LA HUG - October 2024 - Contact Data Accuracy

Boost your HubSpot ROI with expert insights into the accuracy of your contact data. Learn how mastering contact data accuracy enhances customer retention, increases sales, and drives marketing success. Discover actionable strategies to overcome contact data decay and improve marketing ROI with better touchpoints and reactivations.

1. LA
HUG

2. 11:30 AM – 1:00 PM
Boost your HubSpot ROI:

Mastering Contact Data Accuracy
for Marketing Success

3. Agenda
Introduction and Overview
The Dilemma of Contact Data Decay
Contact Information Capture Best Practices
Value of Customer Retention versus Acquisition
Calculating Impact on Sales
Marketing ROI Improvements Key Takeaways
Remaining Questions

05 MIN
10 MIN
10 MIN
15 MIN
15 MIN
10 MIN
15 MIN

4. Introduction and Overview
35 Years CRM and Marketing
Program Creation
●Built my first customer database in
1989
●Business requirement lead for first
ever desktop direct mail
segmentation tool
●Started two CRM services companies
(both still around)
●Co-taught the first CRM class at NYU
●Created Contacts411 to ensure small
businesses can have the best quality
customer contacts

5. Introduction and Overview
We all know marketing is critical to driving sales but think about
the following:

●Customers are the lifeblood of every business
●You cannot sell to a customer you cannot reach
●Enterprise companies know CRM is a cost of doing business
●The foundation of every successful enterprise CRM is
consistently updated and enriched customer contact info
●Are you keeping your customer contact data up to date?
●Do you know how much outdated information is costing
you?

6. Introduction and Overview
Important numbers you should know:

●7
○Its 7 times cheaper to get an existing customer to buy
again than to get a new customer to purchase
●10
○It typically takes 10 new customers to replace a lost
top customer

7. The Dilemma of Contact Data Decay
The Dilemma of
Contact Data Decay
Decay is when information becomes obsolete or incorrect
overtime.

Data decay can impede operational efficiency, create
missed opportunities, and cause substantial revenue loss.

8. Contact data is dynamic
The Dilemma of Contact Data Decay
Over 15% of emails
sent are sent to
catch alls.

This number is
different depending
on age group.


Business contacts
change annually
1
Forbes reported
B2B data decay
was 70.3% in 2023.
2
26%36%50+%

1
Chamber of Commerce Small Business Statistics
2
Forbes, Sean Shea, 4/24
Consumer contacts
change annually
3
Of Emails became
invalid in 2023
4
3
Census Bureau Consumer Statistics
4
Zero Bounce

9. The Dilemma of Contact Data Decay
You Cannot Sell to a Customer
You Cannot Reach
●Average US citizen moves 9 times
after they turn 18
1
●Millennials move every 1.7 years on
average, mostly for a job
2
●5.5 million new businesses created
in 2023 and 5 million in 2022
3
●47% of small business owners run
their own marketing
4
1
USPS
2
Census Bureau Consumer Statistics
3
Small Business Administration
4
Fundera

10. The Dilemma of Contact Data Decay
●Regular data audits and cleansing (min. quarterly)
●Written data entry standards
●Data enrichment, hygiene, and validation
●Regular back-ups
●Lean on professionals
How can you combat contact
data decay?
Forbes April 2024

11. Contact Information Capture Best Practices
Contact Information
Capture Best Practices
What information should you gather and keep?

The contact data captured initially impacts your
business’ ability to reach a customer overtime?

12. Contact Information Capture Best Practices
Not enough
Email alone will not help you stay in
touch and convert a prospect to a
buyer as well as first name, last name,
and email.

Nor will it help you understand the
customer’s full engagement with your
company.

13. Contact Information Capture Best Practices
Too Much
Don’t ask for more information that you
are actually going to use or have the
capacity to protect well.

Don’t use email as the customer unique
ID if at all possible.

Get an opt in at the same time
whenever you can.

14. Contact Information Capture Best Practices
Just Right
…that depends
First name, last name, one contact
method at a minimum

How will you communicate?

Is this a prospect?

Is this a customer?

15. Data Capture Best Practices
●Consistent data entry guidelines used by entire team
●Always ask for first and last name and get at least one way to
contact them - email or phone or address
●If getting address, separate the address components
●Check to see if the customer is already in the database
●Clean and enrich lists before putting them into HubSpot or
any CRM
●Enrich, update and de-duplicate at least quarterly
●Keep customer data in ONE PLACE with unique ID
●Ensure you are CCPA compliant
Other important best practices are…

16. The Value of Retention Versus Acquisition
The Value of Retention
Versus Acquisition
It’s 7 times cheaper to keep a customer buying than to get a
new one.

Improving your retention rate by 5% can increase profits
25-100%,

17. The Value of Retention Versus Acquisition
Existing Customers Spend
More Than New Ones
Actual example of annual
spending by location.

There is a strong
correlation between
better customer contact
capture and existing
customer sales.

18. The Value of Retention Versus Acquisition

How Retention Impacts
Profits
Customers who have purchased from
you are:
●Less price sensitive
●Significantly more likely to buy
again
●Will tell others about you
●They spend more
Reichheld/HBS Study 1990

19. The Value of Retention Versus Acquisition

Replacing revenue from 1 lost
customer in the top 5% of
spending customers for this
company meant:
●7 new customers need to
spend at the overall
customer average
OR
●17 new customers at the
value of the bottom 80%
of customers
Why is retention so important?

