SMEs struggle with business data decay
Small firms across the UK face daily struggles with poor business data, according to new analysis from SalesJoe.
The lead management tool from Creditsafe found that clean business data decays at the rate of more than 13 times per minute.
It highlights the speed at which business data decays and reveals that data lists that are purchased today are out of date almost immediately.
This is causing issues for small businesses, as company names, addresses, directors and credit risk information are all changing too regularly.
More than five million businesses were analysed over a 12-month period and data decay was noted across all business sectors.
While the public administration sector saw 21,000 alterations, the construction sector had 1.3 million and the professional, scientific and technical services sector amassed 1.9 million changes.
The accuracy of data impacts on a wide range of business activity, as it will influence both sales and marketing activity.
Incomplete data sets or unreliable information can mean staff waste time, money and effort on chasing non-existent leads and targeting the wrong people.
Many smaller firms can ill-afford to waste finances and time on such activities, meaning that poor quality data is directly causing them to miss out on opportunities.
This may be causing growth to slow or financial losses that cannot be recovered, which if not monitored, could use up a significant portion of available budget.
Undertaking an options review may highlight a potential way of overcoming an issue, from assessing the current set up to offering advice on the best way forward.
Finding a way to access accurate information is key for small businesses, even if it may come at a cost – a firm will need to balance the costs of accessing such information, with the benefits it can bring in the long term (such as an upswing in sales or a wider-reaching marketing campaign).
Such activity then enables a business to focus on growth and prosperity, rather than on ensuring survival.
By Phil Smith
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