It has become clear over the last decade or so that data holds within it a huge amount of power. In fact, data has become one of the most important strategic assets for any business. Data holds the key to sales and marketing strategies, customer demographics and other vital information about the people who interact and engage with your business. And yet it is also true that not only do many businesses not understand the power of their data, but they also fail to keep it up to date. Although powerful, data deteriorates and can become useless in as little as three years. In an age where marginal gains over your competitors in financial services marketing can make the difference between success and failure, can your business really afford to let this advantage go?
Using data that has deteriorated can be as bad as not using data at all. With financial sector employee turnover rates reaching up to 22.7% in 2023, according to the CIPD. Close to 1.5 out of every five data points could become incorrect after just 12 months unless they are regularly cleaned and updated. That means a lot of wasted time, energy, effort and expense. In this article, we will explain five key reasons why keeping your IFA data updated is essential.
Improved Targeting
A regularly updated financial advisor database allows you to carry out precise sales and marketing efforts. Having access to clean data ensures that any communications you put out there reach the most suitable financial advisors. This can enhance engagement with the right kinds of contacts and help to get positive conversions started. If your data is degraded, then your leads will be harder to track, and potential intermediaries will be much harder to engage. Imagine wasting up to 22% of your sales and marketing time chasing contacts that may not even exist. Work smarter, not harder. It’s a cliché, but when it comes to data, it makes perfect sense.
Data Alignment
The Data Protection Act outlines that any data being kept by a business must be up to date, where necessary. As such, keeping your data current helps you to meet legal obligations. This reduces the risk of penalties for using outdated or inaccurate information. In addition, making sure your data is clean and only shows what each record is supposed to show means it will be easier to check for accuracy and compliance. This can help to keep data compliance costs down.
Increased Efficiency
Accurate data minimises the time your staff spends searching for contacts or correcting errors. This allows your team to focus on more strategic tasks and helps to reduce overheads and costs. With cleaner data, it is much easier to see how your marketing and sales strategies perform best using analytics. Essentially, accurate data helps you to see what the business is doing right and what it is doing wrong, improving overall productivity and efficiency.
Better Customer Relationships
Successful businesses are built on good relationships – with intermediaries and other stakeholders. By keeping your data up-to-date, it is easier and less time consuming to foster stronger relationships with financial advisors. This in turn leads to improved trust and loyalty, feeding back positively into the business.
Data Quality Insights
Data is like a mirror, reflecting what is going on in markets and the wider world of business. Regular updates and clean data help you to identify trends and changes in the market. This in turn will enable better decision-making and strategic planning. When your strategy is based on reliable data, rather than outdated information, it stands a much greater chance of being successful.
Get a free CRM audit or speak to a member of our team to find out more about why having an accurate list of independent financial advisors in the UK can help your business grow.
Image Source: Canva