This week, LeadGenius released a free B2B Database Decay Calculator.
Customer data decay is the natural and consistent degradation of company information (firmographic data), personal details (demographic data), and most importantly, accurate contact information (phone numbers and email addresses). Sales and marketing databases decay for a variety of reasons including hires, separations, promotions, company restructuring, growth, mergers, and downsizing.
Sales and marketing teams depend on accurate customer data for automation and efficiency. Inaccurate customer data results in poor targeting, increased manual touches by reps, and wasted opportunities.
Whom is this tool for?
Sales and marketing professionals who work with databases and lists of potential customers.
Customers records can live in a CRM such as Salesforce, SAP, NetSuite, and Zoho. A marketing automation database such as, Hubspot, Marketo, Pardot, and Eloqua. Or, an email automation tool such as, MailChimp, Aweber, and Constant Contact.
What exactly does the LeadGenius’ Database Decay Calculator show me?
LeadGenius’ B2B Database Decay Calculator models the compound effect of customer decay over time. This tool can be used to estimate overall database decay or customer decay related to an industry-specific list or campaign.
Most B2B companies target customers in well defined industry verticals. If your customer records fall into multiple categories, select “All Industries” or re-run the calculator to model each relevant industry.
How is the data calculated?
The data in the LeadGenius Database Decay Calculator comes from a combination of LeadGenius’ LeadCloud data and industry figures from the US Bureau of Labor and Statistics.
Industry decay rate fluctuates slightly depending on seasonal trends. For the LeadGenius Database Decay Calculator, monthly fluctuation has been averaged and the data is modeled with a simple exponential decay equation, P(t) = P0e-rt.
Where do I look to find the number of records in my database?
Search for “all records” or “all contacts” in your respective CRM or marketing automation database. This information is also typically displayed in your main dashboard or customers tab.
You can also simply enter the number of contacts associated with a single industry-specific list or campaign.
Why should I care about database decay?
Estimating database decay is all about making projections —knowing how many of your customer records will likely slip out of date in the coming months.
Before allocating internal resources or investing in 3rd party tools and services for either lead generation or lead enrichment, first understand your company’s susceptibility for customer data decay.