Data collection is a huge part of business-to-business (B2B) marketing. It provides valuable insight into the actions of consumers. However, there are cons to using data as well. It could even be said that data is holding back marketing in B2B transactions. Why is this happening? We will be discussing this in the article below.
Businesses now have the ability to collect a vast amount of information from consumers. This is due partly because of a recent increase in technology, where consumers can select their exact preferences when searching for a product. However, this CRM (customer relationship management) data is not always accurate. For example, it is likely that the wrong contact information will be collected. This is because customers generally do not want to sign up for company updates, so they will provide the wrong email address instead of their real one. As well, businesses are now expanding and growing at a very fast pace. This means that their information could potentially be different from one week to the next. This will result in inaccurate data being entered into the system.
Data does not provide all the information
When you gather information about a consumer or business, the goal is to find out as much about them as you can. You want to find out what they are looking for, and how to make them choose your products. Unfortunately, data collection is limited in this area. It is very difficult to have enough data for an overview on the entire consumer or business. This may be because some of the crucial pieces of information are not being shared. The business may not know what the customer is looking for, because they have not indicated a preference. The business will be unable to target their marketing at the customer for a particular product. For the company to build a relationship with their customers, they will try their best to optimize the shopping experience. This is more difficult when the data points are contradicting, or are limited.
Data does not stay current for long
For the optimal customer and business relationship, the data that is collected should be as current as possible. This is because the business will immediately want to implement the new wishes of the customer. However, it takes a long time to collect all the possible data from one particular business. By the time that a new piece of information has been added to the knowledge bank, an older one may no longer be relevant. For example, a business may move and change their address. They will not be able to be reached at their old address. Time and resources will need to be spent to find the new address. The data will also need to be verified again to make sure that the company is still doing business. It is difficult to stay ahead and up to date on all the information that is needed. This is especially true if the business has multiple customers that they are working with.