Stop miscalculating the ROI; start enriching raw data for business
Gautam Mane, January 2, 2019
Nearly 12% of revenue is lost due to duplication of raw data which has adverse effects on the ROI. Developing net new data collection is critical to overall business performance.
Get ready to identify the objectives
Unless the objectives are clear, even good data proves to be useless. For example, the high bounce rate in email marketing can be a total waste of time for any salesperson. It only leads to more frustration. When you collect specific data, to achieve the revenues you will need three scales to avoid any miscalculation:
- Clear the objective/goals of data gathering.
- Develop a methodology that will propel the data enrichment to meet targets.
- Analyze the data before it is used to create efficiency and predictable results.
Possible reasons for miscalculation
When the CRM notices about 100,000 leads (a hypothetical situation), the sales team will blindly accept that about 15% to 20% of them will become customers, effectively whenever an email campaign is launched. But this usually does not happen.
Because efforts have been duplicated and the team does not even realize it. If data collectors check, they will find at least 10% of leads are duplicated or false. So, effectively, the first miscalculation appears even before the campaign is launched. They have only 90, 000 leads to convert. This ultimately lowers the efficiency and the expected ROI. It becomes necessary to detect the duplications and rework objectives.
Clearly, the first scale becomes important. Re-read it once more. It will help you to reduce marketing costs.
Duplication creates confusion
When a prospect’s information comes in the system multiple times, it could make it challenging to understand the relationship he/she has with the brand. CRM systems need to be aligned to reduce efforts and understand the patterns of behavior. You will need to figure out by analyzing their interaction.
Look back at the second scale. Develop a methodology within the organization or the sales team to develop data enrichment to meet the target ROI.
Customers bring more business
If the brand gets a bad reputation, it is usually because the customers are unhappy. Take them seriously to increase overall business performance. When you take care of loyal customers they bring in more business. They recommend the brand and services. When you are sure that customers will provide a positive response, the results are predictable and reassuring. Make a list of such customers, understand and analyze their continuous interaction with the brand or service.
The third scale deals with the efficiency of analyzed data. All information derived from transactions and sales have to undergo the process of analyzing. It is an integral part of data cleansing process.
Never miss sales opportunities
Now that you understand the links between the overall business performance and ROI potential, keep the three scales as parameters. Inaccurate data tends to result in lost opportunities. Instead of hovering around wrong prospects, it is better to chase positive leads and make the sales effort count.
Zeroing-in on the right data collection matters. Market leaders can set goals and parameters on data collection at ground level. This will clear the misconception early on and mitigate risks of useless information.
Equation between business performance and net new data matters
Over all business performance can only be gauzed once the analytics is in place. Other than the three-scale parameters, auditing the marketing online and offline will determine the efficiency of the techniques used.
The only equation that will hold critical significance is the most powerful tool called analytics for marketers. When new data emerges, the way the insights are derived and in this context the new strategy is formulated will affect business. Before applying the new data to conversion rate, learning process will enable you to understand the new leads. It will force you to improve the marketing decision with the new data. Apply this new learning curve to create an edge over rivals. Treat this as a trump card to create a new angle to the 3-scale parameter-after all data speaks for itself and you.