Data is the new black gold of the 21st century. Once a largely untapped resource, it’s now clear that businesses holding the key to extracting and refining this asset are poised for substantial growth. This is especially true in the B2B sphere, where data-driven insights can revolutionize operations and customer relationships.
Using data and smart analytics is a must-have for any company trying to make waves in marketing and sales. Understanding your customers inside and out helps you target the right people, work better with your sales team, and ultimately, increase ROI. But like anything valuable, B2B data can be tricky to handle.
Recent studies by Forbes and KPMG reveal that 84% of CEOs are worried about their data quality. Additionally, one in five businesses experience revenue loss due to inaccurate and incomplete information. While businesses today have vast amounts of data ready for processing and analysis, many lack proper data management processes, leading to data quality issues.
The biggest B2B database challenges can derail sales success in 2024. While the specific issues with data will vary depending on an organization’s size, industry, infrastructure, and the types of data they handle, these core problems keep popping up in data management:
Table of Contents
A Breakdown of Top B2B Data Challenges Hindering Your Marketing Efforts
Gaps in Customer Data
There’s a ton of customer data out there but piecing it all together can be a real headache. From what your customers click on to what they buy and how they feel, there’s a lot to track. Marketers frequently struggle to organize all these data sources and connect online and offline behaviors.   Â
Handling Inaccurate or Outdated Data
When a company’s database gets too big, it’s common to end up with inaccurate or outdated information. This usually starts during the data collection phase and becomes more of a problem when data is pulled from different sources and formats. If there isn’t a standard way to collect data, marketers might struggle to analyze it effectively and turn it into actionable insights.Â
Data Silos
Data silos pose a significant challenge for B2B enterprises managing customer and corporate databases. When information is kept in separate databases that don’t interact, it creates data silos. Without a unified source of truth across all departments, companies may experience poor execution, misalignment between teams, and a limited understanding of customer needs.
Lack of Insight
When there’s a flood of information and numerous data sources, it’s tough to consolidate records accurately, which means sales reps often work with incorrect data. This makes it hard to build effective retention models, develop accurate customer personas, or make insightful decisions. The problem usually starts when data is collected in an unstructured way from various channels.Â
Struggling with Low-Quality Leads
Dealing with low-quality leads is a common hurdle in B2B sales. Research shows that up to 40% of leads might be off-target or unreliable. So, out of every 100 leads you gather, less than half may be worth pursuing. This can mean wasting time and resources on leads that don’t lead anywhere. To fix this, prioritize the quality of your leads over the quantity. It’s more about finding the right leads than just getting more of them.Â
Poor Data Management
Poor data management is a real issue you should be aware of. Gathering relevant data about your B2B audience is just the start; the key is using that data effectively in your sales strategy. Data management means keeping your records organized and accessible for both sales and marketing. Tools like Customer Relationship Management (CRM) software can make this process much smoother.Â
Data Decay
Data decay is something you need to watch out for in your B2B company. If you don’t use your newly acquired data quickly, it can go stale or become irrelevant fast. This process, known as data decay, means that your data might be useless if you wait too long. Gartner even found that B2B data can decay by about 70% each year. To avoid this, try to make use of new data as soon as possible.Â
Solutions to Overcome B2B Data Challenges
Here’s how you can tackle common B2B database challenges:Â
1. Create a Single Source of Truth
Use technology to unify your customer data across all departments. Implement standardization processes to ensure data from different sources is consistent. This will help you fix problems with duplicates, incomplete records, and inaccuracies. Also, make sure to validate and profile your data regularly to catch and eliminate outdated or conflicting information.Â
2. Partner with Trusted B2B Data Providers
Team up with reliable third-party B2B database providers to fill in missing data, verify, and update your records. These experts keep your data fresh and accurate by using top-notch data quality management practices. They can also add extra customer info where needed. Any differences between your data and theirs can help spot and fix inaccuracies.Â
3. Focus on Data Validation
To set your B2B company up for success, prioritize quality control and take these proactive steps:Â
- Validate Data Right Away: Check data as soon as it enters your system.Â
- Use Real-Time Validation Tools: Implement automated tools to ensure all incoming data is accurate and reliable.Â
4. Build a Solid Data Management Strategy
Start by checking out your current processes, tech stack, and lead generation tools to find any gaps. A good data management strategy starts from the moment you collect data. Pick advanced solutions that can scale with your business. Then, clean up your database by removing outdated, duplicate, and inconsistent data. Finally, set up a data integration system with AI/ML to keep things running smoothly and automatically.Â
5. Integrate Data for Optimal Results
Even the best database can fall short if it isn’t properly integrated. Without integration, you risk creating data silos and fragmented information sharing between departments. To truly harness the power of your data, it’s crucial to use real-time automated tools and CRM systems. These technologies ensure that everyone has access to accurate, up-to-date, and complete customer information, enabling seamless collaboration and more informed decision-making.
Conclusion
A brand can have excellent products/services, state-of-the-art technology, and strong demand generation capabilities, but poor data management can still undermine business results and revenue. It’s crucial for brands to swiftly identify and resolve revenue-draining issues within their databases using industry-proven tactics. Without this, sales outreach efforts can suffer greatly. Every B2B organization should also collaborate with leading B2B data providers to manage and optimize their data effectively.Â
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Are data challenges holding your business back? Write to us at [email protected] to overcome these obstacles and boost your business performance.Â
