Is it better to invest in updating your database or is the money better spent on a good sales resource?
Is it worth investing in updating and cleansing of your database, or will a good sales person or marketer be able to make up for a poor database and generate quality leads and reach out to them right away?
A different way to look at this question, is by asking, what is the cost of not having an up to date and accurate data base for your sales and marketing activities?
A prevailing factor with sales campaigns that are struggling is a poor database to market and sell to. In such cases, there is a predominant reliance on the seller’s ability to generate their own database.
Even a very large database, is no guarantee for quality as it may well be out-dated, or irrelevant for the specific campaign (after all, how accurate is a database that is a few years old already?).
Unfortunately, the quality of a database is often not recognized or looked at properly. Some common misconceptions with regards to the quality of a database:
- A large database will make up for its poor quality (out-dated or incomplete data)
- Good salespeople will be able to develop and research their own data
- Sales agents should be able to keep up their KPIs and research their own data
- It’s better to invest in an extra sales resource to bring in revenue than it is to spend that budget on a data cleansing exercise
Investing in building or cleansing of a database is often still seen purely as a cost; therefore it is much easier to justify an investment in additional sales or marketing resources. However, the lack of quality of a database will surely slow down the seller’s ability to cover data, or the marketer’s ability to reach sufficient people in the right target group. Disappointing results are most likely the outcome of this.
Without exception, we see a difference in companies who (in some way or another) invest in updating, cleansing or building their database versus those who don’t.
Investing in a database should therefore always be considered during the preparation stage of any sales campaign and be an integral part of the budget for any sustainable business.