How to Master Contact Data Accuracy for Marketing Wins

You’ve probably heard it before: "Your CRM is only as good as the data in it." But what does that really mean for your business? In our recent LA HubSpot User Group (HUG) session, we explored the often-overlooked (but super important!) topic of Contact Data Accuracy with industry expert Karen Humphries Sallick—and trust me, this is a game-changer if you're looking to get the most out of HubSpot and your marketing efforts.

Let’s dive into why keeping your contact data clean can be the key to unlocking serious ROI.

Why Contact Data Decay Is Killing Your CRM

Imagine this: You’ve spent months building your email list, and now, you're ready to send out a vast campaign. But... 15% of your emails bounce. 😱 It turns out your data hasn’t been updated in ages, and you’re sending it to outdated addresses or catch-all inboxes that no one’s reading. This is data decay at its worst—silently eroding your ROI.

Here is a scary stat: 70.3% of B2B data decayed in 2023 (Forbes).

Emails bounce, people change jobs, and companies go out of business. And your marketing? Well, it suffers.

How Can You Stop Data Decay?

Here’s what you can do to keep your contact info fresh and avoid wasting your budget on outdated data:

1. Audit Your Data Regularly
   Set a schedule—quarterly is ideal—to review and clean up your database.
2. Use Data Enrichment Tools
   Tools like HubSpot’s Breeze or Contacts411 can help auto-update contacts with new information, ensuring you always have the latest details.
3. Adopt Written Standards
   Have a clear, documented process for data entry to avoid inconsistencies (we’ve all seen "John Doe" entered as "johndo@domain.com" 🙄).

Capturing Contact Data the Right Way

Most marketers are great at capturing email addresses, but here's the thing: email alone isn't enough. You need more than an inbox to build a deeper connection with your contacts.

🔑 Tip: Don’t Overload Your Forms
Sure, it's tempting to ask for everything upfront—name, company, job title, number of pets—but it’s important to strike a balance. Stick to essentials like first name, last name, and email for initial contact. You can always collect more info down the road.

🚫 Avoid Email-Only IDs
Using email as a unique identifier might seem simple, but what happens when someone switches jobs? Instead, consider generating unique customer IDs that aren't dependent on email addresses.

Retention Beats Acquisition—Here’s Why You Should Care

Did you know it’s 7 times cheaper to get an existing customer to buy again than to find a new one? Shocking, right? Yet, so many companies focus all their efforts on acquisition while ignoring the low-hanging fruit: customer retention.

Let’s break it down with a quick example:
Say you lose a top customer who spent $10,000 a year with you. To replace that lost revenue, you’d need 7-17 new customers (depending on your industry). That’s a lot of effort—and cost!

The good news? Accurate contact data ensures you're reaching your existing customers effectively and gives you the best shot at keeping them loyal.

Proving the ROI of Clean Contact Data

Now, let’s talk numbers—because if you’re not tracking your ROI, you’re flying blind.

Here’s a simple calculation:
For every 1,000 updated emails, with a modest 0.6% response rate and a customer value of $100, that’s $600 in revenue recouped just from having accurate email addresses. Multiply that across multiple campaigns, and it’s easy to see why accurate data is your best friend.

But the real kicker? SMS marketing. With a 98% open rate and 17x more revenue than email, using accurate contact data to send personalized SMS campaigns can turn a $600 email campaign into a $10,000 SMS bonanza. 🚀

Make Contact Data Accuracy a Habit

Improving your contact data isn’t a one-time task; it’s a habit. Here are some actionable steps you can take to get started:

1. Quarterly Clean-Ups
   Ensure your team or CRM tools regularly clean and update your contact lists.
2. Capture Key Data
   Always ask for first and last name—plus one reliable contact method (email, phone, or address).
3. Enrich and De-Duplicate
   Before uploading any lists into HubSpot, run them through a data enrichment tool to remove duplicates and add missing info.
4. Measure the Impact
   Track conversions, open rates, and customer retention to see how improved data quality affects your bottom line.

The Key Takeaways

• Contact data decays alarmingly, but regular audits and updates can drastically improve your marketing outcomes.
• It’s 7 times cheaper to retain a customer than to acquire a new one, and accurate data is crucial for retention.
• Small improvements in data quality can translate into big revenue gains through email, SMS, or direct mail.

Remember, your CRM is only as good as the data inside it. By keeping your contact info accurate and complete, you're not just sending out more effective campaigns but building stronger, longer-lasting customer relationships.

Watch the Presentation on Demand