DiscoverOrg Data Quality Put to the Test

DiscoverOrg contact and firmographic intelligence displayed within SFDC.
DiscoverOrg contact and firmographic intelligence displayed within Salesforce.com.

Sales Trainer Steve W. Martin recently ran an independent study of DiscoverOrg contact data quality which found that the vendor lives up to its high quality data claims and SLA.  According to Martin, “DiscoverOrg had no foreknowledge that I was measuring their data accuracy and no influence over the sample data set I used.”

Martin randomly selected 100 contacts from a file of 10,000 and conducted the study himself.  He evaluated seven fields and found very high data quality levels:

  • Full Name Accuracy was 99%, including spelling.
  • Contact Company name was 98%
  • Title Accuracy was 96%
  • LinkedIn URL accuracy was 97%.  The three contacts that lacked LinkedIn URLs confirmed that they did not have LinkedIn profiles.
  • Seniority Level accuracy was 100%
  • 97% of the emails were deliverable with only a 3% bounce rate.  As contacts decay at a 2% rate per month, 97% is at the upper end of expectations.
  • Twitter Handles were correct 100% of the time, but only 10% of the contacts had the field populated.

With the exception of Twitter handles where there is likely a significant underpopulation of the field, the dataset lived up to its 95% SLA and data quality claims.  It should be noted that Martin did not evaluate DiscoverOrg’s technographics, org chart relationships, responsibility data, or event alerts.  These are other areas where their editorial data distinguishes the firm.

“This study confirms what I have personally heard from a wide cross-section of the technology companies I work with,” said Martin.  “DiscoverOrg provides highly accurate contact data. In addition, this study was based on a small subset of the data that DiscoverOrg provides. Of primary importance to my clients are the detailed IT organization charts, the identification of the different technologies installed, recent trigger events such as personnel changes, and the direct phone numbers of contacts.”

These types of studies are often expensive to conduct and difficult to construct when comparing vendors.  I performed similar studies as internal benchmarks when I worked at OneSource (now D&B Hoovers) and for clients since becoming a consultant and no vendors approach this level of data quality (Note: I have never evaluated RainKing which utilizes similar data collection methods).  What is clear is that the smaller universe, editorially-crafted DiscoverOrg file of 60,000 companies and 1 1/2 million contacts clearly has higher contact data quality than other vendors (again, excluding RainKing).  When discussing DiscoverOrg and RainKing with clients, I describe them as using traditional artisanal research methods which entail focusing on a smaller universe of companies and contacts at these companies.  This approach makes for a strong fit for firms employing an ABM approach to target large accounts, but may be insufficient for more transactional marketing approaches which are more sales development and demand generation focused.  Both cost and lack of coverage of SMBs would be issues at those firms.

“Bad data is costly and can be the single point of failure in an otherwise successful campaign,” says the firm on their website.  “We don’t just pay lip-service to the quality of our data. We contractually guarantee it. We know that success in every sales and marketing effort begins with highly accurate, verified data that your team can trust.”

What is clear is that this quality-centric approach to gathering data has proven successful.  Both RainKing and DiscoverOrg have high growth rates and regular Inc. 5000 membership.  DiscoverOrg closed last year with $71 million in annualized recurring revenue so is almost assured of making the Inc. list for the seventh year in a row.

Martin published his results online as a PDF.

SLA: Why Special Libraries Aren’t So Special Anymore

SLA LogoI attended the SLA (Special Libraries Association) meeting two weeks ago in Philadelphia.  I had skipped the meetings for a half decade but returned last year when it was in Boston (where I live) and again this year in Philly (cheap, one hour flight).  The show is much smaller that it was ten or fifteen years ago when it would be packed at the Jacob Javits center in New York City.  There are fewer attendees, fewer exhibitors, smaller booths, and less energy.  This is probably the case for most trade shows which are not industry events (e.g. Dreamforce).  Fifteen years ago, when I was at OneSource (now Avention), vendors timed product releases for the SLA show.  That is no longer the case.  Sales Intelligence vendors now ignore the SLA and time their release calendar around Dreamforce.

SLA Attendee Statistics from the 2016 Exhibitor Prospectus
SLA Attendee Statistics from the 2016 Exhibitor Prospectus

The show itself has always been a bit of a hodgepodge with STEM, Legal, Financial, Business, News, and other vendors providing databases and research tools for corporate, academic, and research libraries.  But two decades ago, corporate libraries were either closed or their budgets were slashed.  Centralized repositories made less sense as information delivery shifted to Internet browser and API-based workflow tools.  Nowadays, few corporate libraries are involved in buying business research tools and, when they are, it may be more as an influencer than a buyer.  According to the 2016 Exhibitor Prospectus, only 7% of the attendees were corporate.  Even if you add in financial services, insurance, and consulting, only one in six attendees was a likely buyer of business information databases.

Half the attendees were librarians or library directors, but two decades ago, budgets and decision making authority shifted away from corporate libraries due to the Internet.  This was a precursor to the current shift of purchasing authority away from IT to functional departments caused by the cloud.

I didn’t write about the SLA at the time because I was on the exhibitor floor when one of the vendors mentioned that Microsoft acquired LinkedIn.  This was one of the biggest transactions impacting the sales intelligence space (LinkedIn Sales Navigator is the largest revenue sales intelligence vendor and Microsoft Dynamics is the second fastest growing CRM) and neither vendor was at the show.

Nor were LinkedIn’s competitors in the recruiting, marketing, social media, and professional subscription services spaces.  Not many sales intelligence vendors attend the show anymore.  You used to see Dun & Bradstreet / Hoover’s / First Research, Zoominfo, OneSource (now Avention), and Sales Genie along with many of OneSource’s aggregation partners.  LexisNexis and Factiva both flew the flag at the show, but their primary offerings are not business information but legal (Lexis) and news (Nexis and Factiva).  Except for PrivCo, none of the PE/VC focused vendors were onsite.

Interestingly, many internationally-focused vendors such as BvD, EMIS, BMI, MarketLine, Euromonitor, and Financial Times still attend.  The industry research segment seems to have held up better than business information.  BMI, MarketLine, IBISWorld, and Euromonitor were there along with various industry specific vendors.  However, Plunkett Research and First Research (owned by Dun & Bradstreet) were not present.

The decline of tradeshows is tied to Buyer 2.0.  It used to be that tradeshows were one of the few ways you could semi-anonymously gather information about vendors.  But now, information services no longer require a face-to-face meeting for demos.  You will find them on YouTube and Vimeo as either training tools, feature specific release demos, or recorded webinars.  And once buyer and seller are speaking, web sharing tools have long replaced onsite demos.  We have become accustomed to signing up for services without meeting a sales rep face-to-face.  At the lower end of the market, users simply enter a credit card and may never speak to a representative of the company.

Nowadays, there is so much information available online that the attendees are on site either for professional development (and much of SLA still serves that purpose) or because the show is local.  One exhibitor commented that the shows do better in the Northeast, likely due to higher population density and Amtrak.  I agreed — I have no plans to attend SLA 2017 in Phoenix.