All the advantages and disadvantages of using external B2B data listed

This is why external data is so valuable

To be one step ahead of your competitors, it is important to look beyond internal data. This is because external B2B data gives context to internal data and deeper insights into both your current and potential customers. Based on this information, you can grow your business. These 3 reasons make external data so valuable:

1. You discover what your market looks like. With external data, you put the strengths and weaknesses into the context of the market.
2. You map out what your current customers look like. By enriching internal data with external data, you discover your customers' strengths and weaknesses.
3. You gain insight into what your potential customers look like. By analysing website visitors, for example, you find out which non-customers visit your site and why they do not (yet) convert.

But which type of external data really adds value to your analyses and models: public, self-collected or those from commercial providers? Below, we explain what each type entails and list the advantages and disadvantages.

1. Public data

Public data can be found at all kinds of agencies. Think CBS and the government. You can download and use their datasets free of charge.

Advantages:

• De datasets are free
• You have large amounts of reliable figures

Disadvantages:

• They are regularly not up to date, as they are updated less frequently
• The data often do not have the right structure to easily integrate with internal systems. As a result, integration takes a lot of time

2. Self-collected data

You can also collect public information yourself, for instance by extracting it in a smart way (better known as scrapping). This includes data from news websites and internet forums. You retrieve that data via APIs or scripts.

Advantages:

• It is a cheap way to get external data
• The data gives useful context to your internal data

Disadvantages:

• It takes a lot of time to collect the data
• You have a lot of thinking to do, e.g. about formats, licensing conditions and applicable laws and regulations

3. Data from commercial providers

There are various companies that collect data themselves and enrich it with self-developed data intelligence, through machine learning and artificial intelligence, for example. They then offer this enriched data. This includes, for example, insights on company developments, financial information and company profiles. 

Advantages:

• The quality of the data is high and matches exactly what you need
• You integrate the data very easily with your internal systems because the datasets have been made suitable for it
• You are more likely to discover insights that your competitors don't yet have

Disadvantages:

• It is quite an expensive option compared to the other data types
• You need to make sure the data is complete and contributes to your goal

Want to know more?

Whatever data type you choose: if you combine external data effectively with internal data, you will discover more in-depth, valuable insights. This way, you will find out about opportunities and risks much faster, keeping you ahead of your competitors. Looking for examples of how to apply external B2B data as an analyst? Then check out the Company.info website. 

About Company.info

Company.info delivers unique, innovative B2B data to data analysts, data scientists and BI analysts in compliance with laws and regulations. This provides more in-depth, valuable insights, allowing B2B organisations to increase revenue, streamline operations and reduce risk.