The Hidden Costs of Inaccurate Market Data

Table of contents

Oct 14, 2025 | Data & trends, Insights

Accurate market data is critical, especially for startups making fast, high-impact decisions with limited time and resources.

High-quality market data helps you find the right companies, reach the right contacts, and build campaigns that actually convert. It keeps your team focused, your strategy aligned, and your budget aimed at what works.

Because when your data’s off, you’re wasting time, money, and momentum on the wrong leads.

In this article: We’ll break down what inaccurate market data is really costing you, how it quietly undercuts your sales and marketing performance, and what you can do to fix it before it starts hitting your bottom line.

What is market data?

Market data is information about companies, contacts, and industries that helps you find and connect with the right customers. It’s how sales and marketing teams identify who to target, when to reach out, and what to say. It includes things like:

Company size, industry, location, and revenue
Decision-maker names and contact details
Market signals like product launches, leadership changes, press coverage, or social media updates

It doesn’t just tell you who’s out there, it helps you personalise outreach, prioritise your pipeline, and build campaigns that perform. If your data’s accurate, you focus better and convert faster. If it’s wrong, you waste time chasing the wrong companies or miss the ones that actually matter.

Why is high-quality market data essential?

High-quality market data helps you target the right companies, personalise outreach, and focus your efforts where it actually drives results instead of causing your team problems like:

1. You’re chasing the wrong companies

One of the most immediate overlooked costs of bad market data is time.

When your team is working from outdated firmographics, incorrect contact details, or misclassified industries, they end up chasing leads that were never viable in the first place.

Let’s say your data says a company has 50 employees and fits your ICP perfectly.

Except… they downsized last year.

They pivoted into a completely different vertical.

The “Head of Marketing” listed in your CRM left six months ago.

You don’t know that — because your data hasn’t been updated.

So your team spends days chasing a dead lead. SDR time is burned. Sequences go out. Follow-ups are sent. Nothing lands.

Now multiply that across hundreds of accounts. You’re looking at weeks of wasted outbound. And the opportunity cost adds up long before you even realise what’s going wrong.

2. You’re spending money on the wrong data

Marketing teams waste up to 20% of every euro spent on bad data, according to Experian’s Global Data Management Report. That means nearly a quarter of your campaign budget could be going toward audiences that will never convert. Imagine spending €10,000 on a campaign… and learning that €2,100 of it just evaporated because your list was wrong. You wouldn’t do that on purpose. But if your data isn’t regularly updated? You already are.

3. Poor conversion rates and misleading KPIs

Inaccurate market data can skew your numbers in ways that aren’t obvious at first. If you’re building campaigns or setting KPIs based on an incorrect view of your target market, your conversion rates will suffer. But instead of blaming the data, you might blame the messaging, the segmentation, or your team. Gartner reports that poor market data quality costs organisations an average of $12.9 million per year. That includes everything from inaccurate forecasting to wasted time chasing the wrong leads. Maybe your pipeline looks full on paper — but nothing’s moving. Maybe your cost-per-lead looks amazing — but none of those leads are closing. Without clean, reliable sales intelligence, even the best GTM strategy will misfire.

4. You’re burning out your team

When people don’t see results, they disengage. A LeadJen report found that inaccurate contact data wastes 27% of sales reps’ time each year. When all that effort leads to dead ends, motivation drops fast. Many startup leaders assume this is just part of the grind. But in most cases, it’s avoidable. With clean, accurate data, teams have:

Better conversations
More qualified leads
Clearer, faster wins

Fix the inputs, and the output takes care of itself.

5. You’re missing the companies that matter

Arguably the most expensive problem is the hardest to see: You’re missing opportunities you didn’t even know were there.

A recent IBM study found that bad data is responsible for up to 30% of wasted business activity. That includes the deals you never even got to chase.

Think about it: a company raised funding, doubled headcount, and launched in your vertical last quarter. That’s probably your next best-fit customer, but only if your data knows about them.

Startups relying on gut feel or static datasets end up stuck in narrow markets, unable to scale effectively. High-quality data expands your view of the market and unlocks smarter, more strategic growth.

What startups should do instead

Startups don’t need more data, they need better data. That means:

Regularly updating firmographics to reflect today’s market
Verifying contact info before outreach begins
Aligning segments with real-world behaviour
Using enriched data to qualify and prioritise leads

Whether you’re launching your first outbound motion or expanding into new markets, market data should be an asset — not a liability.

The sooner you fix the hidden costs, the faster you can grow.

Make SaleSight part of your go-to-market strategy

Not having high quality data on your Ideal Customer Profile (ICP) slows sales and wastes time.

SaleSight helps early-stage teams define their ICP, map the real market, and build a prospect list that’s ready to act on — no more guessing, just clear, actionable direction.

With accurate data and dynamic segmentation, you’ll spend less time chasing dead leads and more time connecting with the right ones.

Ready to grow smarter, not louder? Get in touch — or start exploring with SaleSight today.

ABOUT THE AUTHOR

Sunstone

Sunstone is a market intelligence company and platform that empowers leading enterprises to make smarter decisions through the Sunstone Data Universe—a proprietary, dynamic source of company, market, and financial intelligence. Since 2023, our technology has enabled professionals to transform complex data into actionable insights, helping teams identify growth opportunities, refine strategy, and reach their ideal customers with precision. Trusted by organisations across the UK and Europe, Sunstone delivers the intelligence behind smarter commercial performance.