Data has been the foundation of successful lead generation in B2B marketing. All the businesses want accurate, high-quality lead data to generate demand, nurture the prospects and convert the leads into their customers. The data helps in streamlining the outreach, sales and customer relationship management.

Businesses can collect and manage their own data, or they can outsource it to the third-party vendor. Due to the cheap cost of outsourced data, many businesses get into that trap to scale their pipeline, but all they get is inaccurate information and compliance risk. Businesses should make sure that the data that they are using is accurate, relevant and compliant.

Let’s explore the risks of outsourcing lead data and the best way to maintain lead quality.  

The Risks of Outsourcing Lead Data 

1. Data Inaccuracy and Poor-Quality Leads

There’s no way that businesses can control the accuracy and quality of leads obtained from the third-party vendor. Usually, third-party vendors rely on automated web scraping or purchasing bulk outdated databases.

This results in,

• Outdated contact information
• Vague leads with no engagement intent
• Wasting of marketing efforts
• Increase in cost per acquisition (CPA)

Businesses risk time and money while chasing leads obtained from third-party data. 

2. Compliance and Privacy Issues

As we are moving towards a privacy-driven world, it’s very important to seek consent from the users before collecting and using their information. Outsourced lead providers don’t follow the practice of taking user consent, and this puts the companies at legal risk. 

Non-compliance can result in: 

• Hefty fines and penalties
• Loss of trust and Brand reputation
• Getting blacklisted by ESPs

Maintaining compliance requires businesses to have control over the process of data collection and how it is stored and used. 

3. Lack of Personalization and Engagement 

Businesses have moved from the standard outreach to the personalized outreach to increase the engagement, but data collected from third-party vendors lacks intent and depth and this leads to,

• Standard outreach messaging, which fails to deliver expected results 
• Lower open, click and conversion rates  

Marketing strategies that are made using the third-party leads doesn’t resonate with the target audience. 

4. Dependence On Third-Party Vendor

When businesses don’t maintain the data, but they outsource it. They are heavily reliant on those vendors to provide them high-quality accurate data, compliance standards and timely updates.

This creates a challenge,

• Inability to verify data sources
• In case a vendor shuts its business, the partners will be left stranded.
• No control of quality and timing of data updates

This dependency restricts the businesses from scaling their marketing operations, because outsourcing can get you unpredictable and unreliable outcomes.  

5. Lack of Competitive Advantage 

Outsourced data providers don’t sell the data only to one business; they sell it to multiple businesses, which reduces the chances of exclusivity for businesses to stand out from the competition. As a result, every business is using the same data for marketing outreach.

This leads to, 

• Saturated outreach to the same audience
• No personalized messaging for specific audiences
• Low ROI on marketing campaigns

To avoid this, businesses can start collecting and managing the information to ensure high-quality lead data. 

How Vereigen Media Ensures High-Quality Lead Data

Vereigen Media is known for providing high-quality leads because we

1. First Party Data Collection – We collect and verify our lead data to ensure accuracy. The data is collected through customer interactions, website visits, email signups, etc.  

2. Verified Content Engagement – We qualify only those leads that have interacted and shown a positive intent. This is the biggest differentiator between an outsourced and in-house lead data.  

3. Privacy and Compliance First – We follow a privacy and compliance-first approach by strictly following the GDPR and CCPA rules and regulations. We only deal with opt-in users; this provides transparency for the businesses to their customers. 

Conclusion

Outsourcing leads may seem to be a tempting option for businesses because of its cost-effectiveness, but the risks it carries are far heavier than the benefits. Inaccuracy, lack of personalization and dependency on outside vendors can hamper the credibility, trust and brand reputation of a business. 

At Vereigen Media, we eliminate all these risks by providing high-quality, intent-driven leads that are ready to convert. If you want to transform your lead generation strategy, contact our team today. 

By Manraj Singh