20. The Value of Retention Versus Acquisition

●Overall cost of acquistion is over $500
●A June HubSpot blog quoted FirstPageSage with
○B2B CACs ranging from $86 in eCommerce to $1,143 in Higher
Education
○B2C CACs ranging from $68 in eCommerce to $506 for treatment
centers
●A Shopify Blog from July 2024 gave CACs for eCommerce ranging from
$21 for Arts & Entertainment to $377 for electronics
Acquiring a New Customer Is
Expensive

21. The Value of Retention Versus Acquisition

Lose 1 top customer, need 7-17 new customers to replace
the revenue
●For a $500 CAC, you need to spend and extra
$3,500-$8,500 per lost customer
●For a $70 CAC, you need to spend $490-$1,190 to
replace the revenue from the one lost customer
Simple Retention Math Example

22. The Value of Retention Versus Acquisition

●Know your estimated CAC
●Make sure you have a basic retention strategy before you spend money
on customer acquisition
●Remember that acquisition contact information gets old too
●One and done customers only work if the first purchase value is more
than the cost of acquisition

Important to Consider

23. Calculating the Impact on Sales
Calculating the Impact
on Sales
Accurate contact information has a significant impact on
sales through retention, customer experience, and the ability
to communicate new products.

Data decay can also impairs operational efficiency

24. Calculating the Impact on Sales


●Email conversion drops 20% due to bad data according to HubSpot
●44% of respondents to a Forbes study published in April say they lose
10% of revenue do to data decay
●HubSpot quoted an HBR study that inaccurate contact information
leads to missed marketing opportunities, reduced customer
engagement and 12% lower sales annual
●Surfe concurred saying “Businesses lose 12% of their revenue annually
due to ineffective data management.”

How Can Contact Data Decay
Affect Your Revenue?

25. Calculating the Impact on Sales


●Recency - new email looks like a new customer, not a recent repeat
purchase of an existing customer
●Average customer value - is inaccurate because customers have
multiple emails, addresses, and phones
●Top customers - go unrewarded, unthanked or worse, uncontacted


Key CRM Stats Become Inaccurate

26. Calculating the Impact on Sales


●More accurate customer value
●Better targeting and personalization
●Building trust with the customer with
accurate communications



Benefits of Complete and
Accurate Contact Information

27. Calculating the Impact on Sales

More Revenue
- a Simple Calculation
For every 1,000 updated and validated
emails

At a 0.6% response rate

And $100 per responder

You get $600 in recouped revenue for
every communication

28. Calculating the Impact on Sales

Simple Spreadsheet

29. Calculating the Impact on Sales


What is it?
●First name, Last name
●Email, Phone, Address
How do I get it?
●Addresses from emails
●Addresses from phone numbers
●Emails from addresses
●Emails from phone numbers
●Phone numbers from addresses
●Phone numbers from emails


Complete Contact Data Ensures Better Sales

30. Calculating the Impact on Sales

Why do I need complete
contact information?
●Location specific marketing
●Multiple touches increase response rate
●Multiple channels of communication increase
response rate
●Direct mail is making a comeback with
younger buyers

31. Calculating the Impact on Sales

Direct Mail versus Email
●Email response 0.6%
●Direct mail for prospects 2.9%
●Direct mail for customers 5.3%

So
●$600 from 1,000 new emails
●Becomes $5,300
Neil Patel Blog

32. Calculating the Impact on Sales

SMS versus Email
●Better open rate: 98% vs. 20%
●Increased CTR: 6.1% vs. 2.6%
●Better conversion: 29% vs. 15.2%

AND
●17x more revenue
●So that $600 generated from emails could be
$10,000
Subtext Article Feb. 2024

33. Marketing ROI Improvements
Marketing ROI
Improvements
Improving ROI takes knowing the specific ROI
for different types of communication for your
business and then reaching your customers.

34. Marketing ROI Improvements

Your customers
return the best
marketing ROI
Emailing or direct mailing your
customers has the highest ROI

Email followed by direct mail
increases brand recall by 40%
1

Once you have spent to get a new
customer, be sure to continue to
connect to improve LTV

1
Lbox Sept 2023

35. DATABASE
CONTACTS
PRIMARY
MARKET
SUGGESTED
METHOD
BEST FOR: ANNUAL
COST EST.
> 1,000 Consumer
or Business
Manual Individual Sales Small Scale
Direct human reach out, one at a time updating before sales call
TIME
100 -
1,000,000
Business

Breeze
(HubSpot
beta)
Firmographic Information and Social Media Links
Enriching with company information to help with targeting and
segmentation, validating email - direct integration with HubSpot
$360 to
$8,400
$5k once
1,000 -
300,000

Consumer or
Business
Contacts
411
Individual Specific Contact Information
Adding and validating emails, phone numbers, addresses for
consumers (CCPA compliant) and business individuals with role
$180 -
$3,120
500,000+Consumer or
Business
Data AxelLarge Custom Database with IT Staff
Acquisition records, updating and enriching existing contacts as
well as firmographic, demographic, and social media tags
$100,000+
Marketing ROI Improvements

HOW: Contact Clean Up and Enrichment Options

36. Marketing ROI Improvements



Key Steps
1.Consistent and accurate contact information capture,
always with first and last name and opt in
2.Consolidate, enrich and update at least quarterly
3.Send a thank you after a purchase
4.Communicate to more valuable customers in more ways
to improve retention
5.Track and measure

37. Marketing ROI Improvements



Key Takeaways
●Contact information decays at 25-70% annually
depending on the type of information
●The more contact information you have the easier it is to
keep it up to date and have an accurate view of your
customer
●7 times cheaper to get an existing customer to buy than
to get a new customer to buy
●10 new customers are needed to replace a top customer

38. Marketing ROI Improvements



… A Few More
●Customer contact updating can help you stay in touch
with 30-70% of the customers you might otherwise lose
●Know how much revenue communicating to 1,000
customer that you could not reach before will generate
for you

39. Thank you
Contacts411 discount for attending: LAHUG25

25% discount off your first subscription
code valid until 12/31/24