Why is Data Quality Important?

Data Quality has a big impact on your bottom line and is a key factor that can differentiate you from your competitors. However, as the issue of data quality is complex and spans multiple business units, the impacts of data quality often go unchecked and unmeasured.

Data Quality issues are systemic across many businesses: For example: 

• Dun and Bradstreet estimate that 41% of companies cite inconsistent data across technologies, such a CRM’s, as their biggest challenge.
• Chief Marketing say that only 16% of companies characterise the data they are using as ‘very good’
• Reach Force predicts that in the next hour, 59 business addresses will change, 11 companies will change their name, and 41 new businesses will open, and some will close.

The impacts of data quality

Data Quality issues can have direct and indirect impacts on your organisation. The direct impacts are easily quantifiable, including how much money is being spent on 3rd party data, data cleansing, and manual data remediation efforts. However it is the indirect impacts that create the higher cost for many organisations.

Three common in-direct impacts of data quality include:

• Reduced effectiveness in decision-making – Low data quality can lead to reduced confidence in analysis and scenario modelling, and can lead to wasted time debating about data inconsistencies and reporting measures. This then leads to an inability to make timely and effective decisions and actions, which could lead to a slow market response and/or loss of first mover advantage.

• Reduced Productivity – Good data quality enables a focus on actual revenue producing activities as opposed to continuously validating and fixing data; especially for Sales and Marketing teams.

• Reduced Marketing effectiveness – Better data enables more accurate targeting and communications, and as a result more effective marketing return on investment, with a higher response rate and reduced media wastage.

So what is data quality costing your business? What is the opportunity cost of leaving this unchecked? 
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No doubt, with some measurement and investigation, there is a strong business case for value creation by addressing this often overlooked and under managed issue. It takes an analysis of the direct and indirect impacts of data quality to get a true sense of why data quality is important and to understand the true cost to your business.

Collagis is committed to helping businesses like yours to optimise workforce and organisational effectiveness. We'd love to share with you how we can help address data quality in your organisation.
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