Why Poor Data Quality Is A Major Roadblock In Your Business Growth
“Customers don't measure you on how hard you tried. They measure you on what you deliver”
- Steve Jobs
Recently, I came across this quote and realized that quality of products or data is such an important part of any business. Data has become significantly prominent for every marketer. Every marketer seeks larger profits from the data they acquire by utilizing insights from this data for designing successful marketing campaigns. From actions taken by employees to reactions received from customers, there is a wealth of information that a business can collect. These insights are transformed by savvy companies into actionable data through initiatives such as Business Intelligence, Predictive Analytics & Targeted Marketing campaigns. In such a scenario, not understanding the relevance of data quality would be absurd and downright detrimental to the business.
Yet, it has been estimated that 60% of companies have an overall data health that’s unreliable. Due to such lack of knowledge of data quality significance, most businesses incur losses on a regular basis. To understand further, the repercussions of poor data quality, let’s look into the following points:
Approach To Data Quality
The overall approach to data quality & its maintenance lags behind especially in terms of data-quality specific product owners. Employees of many organizations still lack a sense of responsibility towards providing data quality assurance. There is a huge void in the place of data specific roles for each business unit within organizations.
The Result- There is a lack of Identification of Data Quality Issues & their root causes.
This ultimately affects the overall progress of business processes.
Wasted Resources & Lower Productivity
According to a report by Forrester Research, Data analysts allocate a significant amount of their time in vetting & validating their analytics data prior to its utilization for strategic decision making- approximately 40%.
This means that the human resources allocated to verification & validation of data are being over utilized yet under productive. The same fate lies in store for the other resources utilized in marketing & sales when data quality is not treated as a priority. It is, thus, important to acquire and make the most of accurate attribution & conversion data so that you can ascertain whether or not your campaigns are worth the allocated resources.
Moreover, making strategic decisions based on data and its quality yields better results in terms of ROI as compared to investment decisions based on mere hunches & assumptions.
Poor data quality results in an annual financial impact estimated to be over $ 14.2 million dollars per year. (IT Business Edge)In short, building a customer centric business with successful marketing campaigns relies heavily on quality data fuelled customer insights.
Offer Lead Magnets
Lead Magnets are free content offerings or content upgrades that are aimed at increasing engagement and nurturing brand loyalty. Lead magnets can be free ebooks or enlightening articles that are offered free in exchange for email addresses of possible prospects. This encourages conversion of prospects into active customers for your products and services in the future. Moreover, it also helps in accumulating a large amount of prospect email data .
Multifaceted Effects Of Poor Data Quality
Poor data quality may affect a range of marketing & sales related aspects such as lead generation, sales opportunities, finance, customer relationships etc. In addition to these, a business set up runs the risk of reputational damage. For instance, lack of data quality in case of banking transactions could lead to a loss of trust and customers in addition to other fallouts. Lead nurturing campaigns are particularly rendered meaningless by poor data quality. This can be understood by the fact that sending communications to prospects whose data is not up to date- yields no results, in addition, leads to wasting of invested resources. Thus, efforts to enrich customer experience need to be backed by high-quality data.
The amount of data available to businesses is immense. When utilized, keeping in mind its quality & productivity, Data will not only contribute to better Sales & Marketing but also build Strong Brand Loyalty!