Admittedly, Data is the most valuable asset any business can have. We are in the latter part of 2021, moving swiftly towards 2022, yet many B2B businesses often overlook the value of their most prized asset – their data. The adage “data is the new oil” has been thrown too loosely among the B2B community for anyone to take it seriously. As a result, according to a recent McKinsey report, “86% of B2B businesses believe that they can do much better with data.” In reality, though, that number should have been much lower, considering the fact that we have numerous multi-billion-dollar businesses spurting out of consumer data in recent times. There is no reason for established firms to overlook their data. After all, they have significant organizational advantages over their new counterparts.
So, as B2B businesses sit down to re-look at some of their business strategies for a world after COVID-19, a world where they have access to more customer data than they have ever before, it’s time to weave a strategy with data at the centre of it all. Leveraging this data will put their businesses years ahead of the curve and create new business opportunities for the future. Not all consumer data is valuable or can be used within the bounds of GDPR, but there still is a massive chunk of valuable data, and businesses must have B2B data management strategies in place to mine it.
So, we take a closer look at –
- What is B2B Data Management?
- Why B2B businesses must prepare a data management strategy?
What is B2B Data Management?
Simply put, B2B data management is a well-defined process of storing, collecting, managing, and safeguarding a business’s customer data. Companies can undertake various data management practices to strategically analyse and utilize that data to derive their consumers’ preferences and persona.
For a significant period, businesses were under the impression that “storing customer data is equivalent to having a data strategy”, but that was pre-big (data) bang. There even was a time when B2B data management was considered equivalent to having a CSV file in order. Those were simpler times. But sadly, and thankfully, we do not live in those times. In the current world, where by 2025, the amount of data generated every day is estimated to reach 463 exabytes globally (World Economic Forum, High Scalability), you will need a lot more than CSV files to manage any fraction of that data. As a good start towards an effective B2B data management strategy, businesses must –
- Organize their customer data
- Invest in a Good CRM system
- Automate Tasks with A CRM System
- Give your CRM comprehensive Data Cleansing
The term “bad B2B data quality” or just “bad data” has resulted in a massive waste of time and resources, increased email bounces, unanswered calls, etc. All of which can hurt any brand image in the world. If you do not want that for your brand, B2B data management is your answer.
Why B2B businesses must prepare a data management strategy?
On its own poor data management can have a severe impact on the performance of the whole organization. But if we are to pinpoint, the sales and the marketing departments have the most volatile impact of bad B2B data or data management in general. With almost all the businesses adopting digital as their primary mode of communication, marketing, and work in general, how they leverage the data they possess holds the key to their success for the foreseeable future. So, let us look at some benefits that having a data management strategy brings with it and why B2B businesses need it more than they think they do.
Segmentation or having the proper buyer persona could have compounding effects on any business’ growth, especially when you consider that 95% of companies struggle with unstructured data (Forbes). With no proper data management or B2B consumer insights to power your CX strategies, you are as good as working in the dark. If higher conversion rates and exceptional customer experience are your business goals, you need to derive insights from your consumer data, and devoid of a data management strategy, that is just impossible.
Making It Accessible
Gartner found that 50% of all marketing decisions lack factual data to back them in a recent study. The lack of access to evocative business data results in conclusions based purely on hunches instead of factual data. This is why you need to give business users access to the data they need to build and validate their customer interaction/experience strategies. Unfortunately, it is easier said than done, but it can be done as a business with proper coherence between the IT and relevant teams. And must be done.
Making It Actionable
Having customer data is one thing – deriving actionable insights from it is another. Even the biggest of organizations fail to extract any actionable insights from their B2B databases. With a proper B2B data management strategy, you will be able to extract customer insights to engage with your prospects throughout their multi-step customer journey. You can also create real-time customized experiences for better engagement.
There is no denying the fact that enterprise data warehouses (EDW) and data lakes are superb at storing your customer data. But the data there remains in an unrefined form, which is of no use to your business growth. With robust B2B data management strategies, you can transform the unrefined data into accurate, relevant, and reliant data points. These data points can then be used to design marketing campaigns, develop attributes, and orchestrate customer journeys to fuel business growth and achieve business goals.
For a comprehensive b2b data management strategy or a free data audit, reach out to us.