Why Poor Data Quality Is Impacting Profits

 
 
By Dennis McCafferty  |  Posted 02-10-2015 Email
 
 
 
 
 
 
 
 
 
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    Unreliable Source
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    Unreliable Source

    92% of survey respondents said their customer/prospect data may be inaccurate in some way.
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    Most Common Data Errors
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    Most Common Data Errors

    Incomplete or missing data: 51%, Outdated information: 48%, Inaccuracies: 44%
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    Hands-Off
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    Hands-Off

    43% said their organizations are either "unaware" or simply "reactive" about their data quality.
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    Random Effort
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    Random Effort

    63% said their companies lack a coherent, centralized approach to their data quality strategy.
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    Sales Strategy
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    Sales Strategy

    53% of those at companies with a central approach say their organizations’ profits have significantly increased in the last 12 months.
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    Most Likely Managers to Oversee a Centralized Data Strategy
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    Most Likely Managers to Oversee a Centralized Data Strategy

    Chief data officer: 29%, CIO or CTO: 23%, Data governance officer: 13%, CFO: 12%, CMO: 11%
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    Biggest Benefits of High Quality Data
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    Biggest Benefits of High Quality Data

    Increased efficiency: 58%, Mobile Website performance: 55%, Improved decision-making: 51%, Cost savings: 47%, Protection of organization reputation: 46%
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    Consumer Engagement
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    Consumer Engagement

    53% said they depend on data to understand customer needs, and 51% said it's a great resource for finding new customers.
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    Send Snags
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    Send Snags

    90% of survey respondents said their companies conduct email marketing campaigns, but 78% said their organizations have had email delivery problems in the last 12 months.
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    Biggest Consequences of Failed Email Delivery (U.S. Only)
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    Biggest Consequences of Failed Email Delivery (U.S. Only)

    Inability to communicate with subscribers: 35%, Poor customer service: 33%, Lost revenue: 33%, Unnecessary Costs: 29%, Regulatory issues: 27%
 

While nearly all organizations view data as an essential sales and marketing asset, a staggering majority are struggling with inaccurate information, according to a recent survey from Experian Data Quality. The report, titled "Data Quality Benchmark Report," indicates that much of the issue is caused by managerial shortcomings (not tech ones): Many organizations take–at best–a passive approach to this issue, for example. In fact, most lack a formal, centralized strategy to improve data quality. As a result, far too much data is either inaccurate, outdated or incomplete, findings show. "The cost of poor data quality is hitting home in boardrooms across the globe," said Thomas Schutz, senior vice president and general manager for Experian Data Quality. "Most businesses, however, are perplexed because they actually are investing in data quality tools…(But) organizations need to do more than buy a new piece of software; they need to make data quality an organizational priority and put the right team in place to manage that complex effort." More than 1,200 global professionals who have knowledge of their companies' data management practices took part in the research.

 
 
 
 
 
Dennis McCafferty is a freelance writer for Baseline Magazine.

 
 
 
 
 
 

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