As a sales person you’d never recommend that your prospects make buying decisions based on pricing. So why would you do that for your business? Database software – or databases of contact information – can deliver amazing results. But inferior products that don’t deliver what you need might end up costing you more in the long run, and here’s how:
You’re going to have to replace it sooner than you want to
This is the most important point in all of this: when you buy the wrong business database software, you find out (quickly) that you need to replace it with something that works. It’s better to pay once, even if it’s near the top of your budget, than pay for the cheapest platform, implement it and train your teams on it — and then find it doesn’t accomplish the things you bought it to do. When that happens, you can either wait for your contract to expire — which might cost you hundreds of thousands of dollars in missed sales — or you can pay to bail early and then pay a few dollars more for the tool that will give you a realistic shot at those sales.
It doesn’t play well with systems you already have
Missing functionality that means you’re approaching prospects that you won’t be able to qualify, while lack of integration means have to spend time exporting from your sales intelligence software into your CRM.
Not all sales intelligence software is created equally, and unless you can filter the thousands (or tens of thousands) of names and numbers in a way that’s meaningful to you, your software isn’t improving your life very significantly. You probably already know you want to sort by planning period, or budget, or budget by specific channels, or by geographic location, job title, function or any number of other criteria. And your database software might offer some of these, but those filters are worthless if the data they’re filtering isn’t accurate.
You might not be able to trust the data
But let’s assume you do trust the data in your business database software – let’s say you use The List (or its younger sibling, Winmo) for expert-level prospecting. You know that its entire database every 120 days, and yes, that sounds like an expensive undertaking, which is why cheaper alternatives don’t verify their data with the same frequency – and many may not have humans checking and correcting data at all.
According to the State of Inbound 2016 report by HubSpot, 40% of salespeople say that getting a response from prospects is getting harder every year. This makes it much more important for salespeople to find the prospect they’re looking for quickly, because all that time spent not getting responses from prospects who aren’t really prospects is wasted, and delays you getting to the actual decision makers you need to reach.
Accurate data is the most important criteria when you’re scoping out your business database software purchase. It’s the foundation you build the rest of the purchase decision on. Inaccurate contact information means you won’t find the person you’re looking for, resulting in more time in non-sales activities that don’t generate revenue.
Every second counts for your outreach
Accurate data that gets you to your decision maker quickest is important because, according to InsideSales.com, the first vendor to respond gets the sale 35-50% of the time. So even if you do eventually reach the decision maker you’re looking for, they may have already started working with another vendor.
If you add all this up, when you buy on price and aim for the lowest cost, what you might actually get is inaccurate contact information; no ability to refine your contact lists; poor integrations; and a high likelihood that when you dial you’re not reaching the person you’re trying to find.
Does that sound like a product you’d be comfortable selling? So why would you ever consider buying it?