In this data driven marketing world, companies can thrive in the competitive global market by operating effectively with the available data resources. Unfortunately, many large companies fail to use available data resources effectively. These organizations claim to have various teams with different goals, priorities and responsibilities. Thus ending up with teams working towards different goals and getting diverted from the common goals. Today these issues are giving a way for the rise of data silos. Data silo is nothing but the accumulation of fixed data at a location which can be accessed by one team and is isolated from rest of the team. Well, from studies it has been revealed that data silos act as a barrier for team collaboration, data accessibility and efficient business operations. Let’s dig further in with the help of few points that justify the hindrance to ROI as well as marketing activities of an organization due to data silos.

How data silos hinders Organization’s ROI?

According to recent research, most of the CFOs agree that data silos are the actual cause for the poor budget plans. ERP application reports and standard excel spreadsheets provide limited information on organizational gain. Due to this scattered flow of data in between the organizational units there is a rise in the number of data silos. Hence, top level financial executives of the company fail to design an accurate budget for the upcoming year. However, today most of the organizations lack skilled IT staff. In addition to this, companies expect them to develop, manage and analyze poor data along with their mundane work. Unfortunately, due to the rise of data silos in large scale organizations these IT professionals are failing to complete their additional tasks on time. Thus, company fails to own accurate data of the potential customers and rely on third party vendors for accurate customer data. It’s a well-known fact that company’s growth completely depends on its human resources. In case of data silos, company’s HR executives fail to identify the difference in employee engagement and the growth of poor team culture. This in-turn results in poor management of employees and loss of efficient employees from the organization. Thus, data silos inhibit the ROI of an organization by rendering the budget plan ineffective, over working the IT staff and inefficient human resource management.  

Significance of data silos on marketing

Recently, data silos are rising at a faster pace mainly due to invade of social media network sites for digital marketing. According to the studies revealed by context of things, “the sales funnel has changed about 127,893 times due to the advent of digital tools”. Thus, in this digital era both sales and marketing teams need to collaborate with each other, to provide enhanced customer experiences throughout the buyer’s journey. If the company’s marketing assets are restricted only to the marketing team for the welfare of marketing activities. Then it results in data silos between sales and marketing teams which results in the following impact on the marketing process:

Sales team ends up with lack of accurate customer data

The marketing team sets the strategies to reach the right customers through multiple marketing channels. In fact, marketing executives collect the accurate details of customers through the marketing campaigns like email marketing, telemarketing and other online marketing activities. What if these data sets remain localized only to the marketing team then what would be the outcome? It’s natural that sales teams fail to provide enhanced buyer experience for the existent leads. Thus, missing valuable leads and resulting in poor sales conversion rates and reduced sales revenue. Because, the marketing assets like collected customer data serve as reference material for sales team executives to prioritize leads. This helps sales executives to understand potential customers and provide a customized buyer experience and in-turn increase the sales conversion rates. Thus, maintaining lead transparency between marketing and sales team is very important to boost the sales conversion rate.

Lead’s cycle remains indefinite:

Yes, it’s true that the lead’s cycle remains indefinite due to the rise of data silos between marketing and sales team. Since, the unclosed leads stay back on sales executive’s desk indefinitely or go unattended (loss of valuable leads). This would prove to be beneficial for the competitors with well-defined collaboration between their marketing and sales team. The unclosed leads are pushed to marketing team for further nurturing, scoring and evaluation, then returned to the sales executive table with detailed information of lead that helps in converting leads into sales. To avoid scenarios of misalignment between two teams, it’s very important for companies to eliminate data silos which act as a barrier between sales and marketing teams.

Poor customer experience:

Well, it’s very important to know that each and every team that deals with the customer plays a crucial role in enhancing the customer experience. For this, each team must interact with the customer at various stages of the customer cycle. In case of data silos, customer data remains localized within the teams. Thus, with insufficient customer details the teams fail to satisfy the customer needs thereby, resulting in a loss of potential customers.

Wrapping It Up

Today, fortunately trending technologies like integrated marketing automation for both sales and marketing teams, Cloud based integration and AI marketing platforms are here to help businesses in breaking down data silos. Businesses can implement these technologies to reduce the occurrence of data silos at different levels of an organization to improve the marketing efficiency. We at DataCaptive, offer solutions to breakdown data silos at various levels of an organization. For more information you can reach us at