While contact data management might not be the most glamorous aspect of running a business, it’s the backbone of effective communication, compliance, and growth. Accurate contact data fuels effective marketing campaigns, sharpens sales strategies, and speeds up recruitment processes.
Yet, as businesses scale, maintaining clean and reliable data becomes an increasingly complex and intricate task.
The challenge with contact data is that it ages like fish and not like fine wine. It gets worse as it gets older, not better.
A staggering 30% of all contact data becomes outdated annually, leaving companies scrambling to keep up.₁ The risks of bad data are enormous: wasted budgets, tarnished reputations, and missed revenue opportunities.
This article pairs eye-opening statistics with actionable insights to help businesses like yours harness the hidden power of verified contact information.
Why accurate contact info is a business must-have
Before diving into the intricacies, let’s address the elephant in the room: why should you care about contact data quality?
The importance of contact data hygiene
Think of contact data hygiene as housekeeping for your business’s digital contact directory. The “cleaning” process involves verifying and updating data, such as:
- Email addresses
- Phone numbers
- Job titles
- Company names.
Unfortunately, data decay is relentless, and 29% of companies describe their customer and prospect data as inaccurate.₂
Business realities:
- 23% of email addresses go stale each year.₃
- Up to 70% of B2B data becomes outdated within a year.₄
- 30% of employees in the US will change jobs annually.₅
If businesses don’t keep up with these changes, even the most sophisticated marketing and sales strategies will fall flat.
The consequences of inaccurate contact details
Poor data quality is a silent business killer, draining resources and undermining performance. Addressing it isn’t just about preventing losses – it’s about unlocking growth and ensuring your organization remains competitive.
Bad contact data is more than just an annoyance – it’s a financial black hole. Research shows poor data quality can cost businesses around 30% of their revenue.₆
Outdated and incorrect contact information can lead to:
- Financial losses: Misguided marketing efforts and failed sales attempts drain resources. Gartner found that the average company loses $15 million annually due to poor-quality data.₇
- Operational inefficiencies: Teams spend excessive time correcting errors instead of focusing on strategic initiatives. For instance, marketing teams spend 32% of their time on data quality management.₈
- Damaged reputation: Reaching out to incorrect or outdated contacts can harm a company’s credibility and email sender reputation. More than 1 in 5 businesses report experiencing reputational harm due to inaccurate data.₉
The impact of compliance regulations
Regulations like the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) have made clean data a legal necessity. Businesses must ensure that any personal data they hold is accurate and, where necessary, kept up to date, directly impacting how they manage their databases.
Mishandling or retaining outdated information could result in hefty fines. To illustrate, GDPR-related penalties reached over €1.5 billion in the first half of 2023 alone.₁₀
But data privacy compliance isn’t just about avoiding penalties – it’s about building trust with customers and stakeholders. By prioritizing data accuracy and transparency, companies can enhance their reputations and build stronger relationships with customers who value privacy.
How verified contact information affects key business areas
For marketing, sales, and recruitment teams, the quality of their contact data can make or break their outreach and campaign success. This is why:
Impact on marketing
Marketing is all about delivering the right message to the right audience at the right time. Without accurate contact information, even the most creative campaigns fail to connect.
Marketing campaigns count on clean data, sending to the wrong email address, using the wrong name, or targeting someone based upon an old job title is embarrassing and ineffective.
Email deliverability
Email marketing is the highest ROI marketing channel for businesses, but its success hinges on verified data.₁₁ Regularly cleaning and verifying contact lists can boost email campaign performance by 20%.₁₂ This is mainly because verified email lists improve deliverability and can reduce bounce rates by 90%.₁₃
However, research shows that 15.8% of emails are never delivered or are caught by spam filters.₁₄ Inaccurate data costs the average company $180,000 annually on direct mail campaigns that don’t reach their intended destination.₆
Case study: Achieving marketing success with verified data
A business communications provider faced issues with email deliverability and engagement. Their marketing team relied heavily on accurate data to run successful campaigns and nurture leads.
The challenge
- High bounce rates threatened sender scores, which were stuck in the 90–92 range.
- Risk of blacklisting endangered the effectiveness of email campaigns.
- Real-time data verification was needed across their CRM and marketing platforms.
The solution
The company implemented a real-time email verification system that cleansed contact data right at the point of capture, integrating it across their marketing tech stack.
The results
This verification system:
- Increased their sender score to 96, significantly reducing the risk of blacklisting.
- Improved campaign performance with minimal email bounces and higher engagement rates.
- Streamlined lead flow across platforms, eliminating redundant data cleansing.
These improvements helped the company connect effectively with customers and prospects.
Their measurable boost in email deliverability and marketing ROI demonstrates the power of accurate data for success.₁₅
Segmentation and personalization
Verified contact information also lets you segment your audience more effectively and personalize your marketing messages. By tailoring your content to specific job titles, industries, and company sizes, you can deliver more relevant and engaging experiences that resonate with your target audience.
