Comparing data sources and the benefits of using a data exchange platform
The amount of data available at an organization’s fingertips is increasing at a dramatic rate. It’s estimated that 463 exabytes of data will be generated around the world every day by 2025.
It’s driving major business decisions from financial to marketing and will only get more complicated with time.
One of the major concerns with data usage is the source. Between first-, second-, and third-party options, there are endless sources to obtain information. Not all, however, are created equal.
Data exchange platforms and single data sources are just two examples. The quality, consistency, and relationship with these sources varies greatly. Understanding the differences between them and how each can address the needs of your business will help you make the right choice.
Data exchange platform
A data exchange platform facilitates the buying and selling of data through data partners. These partners are vetted to ensure the quality of their information. The information is then filtered and stored in a searchable database with various categories.
Single data source
A single data source gathers and publishes the information on its own. There is usually no third-party vetting or filtering process to ensure the accuracy of the data.
Data exchange platform vs. single data source
There are some key differences between these two sources that can greatly affect your marketing efforts.
It’s pretty simple: Maintaining a relationship with one data exchange platform that has access to millions of data points is simpler than maintaining a relationship with as many data sources as necessary to cover all of your needs.
This simplifies the lives of the employees managing this relationship, the marketing team using the data, as well as HR and payroll. It also makes a difference with support. If the team needs assistance or has a question about navigating the information, it’s easier to get the answers you need one time rather than trying to hunt them down in multiple places.
Many organizations have a major issue with data consistency. Using multiple single data sources can create a mess if not managed properly. Pulling the necessary information and transferring it to the correct platform and format leaves a lot of room for error. There has to be a standard for the verification, transfer, storage, and usage of this data.
There is also a major issue in many organizations with using a single source of truth, meaning everyone is relying on the same data. Without it, teams may be on completely separate pages, making inconsistent decisions, and having a different understanding of the truth.
Single data sources simply increase the possibility of such problems occurring, because there are more factors to consider. A data exchange platform does the legwork for you by consolidating data from multiple sources, verifying it, and putting it into a consistent format. Teams can work off of the same information rather than researching on their own and coming to different conclusions.
Poor-quality data can be extremely costly for businesses. Using bad data to inform a big marketing campaign or sales strategy can cost millions of dollars in revenue, manpower, and reputation.
Gartner estimated that the average business lost $15 million in 2017 due to bad data. Not only is time wasted for the employees who used the data to create marketing initiatives, but it also has an impact on a brand. Getting a message addressed to someone else or receiving an ad that is irrelevant makes a customer question the company and its loyalty to them.
It’s very difficult for an organization to verify the methods and results of every single data source they use, which means a lot of the data they are gathering could be false or embellished. Data exchange platforms use trusted providers who are vetted before being allowed inside. The platform can then analyze data across multiple sources and verify its accuracy.
The BDEX difference
BDEX is a data exchange platform that processes over a billion data points per day from hundreds of sources. Over 5,500 categories of data allow customers to search for almost any data they need.
Many companies use the same consumer data from the same source, which means they are marketing to the same potential customers in the same way. Much of this information is outdated or inaccurate, which is even worse.
BDEX collects real-time data from its providers to build the most current database available. It also uses that data to build a historic timeline of customers’ actions and behaviors so companies can create more accurate customer profiles.
This goes beyond surface-level demographic data. BDEX’s Omnisource IQ DaaS gives companies the opportunity to be in front of customers who fit within their ideal target audience exactly when they’re looking for a product or solution. This data also empowers a new level of connection. When companies know a little bit more about an individual, they can serve them a more personal message.
BDEX covers dozens of industries and offers thousands of categories, including interests, intention, purchase history, and audience group. All data points are cleaned to validate, update, and standardize customer information.
Doing the same for single data sources requires serious time and resources. A data exchange platform like BDEX can give your organization access to over a trillion data points with a single source of truth and the knowledge that you are using the best possible information.
Contact us today to learn more about the BDEX platform, the industries we serve, and how we can boost your marketing efforts with high quality real-time data.