics)
• Unverified data (e.g., incomplete market research or manipulated marketing data analytics)

This is How Bad Marketing Data Impacts Your Business

Misinformed Marketing Strategies

This is where the downward spiral begins, and a real-life example will best illustrate this. Before working with us, one of our clients trusted their gut feeling that their website was beautifully designed, but they were disappointed by the low organic traffic rates. Upon checking the numbers, it turned out that the sophisticated design severely compromised user experience. The website’s slow load time led to customer frustration, increased bounce rates, and, ultimately, a decline in conversions.

The lesson learned is that a marketing strategy drawn on bad data or unverified information is a recipe for disaster, spanning all business fronts — from failing to meet business goals and ineffective resource allocation to disappointed customers and unhappy investors. 

Client Attrition

Inaccurate customer information, especially when combined with wrong marketing data analytics, can result in unsatisfactory customer experiences, leading to customer churn. For instance, a client receiving multiple emails due to duplicate records, or users getting messages when they are not ready for them, signal to your customers that you are neither listening to them nor cognizant of their needs, prompting them to disengage or leave.

Legal Issues

In certain industries and areas (for instance, California’s CCPA or Europe’s GDPR), compliance is critical. Data quality issues that end up in non-compliance can incur substantial fines and legal complications. Also, falling victim to scams that result in a data breach can expose businesses to significant legal liabilities and potential lawsuits. Thus, maintaining data integrity and accuracy is not merely a best practice but a legal obligation. 

Reputational Damage

Poor data quality not only affects operational efficiency and decision-making but also undermines customer satisfaction, trust, and potentially the business reputation by unhappy clients who share their negative experiences with the world. 

Missed Opportunities

Marketing is about communicating with your customers, and if you lack accurate information about them—for example, not identifying the right customer segment due to careless market research, or prospects not receiving emails due to incomplete contact records—you cannot reach them to facilitate conversions. 

Furthermore, inaccurate marketing data also hinders your ability to track the effectiveness of your campaigns, meaning you can’t optimize crucial aspects like marketing workflows or Google Ads, resulting in an inability to approach your audience more effectively. 

Money Loss

Last but not least, all of the above eventually comes down to a direct impact on revenue streams:

• Marketing campaigns based on bad data means not reaching potential customers and missing out on conversions. 
• A lack of customer trust results in client attrition, loss of client loyalty, and fewer prospects for future customers.
• Aimless inbound marketing (not communicating the right message to the right person at the right time) equates to throwing money down the drain.
• Missed marketing opportunities represent a loss of potential revenue.
• Paying for marketing software without achieving marketing success leads to diminished ROI.

It’s estimated that inaccurate and incomplete data costs businesses up to 20% of their revenue annually. 

Tips to Improve Your Business’s Data Quality

With so many risks and challenges brought about by poor data quality and misinformation, it’s vital that businesses know what they can do not only to prevent data compromise but also to actively improve the quality of their marketing data. Here are some ideas:

1. Invest in Reliable Tools and Software: Utilize systems that can detect duplicates or missing data, and leverage marketing automation software to eliminate human error.
2. Use A Consolidated System: Store all data securely in one centralized location to avoid data silos.
3. Conduct Thorough Market Research: At Waypost, we call this process a Discovery Project, which allows us to understand the intricacies of our clients’ target audience, and form the backbone of their marketing strategies.
4. Implement Data Governance Policies: Establish clear guidelines for data collection, storage, and usage to ensure compliance across your organization and marketing automation platforms.
5. Educate Your Employees: Train your employees on the importance of data quality and encourage them to report any discrepancies.
6. Periodically Audit Your Data: Review and validate your marketing data to maintain accuracy and reliability. Data hygiene is critical to data quality and communication with your customers. 
7. Promote Data Literacy: The more you understand the significance of your marketing data, the more informed and result-driven your strategies will be.

Treat Your Marketing Data Like a High-End Appliance

Marketing data is like an electric product. When shopping for an electrical appliance, you’d most likely opt for higher quality despite the higher cost, recognizing that superior quality brings reliability, saving you money and hassle in the long term.

This principle holds true for marketing data as well. Low-quality or inaccurate data can lead to significant setbacks, while high-quality data paves the way for sustained business success. This is why businesses must be aware of the potential risks of misinformation and bad marketing data, and strive to maintain high-quality data at all times and at all costs. After all, no one wants to get stuck with something that causes more trouble than worth. 

To learn more about optimizing your marketing data for maximum impact, get in touch with Waypost Marketing today. And be sure to download our free eBook “The Data-Driven Advantage” for an in-depth guide on leveraging data to drive growth.