Few will argue with the premise that the more high quality, accurate customer data you collect and activate, the more likely it is that you have a robust, growing sales pipeline. More data by itself is not necessarily better, because you might be adding low quality, poor fit leads to your pipeline. But a steady influx of high quality leads is at the top of nearly every sales and marketing organization’s list of priorities. The amount and quality of your leads is an indication of success in demand generation, SEO, sales development, and other lead acquisition strategies. The question is, how can you build that kind of pipeline and keep it growing in a healthy way?
In case you don’t read Latin, that phrase means “where have we been?” Within the past 10-15 years, B2B lead generation has been largely an inbound phenomenon, with content marketing, SEO and paid search leading the way. More outbound tactics, such as cold calling from rented lead lists and generic display advertising are still deemed to be more effective in B2C and somewhat more limited in B2B. With the resurgence of account-based (ABM) strategies, however, highly targeted outbound, including long deprecated tactics, such as direct mail, have gained a new foothold.
Still, most of us continue to rely on a single source of leads, our own data collected from a variety of inbound and outbound channels. The popular term for this is “first party data”. In principle, this data “belongs to us”, because it’s collected by us, leads (usually) volunteer their contact information through forms or other types of subscription, and we manage the data through our own CRMs and marketing automation platforms. How we use the data is another matter. I’ll leave the debate over data privacy and ownership for another day, but typically what we do is employ various methods to engage with our collected leads and attempt to nurture them into becoming loyal customers.
The next question is, is that enough?
I’ve already mentioned a couple of advantages of first party data. Technically, leads are owned and controlled by you, with exceptions dictated by both international and domestic laws, ethics, and terms of use. Perhaps most importantly, leads are sourced by you, which means that they have taken one step to connect with your digital properties, i.e., they are interested in you in some way. In marketer’s speak, they have entered the top of the funnel. Some other strengths include:
How about first party data weaknesses? Let’s review:
Do imported leads count?
Technically, imported leads fall under the same physical controls as do inbound leads, if you import them into a lead management system, but they aren’t necessarily “opted-in”. You may be restricted in how you can engage with them without violating email regulations or risking unsubscribes or spam reports. Still, it depends on how your imports were collected and how you reach out to them. If they signed up for follow-ups at a trade show or met you at a bar, they may be fully opted-in, legitimate sales leads. If you obtained them in bulk from a third party, that may be a different story. In either case, it’s safer, but less efficient, to reach out to them individually than to contact them in bulk.
Rising in popularity among sales and marketers “in the know” are third party intent data sources. This is data collected beyond your borders, i.e. on the open Internet without any direct engagement with your brand. Think about people who are interested in the problems you address and are in search of solutions, on search engines or social platforms. They are typically earlier in their buyer journey and may only find your brand after an exhaustive search, which comes later. So that’s the first big advantage, but let’s look at some other important benefits:
Now, let’s consider some of the potential weaknesses of third party data:
As you can see, both first party and third party data have strengths and weaknesses. The cool thing is, the pros and cons are largely complementary. First party data provides immediate connection, fit, and urgency information to your sales team. Third party data fills in some of the missing important gaps in the buyer journey (especially, early and late). In combination, they provide a more complete prospect or customer profile that can be leveraged for more effective sales calls and marketing campaigns. Here are a few use cases that specifically benefit from combined data sets.
These are just a few of the practical applications of multiple data sources in marketing and sales acceleration. Nowadays, you can’t afford to just stay home (in your websites and social media pages) and wait for people to come to you. It pays to be expansive in your data collection and analysis and deployment to a variety of outreach and lead management platforms. As long as you are mindful and respectful of privacy laws and policies, you can’t go wrong by learning more about your prospects customers as early as possible and staying current throughout their journeys.
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