When data isn't prepared correctly, it can cost your organization anywhere between 10% and 25% of your overall business revenue. That's a lot of money to be leaving on the table, especially when bad data can be easily fixed with self-service data preparation software like Zoho DataPrep.
What is prepared data?
Data collected from various sources often contains data quality problems, which is referred to as raw data. This data can't be directly processed, because it could be in different formats or might include duplicate, irrelevant, or incomplete data. When this raw data is collected, collated, cleaned, and formatted the right way, it's called prepared data.
3 ways prepared data can boost revenue
Organizations are split into many processes that work towards a similar goal; let's look at different scenarios in your organization and how prepared data plays an important role in boosting efficiency and productivity while reducing expenses.
Scenario 1: An organization started 10 years ago, and a huge amount of data is amassed, leading to high server costs
As an organization grows, it can end up with huge amounts of data. According to a survey by Rightscale, a small- to medium-sized company spends around $120,000 every year on cloud technologies—storing and managing data costs a lot of money. While it's not possible or preferable to delete all historic data, it can be cleaned and prepared to reduce server space.
Thankfully, data preparation can greatly help with optimizing cloud spend and reducing overall storage costs.
Scenario #2: It costs you 3X more to acquire new customers than it did just a few years ago
A study by SimplicityDX showed that ecommerce customer acquisition costs increased by 222% between 2013 and 2022. In fact, brands are losing $29 for each new customer acquired. This is clearly the result of more organizations increasing their online spend, to try and reach out to more new customers. This makes customer loyalty an important aspect for a brand's success.
To improve customer loyalty, personalization is important. By preparing and segmenting data, one can group customers based on their preferences and buying behavior, which makes personalization much easier. McKinsey says that companies with a well-sorted personalization strategy have reported an increase of 40% in their revenue.
Another way prepared data can help is by analyzing these personalized campaigns. This helps businesses understand what sort of marketing messages resonated better with which audiences. In the long run, this can help us understand our target audiences better and give insights on how to craft the perfect marketing campaigns needed to reduce overall customer acquisition costs.
Scenario #3: Your sales team spends way too much time on unqualified prospects
Marketing teams spend thousands of dollars bringing in leads to the sales pipeline. The biggest problem with these leads is that they're not clearly marked as sales- or marketing-qualified leads. Only by enriching these leads with additional data can one figure out if it's a lead worth chasing.
Most organizations have a simple approach, where once leads are collected, they're immediately passed on to the sales team. This leads to a higher chance of not converting, because the lead isn't nurtured properly.
When additional data is collected based on how long a particular user has spent on a webpage or how many emails they've opened, the lead data can be enriched with more relevant information. This helps the sales team understand their prospects a little bit more. When a lead seems qualified, they have all the relevant details needed to pitch the product or solution in the right way to convert customers.
Another way prepared data can help sales teams is by easily cleaning their CRM data, to remove any invalid or duplicated leads. This ensures the sales team only spends time on valid leads.
These scenarios are some of the biggest issues faced by most organizations; but by getting creative with data preparation and management, organizations can come up with foolproof ways for solving complex problems.
Curious to know more about your organization's data? Try Zoho DataPrep for free now!
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