Quality of sales databases

The importance of contact database quality in sales: 59% lower total costs

In the world of sales, success is often determined by the quality of the database that the sales team works with. It is not enough to have a large number of contacts; what really matters is how accurate and up-to-date these contacts are. A high-quality database like ListaFirme's, with correct and relevant information, can make the difference between an effective sales campaign and a costly and inefficient one. Erroneous, outdated or contacts belonging to other entities, such as lawyers or accountants, can bring major losses in time, money and resources and these abound in data from official sources (e.g. mfinante or onrc).

Qualitative differences between databases

1. Accuracy of information: A quality database includes accurate and complete information about the respective contacts. This means that every phone number, email address and contact name is up-to-date and reflects the current reality of the respective company, which is why ListaFirme checks the contact information of the companies with its own call center. On the other hand, a poor quality database may contain contacts that are no longer current, such as outdated phone numbers, inactive email addresses or even names of people who no longer work for the respective company.
2. Irrelevant contacts: One of the biggest problems with a poor quality database is that it may contain contacts that do not directly belong to the target company. For example, you may find in such databases contacts of external lawyers or accountants, who have no direct connection to the acquisition process or decision-making in the company. These contacts are not only irrelevant, but can also lead to a waste of time and resources by communicating with people who cannot influence or facilitate a sale. These irrelevant contacts are found in 17% of official sources and sources that provide information taken from official sources.
3. Wrong contacts: Incorrect contacts are another major problem. These include data about people or companies that do not exist or are not related to the targeted industry. The sales team ends up wasting valuable time trying to contact the wrong names or companies that do not need your products or services. Each such error decreases efficiency and increases costs per sale. Incorrect contacts reach 8% in official sources.
4. Contacts not updated: A poor-quality database does not take into account market dynamics. In a constantly changing business environment, many people change positions, companies undergo restructuring or even close down. An outdated database may include contacts who have either left the company or are no longer responsible for purchases or collaborations. Thus, sales resources are misdirected, and costs per contact increase substantially. Out-of-date contacts exceed 20% in official sources.

The hidden costs of a poor-quality database

While a larger, but poor-quality database may seem like a cheap solution, the real costs become apparent when you start measuring the impact on your sales team. Every error or irrelevant contact introduces an additional cost. Here’s how quality decreases and costs increase:

1. Time wasted on irrelevant contacts: Contacts with lawyers, accountants, or other people who are not directly involved in the company's decision-making process are a direct waste of time. Each such irrelevant contact means a missed opportunity to reach the right person. Efforts are wasted, and the sales team becomes less effective.
2. Increased failure rate: Incorrect and outdated contacts lead to a high number of failed contact attempts. The conversion rate drops drastically, and a much higher number of attempts are needed for each completed sale. This means an increase in cost per contact, as the sales team has to work harder to achieve the same results.
3. Brand image affected: Contacting people who have no connection to the target company or who are not interested in the product can damage the company's image. Misdirected or unpersonalized sales messages can create the impression that the company has an unprofessional approach.
4. Increasing operational costs: As the quality of the database declines, the sales team will have to increase the volume of contacts to achieve the same results. This can lead to an increase in operational costs, including salaries, marketing budgets, and other resources used in the sales process.

Impact of costs depending on quality

When the quality of the database decreases by 1%, the costs of contacting can increase by approximately 5-10%. This increase occurs due to the additional effort required to compensate for the lack of relevance and accuracy of the data. Each irrelevant contact adds a new layer of complexity and additional costs, increasing the pressure on the sales team. Data from official sources has an accuracy of just over 50%, which makes operating with them expensive compared to a qualitative database. The costs of verifying and validating the information through the call center by ListaFirme are thus deducted from the operating costs of each beneficiary.

How much do you save?

Assuming two salespeople paid 6000 lei gross/month each, working with official data with ~52% accuracy, the same sales volume could be achieved by a single person in about three weeks using a monthly unlimited access package to accurate data (624 lei). The total savings exceed 59%. 20% better accuracy can double an agent's efficiency; ListaFirme's accuracy is ~40% above official data.

Conclusion

A high-quality, accurate and up-to-date contact database like ListaFirme's is essential for sales efficiency and long-term cost reduction. Incorrect, outdated or irrelevant contacts slow down the sales team's work and increase operational costs. Investing in quality data maximizes results and optimizes team efforts.