Here on The Pipeline, we regularly cover topics related to business data and business data management. In fact, there are very few aspects of business data we have yet to cover.
But, today we’re venturing into uncharted territory to discuss a recent—and necessary—trend in business data. That is, the switch from static to dynamic data management.
Today’s blog post explores the difference between static and dynamic data. We also look at why this transition is critical to the success of the modern business. Let’s get into it.
Dynamic Data vs. Static Data
As you may have guessed, static data refers to a fixed data set—or, data that remains the same after it’s collected. Dynamic data, on the other hand, continually changes after it’s recorded in order to maintain its integrity.
In concept, the difference between static and dynamic data is simple enough to understand. Yet, when you look at the impact data has on the average business, things become slightly more complicated. Here’s what we mean: In the past, organizations mainly relied on static data to conduct sales, marketing, and operations.
But, as technology increased the efficiency of businesses everywhere, companies began to collect data faster. Meanwhile, the data they’d collected began to decay at an unprecedented pace. In fact, in 2014 we reported that a staggering 94% of businesses believed their prospect and customer data to be inaccurate (source).
In recent years it’s become abundantly clear that the world of customer and prospect data must undergo a transformation. And luckily, we’re seeing more businesses make the shift to a more dynamic mindset when it comes to data.
4 Reasons to Make the Shift to Dynamic Data Management
Although the concept of dynamic data seems simple enough, making static data more dynamic often seems like a daunting task. Because many businesses aren’t sure how to start the process of data cleanup and diligent data management, they simply don’t do it.
If this sounds like your business, your static data might be hurting you more than you think. Consider these statistics:
- 40% of business objectives fail due to inaccurate data (source).
- Bad data costs U.S. businesses more than $611 billion each year. (source)
- 64% of “very successful” data-driven marketers say improving data quality is the most challenging obstacle to achieving success (source).
- Companies reported that lead generation (80%), marketing (66%), finance (30%) and customer relationships (54%) were the business processes most affected by dirty data (source).
There’s no way around it, static data is a modern-day death sentence to the success of any organization. Although that alone should be enough to convince you to make the switch to dynamic data management, here are four more compelling reasons you can’t afford to ignore this massive shift in the world of business data:
1. Dynamic data enables a customer-centric business strategy across all departments.
Today’s customers are well-informed. They know what they want—and they’re calling the shots. In the current, hyper-competitive market, if a customer’s needs aren’t met, they simply take their business elsewhere—to a brand that will deliver a more positive experience. In fact, 91% of customers who have a bad experience with an organization won’t be willing do business with that company again (source).
Although most modern companies recognize the importance of a customer-centric business model, many aren’t aware of the vital role dynamic data plays in achieving true customer-centricity. Think about it this way: In order to thoroughly understand your customers and offer experiences that speak to their wants, needs, and preferences, you need access to prospect and customer data.
Now, if the data you have is static, it starts to decay the moment you collect it—after all, people themselves aren’t static. We start new jobs, move to different cities, and we change our minds about things all the time. Static data doesn’t account for these changes. But, dynamic data does—updating in real time as these changes occur.
With dynamic data, you can confidently analyze your customer base and create personalized experiences to ultimately increase customer lifetime value and reduce churn. For a more in-depth look at personalized marketing and customer-centric business strategies, we recommend the following articles:
2. Progressive persona profiling.
Here at ZoomInfo we talk a lot about buyer personas—what they are, why you need them, and how to create them. But, what we have failed to acknowledge is that, although useful, the standard buyer persona is static—unlike real human beings.
To bringup to speed and make them more dynamic, the KERN Agency came up with something called progressive persona profiling. Progressive persona profiling is a concept similar to the process of creating traditional buyer personas. However, this model also takes the fluid nature of human behavior and decision-making into account.
Scott Levine, VP of the KERN Agency, explains the thought process behind progressive persona profiling like this:
“Progressive persona profiling is based on the rapidly changing human behavior patterns that occurred as a result of the convergence of faster connection speeds on both mobile and home devices, the accelerated adoption of online searching and sharing, and the proliferation of social networks and always-on communication abilities.”
Progressive persona profiling is the logical next step in persona creation, as it’s a more dynamic approach to an age-old marketing practice. But, in order to use progressive persona profiles to your advantage, you need access to one thing. You guessed it—dynamic data.
Dynamic customer and prospect data will fuel your progressive persona profiles and ensure they evolve alongside the actual prospects you’re trying to reach.
3. Dynamic data facilitates better business-wide communication and alignment.
Static data is often kept in separate silos and left to decay at the hands of the departments who need access to it. Dynamic data on the other hand is shared freely between departments and platforms—as it’s continuously updated and stored in a centralized location.
This means, an entire organization has access to identical information regarding customers and prospects. If a data set is truly dynamic, it takes less effort to achieve consistency across sales, marketing, branding, and more.
For more information about the importance of open communication and alignment, check out the following resources:
- 3 Sales and Marketing Alignment Best Practices
- Swim Lanes for Marketing, Sales Development, and Sales
- 20 Sales and Marketing Alignment Statistics
- How to Improve Communication Between Marketing and Sales
4. Dynamic data is hygienic data.
When we refer to dirty or bad data, we are referring to data that is out-of-date, incomplete, or incorrect in some capacity. Although no data set will ever be 100% accurate, implementing a more dynamic approach to data collection and will significantly improve the quality of your data.
Hygienic data is critical to all essential business processes. This includes the operation of key business technology, sales prospecting, reporting, selling, marketing and so much more. Research even shows that inaccurate data has a direct impact on the bottom line of 88% of companies, with the average company losing 12% of its revenue as a result (source).
Simply put, businesses can no longer rely on static data. Saying, “I don’t care if my data isn’t dynamic,” is the same as saying, “I don’t mind losing a significant portion of my revenue.”
Final Thoughts on Making the Switch from Static to Dynamic Data
The main takeaway here is obvious: Dynamic data is critical to success in the current business landscape. Yet, the one question we’ve left you with is, “How do I transform static data to dynamic data?”
Although there is no single answer to this question, we’ll leave you with our best advice. Invest in your B2B data and trust the professionals to handle it. Recent technological advancements have enabled companies like ZoomInfo to release groundbreaking tools and services. These tools and services give businesses exclusive access the most dynamic data set on the market.
In addition to our extensive business database of direct dial phone numbers and email addresses, our platform has the unique ability to automate critical data maintenance processes, alert you to important changes in your data, and regularly deliver timely updates about the contacts and companies you care about most.
For more information about making the shift from static to dynamic data, click the banner below. Our team of data professionals can work with you to grow your business and improve your data today.