Consequences of Bad Data on Sales

Data is a key component in every business. The success or failure of a business depends on the quality of the data collected, stored, and consumed by the business. Data affects all aspects of the business including the sales department. Sales representatives using quality data can improve their productivity. The data helps the representatives in decision making, understanding the customers better, and improving future performance of your business.

However, all this is only possible if you use quality data. Bad sales data can be so costly to your business leading to catastrophic revenue loss or affect your business's reputation. In this blog, we will look at how bad sales data impacts sales.

First, let us look at what bad data is and how it occurs.
Data is considered quality if it is fit for the intended purpose. On the other hand, bad data does not accomplish its intended purpose of use. 

Bad data may occur due to any of the following:

• Inaccuracies
• Duplicate entries
• Missing fields
• Data entered in the wrong field
• Non-normalized data
• Misspellings, spelling variations, and typos.

The impact of Bad Sales Data on Sales

Sales is one of the most affected departments by bad data. Here are some of impacts of bad data on sales.

1. Poor Customer Relationships

The sales representatives are the welcoming team of prospective and new customers to any business. A mistake by the sales representative may lead to mistrust by the customers. According to Thomas Redman, bad data in customer communications can lead to a reduction of total revenue by 25%.  Bad data also results in undelivered messages, misspelled names, contact or account mix-ups, and duplicate communications. Though the mistakes seem small, they can have a disastrous impact on your business including poor customer relationships. These dissatisfied customers will likely not return to your business and may spread bad word about your business affecting other potential customers in the future.

2. Inefficiency

Just imagine a sales representative dialing a wrong number or emailing an outdated account. In doing so, he/she would have lost valuable time that they could have spent selling or doing other valuable activities. Inaccurate data causes sales representatives to waste 27.3% of their time translating to 546 hours in a year for every full-time sales rep. According to Gartner, businesses will lose more capital in operational inefficiency due to bad data issues than they will spend on customer relationship management (CRM) and data warehouse initiatives.

3. Higher Maintenance Costs 

It is usually more expensive to compensate for bad data than maintaining a clean database. When your business data is inaccurate, every employee will have to make some accommodations within his or her everyday workflow. Employees including sales representatives take it upon themselves to manually correct data riddled with errors to complete the task at hand.  This is both expensive and inefficient. 

4. Frustrations and Low Motivation Among Your B2B Sales Representatives

Bad data also affects employee productivity. It is frustrating for sales reps relying on inaccurate data to do their job. It is important to note that most sales jobs are commission-based and therefore anything that frustrates the sales reps will impact their morale. They will not be willing to perform such tasks where accurate information is not guaranteed.

Good news is that all the above negative impacts of bad data on sales can be avoided. You need to audit your database by consulting a B2B database profession. You should also improve your data collection methods to avoid errors in data collection and entry. Similarly, you can also automate your data maintenance. 

Get a B2B Sales Intelligence Solution for Your Bad Data and Your Sales Team at Onemata

Here at Onemata, our goal is to help you get smarter about sales with good data to avoid suffering the consequences. We invest in data for leads and sales as you do sales software tools. A tool is as good as how you use it and half of that is the data you put in. We are trusted by people and businesses as their data and analytics partner. Give us a call Today and say goodbye to your bad data problems. 


March 23, 2021

by Mike Higgins



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