There’s one thing, and only one thing, sales and marketing pros agree on about data decay – it happens.
The frequency, impact, and prevention methods are debated.
Some articles claim the average CRM data decays at least 30 percent annually (2.5 percent per month). Others say the rate is around 25.2 percent annually or 2.1 percent per month. Some peg Silicon Valley as high as 70 percent. Turnover rate differs by industry, position, geography, etc.
Regardless, data decay results in a serious amount of revenue loss and wasted time by sales reps.
An email marketing study of 200 million emails was inconclusive, finding bounce rates ranged from 2-15 percent.
Fortunately, there’s a trove of sales data inside the Prospectify platform to help answer this question. We’ve begun to study real contact data in a search for answers.
The first step was pulling 1,000 randomly sampled, verified email addresses across all types of industries, departments, and titles. We tracked the undeliverable rate each week.
After 28 days, 4.5 percent were no longer valid. At that rate, annual data decay would be a crippling 54 percent!
Consider this hypothetical scenario.
Let’s say you have 20,000 ideal prospects in your CRM. It’s the top tier contacts of your top tier accounts. Let’s assume you normally convert your ICPs to opportunities at a rate of 20 percent, and that you win 40 percent of those opportunities with an average contract value of $10K.
You’re set to bring $16 million of revenue from these 20,000 records, assuming there is no data decay.
At a decay rate of 4.5 percent, revenue projections begin to drop each month.
After 30 days: $720,000
After 60 days: $1,407,600
After 90 days: $2,064,258
Here’s a link to a calculator that you can download or copy & paste to use for your own calculations.
The Prospectify Data Decay Solution
Other solutions may re-enrich your CRM data every 30 days. But, what good is re-enriching if the seed data is out-of-date or just wrong?
We take it a step further. Prospectify will re-verify every contact record including email addresses, direct-dials, title, and more. Then, we’ll re-enrich those records and the account records as well.
Using our sync, we’ve seen customers reduce their data decay rate significantly. The beginning can be painful, some customers have had more than 40 percent of their CRM contact records out-of-date or otherwise incorrect. But, by moving to a proactive solution, it’s become a MUCH more manageable process.