Naturally, this translates into improved campaign performance. By personalizing your email content, you can:
- Boost open rates by 29%.₁₆
- Improve click-through rates by 41%.₁₆
- Increase conversion rates by around 8%.₁₇
Tools spotlight
Contact info sourcing and verification tools like Wiza are pivotal in maintaining data accuracy. Wiza’s Chrome extension reveals verified phone numbers and email addresses from LinkedIn profiles, eliminating hours wasted on manual searching. The accuracy of the platform’s information means you can expect bounce rates of less than 1%.
Additionally, Wiza helps marketing teams build highly targeted lists using advanced filters and data enrichment. This ensures every campaign starts with high-quality data.
Impact on sales
For sales teams, time is the most valuable resource. Wasting it chasing bad leads or working with incomplete data is a recipe for inefficiency. Worse still, it cuts into the time they can spend actively generating sales – and revenue.
People spend 60% to 80% of their time trying to find data. It’s a huge productivity loss.
Here are a few key insights:
- Over 40% of sales professionals consider prospecting the most difficult part of the sales process.₁₈
- This is partly due to the poor quality of leads, with 40% reporting this as a major challenge.₁₉
- Just 35% of salespeople trust the accuracy of their company’s data entirely.₁₈
- A sales rep typically only spends 39% of their time actually interacting with prospects.₂₀
Key statistic:
Organizations can lose up to 550 hours per sales rep due to inaccurate and outdated data. This equates to losses of around $32,000 every year.₆
Lead scoring
Fortunately, verified contact information eliminates these roadblocks. A clean and accurate lead database enhances lead scoring by providing up-to-date, actionable insights on prospects. These insights help sales teams target decision-makers instead of wasting time on outdated contacts.
It costs ten times as much to complete a unit of work when the input data are defective (late, incorrect, missing, etc.) as it does when the input data are perfect.
Sales cycles
When sales reps have access to accurate contact information, they can connect with prospects more quickly and efficiently. This can shorten sales cycles. In fact, an organized system for data management can cut down sales cycles by 8–14%.₂₁
Revenue
ROI is central to the success of any sales campaign. One study found a direct correlation between clean contact data and revenue growth. The right approach to contact verification can result in:
- A 20% improvement in lead-to-opportunity rates.₂₂
- A 20% spend increase from loyalty members.₂₂
- 60% more success in upselling and cross-selling.₂₂
Tools spotlight
Wiza is a great all-rounder for sales teams. Its searchable database, powered by LinkedIn, lets you quickly identify and research potential prospects. Contact information is updated in real-time, ensuring 99% email accuracy and 97% title accuracy.
With Wiza, you can also bulk export data from LinkedIn Sales Navigator to build targeted lead lists in no time. Its CRM integration ensures seamless data synchronization, keeping pipelines full of verified, actionable leads. Wiza integrates with most leading sales tools, including:
Impact on recruitment
Recruitment is another sector heavily reliant on accurate contact data, especially sourcing. Studies show that 31% of all hires stem from candidate sourcing.₂₃ This proactive recruitment strategy was more than twice as efficient than having candidates apply for a posted job.₂₄
Sourcing and finding people is very important. You can’t recruit, message, or network with someone you haven’t found.
The challenge of candidate sourcing
While more effective, sourcing isn’t without its challenges. 9 out of 10 hiring professionals find it challenging to source skilled candidates.₂₅ The average recruiter will spend one-third of their workweek on candidate sourcing.₂₆
This is where having access to reliable contact data becomes essential. Here’s what the numbers reveal:
- 28% of talent acquisition managers say that having access to valid candidate data is critical for improving outreach.₂₇
- Data-driven recruitment is twice as likely to achieve better hiring success.₂₈
- This approach is also three times as likely to lower the average cost per hire.₂₈
Time-to-fill
A well-maintained candidate database allows recruiters to quickly access accurate contact information, which can significantly reduce the time spent on outreach. This efficiency is vital in competitive job markets where top talent gets snapped up just 10 days after becoming available.₂₉
Candidate experience
Access to reliable contact data is also important for enhancing the candidate experience. It helps recruiters to engage potential candidates promptly and effectively. Research shows that the top reason candidates drop out of the recruitment process is poor communication from the hiring manager.₃₀
Candidate experience better be at the top of your list when it comes to priorities in your organization. Candidate experience is the new marketing.
Glassdoor reported that companies that invested in upgrading their candidate experience saw a 70% improvement in the quality of their hires.₃₁ Having verified information at your fingertips facilitates timely communication, which makes candidates feel valued and reflects positively on your company’s brand.
Tools spotlight
Building and maintaining a candidate database is that much easier with the help of the right sourcing tools. The most convenient solution is a browser extension that integrates with LinkedIn Recruiter. Wiza’s Chrome extension is a user-friendly option for finding phone numbers and personal email addresses from LinkedIn profiles.
Wiza streamlines the entire sourcing process with:
- Over 30 advanced search filters to build perfect-fit candidate lists.
- Various valuable data points to enrich profiles.
- Bulk exports directly to your ATS.
Soon, you’ll have all the info you need to connect with top talent quickly and make more informed hiring decisions.
