The Problem With Fragmented Data in the Foodservice Industry

15 May

As most of you know, data is a very important resource for many businesses. Whether organizations have an internal database or purchase external lists, one of the main things that businesses need to be wary of is having fragmented data. Time and time again, you hear stories about companies that have wasted money as a result of an ineffective direct marketing campaign. The culprit: bad data. Today, businesses are still using this “spray and pray” approach, essentially blanketing a specific geographic area using off-the-shelf and untargeted industry data. This has two major problems:

• Low ROI
• High operating costs

The use of incomplete and fragmented data creates a cyclical effect that negatively impacts marketing costs and lead-generation opportunities. This results in lower sales revenue and profitability. Foodservice providers that continue to use the spray-and-pray method for their industry sales and marketing campaigns also experience one or more of the following outcomes:

1. A Failure to Track Industry: Turnover — The inability to track industry turnover means that lead/
contact information does not reflect new or closed vendor locations and ownership changes, resulting in an inaccurate assessment of overall market penetration.

2. A Lack of Segmentation — The inability to gain access to segmented market data causes an inability to drill down and filter that data to find highly targeted prospects and construct more effective sales and marketing campaigns.

3. An Incomplete Census — Incomplete or inaccurate market data also translates into an inability to fully comprehend the entire lead-prospect
population. Today the majority of food industry marketers can accurately identify only about 10 percent of their entire target market.

4. Fragmented Data — The use of fragmented and incomplete data across multiple information sources
means that foodservice industry providers are unable to generate a single, complete, and uniform database to
effectively produce programs that will lead to higher sales and greater bottom-line profitability.

The result is operational ineffectiveness that increases operating costs, creates unproductive sales and marketing staffs, and misses important business opportunities that could have led to higher revenues. To learn more about the challenges with foodservice industry data, download our white paper, “Overcoming the Business Challenges Associated With Inadequate Foodservice Industry Data.” Click here.

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