Trends set to shape contact data collection and verification in 2025
These key trends are creating a stir in contact data collection and verification in 2025:
Rise of AI and automation in data management
Artificial intelligence (AI) and automation are transforming data management processes by streamlining operations and minimizing manual errors. AI-powered tools can analyze vast datasets to spot patterns and anomalies, ensuring that contact information is accurate.
For instance: Predictive analytics tools can flag outdated email addresses or duplicate entries, reducing bounce rates and wasted outreach efforts.
Recognizing its potential to enhance data-driven strategies:
- A resounding 93% of marketers are investing in AI.₃₂
- 86% are increasing their budget for AI tools in 2025.₃₂
- Around 73% of sales professionals say AI reveals insights from data they wouldn’t have otherwise found.₃₃
Automation is especially helpful in talent acquisition. Automating data collection through AI-powered recruiting software allows you to gather and store candidate info from:
- Job boards
- Social media
- Referrals
- Your website.
It saves time, cuts down on mistakes, and helps you reach more candidates. For example, you can embed forms on your site to collect candidate details straight into your database.
Focus on real-time updates
The days of quarterly database cleanups are numbered, and dynamic databases are becoming the norm. Modern teams are adopting real-time verification tools that validate phone numbers, email addresses, and mailing information at the point of entry.
Key statistics:
In-depth research found that 80% of companies generated more revenue from real-time data updates and analytics, and 62% reported more efficient business processes.₃₄
Some services perform instant verification during lead capture to ensure data quality from the outset. Recruitment platforms, in particular, will adopt these tools to streamline applicant tracking systems and reduce manual errors. It’s like having a self-cleaning oven for your contact database.
In a highly competitive talent environment, automating data collection isn’t a luxury. It’s a necessity that enhances both the reach and accuracy of your recruitment process.
Increasing importance of data privacy and compliance
From 2021 to 2022, GDPR increased their annual fines by 594%.₃₅ With global privacy regulations tightening and penalties looming, companies are radically reshaping their data collection strategies.
Businesses are shifting their focus from third-party to first-party data – information collected directly from customers. In the marketing sector, 82% of companies plan to increase their use of first-party data.₃₆ This transition not only enhances data accuracy but also fosters trust between companies and their audiences.
Trust is the new currency in marketing.
Here are a few key statistics reflecting the importance of gaining customer trust through data protection:
- Data privacy is a growing worry for 86% of customers.₃₆
- 68% of consumers express concern over the extent of data that businesses collect.₃₆
- 8 out of 10 people believe that the way a company handles their personal data reflects how they view the individual as a customer.₃₅
- 91% of consumers say they would buy from a business they trusted.₃₇
- A third of customers have paid a premium simply because they trust the company they’re buying from.₃₇
If you are hunting for missing data, or worse yet, using incorrect data, you are reducing the impact of your revenue-generating activities.
Clean, accurate, and enriched data:
- Drives efficiency
- Improves ROI
- Enhances customer experiences
- Ensures compliance with ever-evolving data regulations.
As AI continues to evolve, privacy regulations tighten, and business relationships become increasingly digital, your commitment to contact data quality is more than an investment in your database – it’s an investment in your business’s future.
Commonly asked questions and answers
How does poor contact data quality impact ROI?
Poor contact data quality has a ripple effect on a company’s bottom line. It can impact revenue in several ways:
- Wasted marketing spend from high bounce rates and low engagement.
- Missed sales opportunities due to the inability to reach potential customers.
- Damaged brand reputation as a result of poor email deliverability and negative customer experiences.
- Increased costs associated with data cleansing and remediation efforts.
- Data violations result in significant compliance penalties.
How can I optimize my approach to contact information verification?
Start by implementing a three-pronged approach:
- Implement real-time, user-friendly verification tools to continuously validate contact information directly from LinkedIn profiles.
- Implement data governance policies that establish:
- Standard data entry formats
- Regular verification schedules
- Clear ownership and accountability.
- Leverage integration capabilities to ensure verified data flows seamlessly between your:
- CRM systems
- Marketing automation platforms
- Recruitment tools
- Communication channels.
How often should businesses verify and update their contact databases?
Given that 30% of data decays annually, businesses should aim to verify and update their contact databases at least quarterly.₁ For organizations in fast-moving industries like tech or sales, monthly updates may be more appropriate to keep pace with frequent changes in job roles, company details, and contact preferences.
Automated tools like Wiza can make these updates seamless by continuously validating and enriching data in real time, reducing the manual burden on teams.
What are the key trends in contact verification technology?
Several key trends are shaping contact verification technology in 2025:
- AI and automation: Businesses are increasingly adopting AI-driven tools to automate contact verification, reducing human error and improving speed.
- Real-time updates: Dynamic databases that update in real-time are becoming the norm, helping businesses avoid using stale or outdated contact details.
- Privacy and compliance: With GDPR, CCPA, and other regulations, companies are adopting stricter practices to ensure data accuracy and protect consumer privacy.
- Data enrichment: Modern tools focus not only on verification but also on adding value through enriched data fields. This helps businesses to target audiences more precisely.
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