Will Poor-Quality Data Undermine your Business?
Leverage precise data to discover business opportunities, make strategic decisions, and increase ROI with a powerful data quality platform.
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Data is everything in today's fast-paced digital world. Every major decision is made after careful analysis of precise data. According to Harvard Business Review, more than 26.5% of businesses have adopted a data-driven culture. Data-driven companies acquire more customers and generate higher profits than others. But what happens if the data is obsolete?
Valid and precise data can highlight hidden business opportunities, whereas poor data quality can disrupt organizations and cost millions of dollars. Only a few firms understand the significance of data quality management, while others are busy investing in cutting-edge technologies to gain a competitive advantage. You're mistaken if you believe advanced AI models can overcome data quality issues. Poor quality data will destabilize the models, leading to wrong analysis, and the company cannot rely on the decisions.
Data quality has now become an integral part of successful businesses. The time spent identifying, cleaning, and validating data with automated data quality platforms will help you thrive in your business more than developing complex business algorithms.
Why do Organizations need High-Quality Data?
Data quality is critical regardless of the type or size of the organization. It increases the likelihood of the company addressing and solving complex challenges. But, in today's scenario, micro businesses have little data and rely on gut instinct, whereas large corporations have a massive amount of data and struggle to make data-driven decisions. To outwit competitors, every company must begin structuring data, eliminating silos, collecting precise data from third-party sources, and ensuring the quality of information.
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For example, suppose you intend to launch a new product. In that case, you will need access to data regarding market conditions, competitors, products, and pricing information to develop strategic plans to attract more customers. A minor data error can result in incorrect predictions, costing businesses money and damaging their brand image.
Impact of Poor Quality Data
From forecasting market trends to accurate product, pricing, and inventory management, data integrity plays a significant role in the success of your business.
Here are a few negative impacts of obsolete data.
Missed Business Opportunities
To stay ahead of the market, organizations must have access to validated data to forecast market trends, identify patterns, and gain a competitive edge. If the competitors gain faster access to reliable data than you, they will capitalize on the new product development, and you will miss out on the opportunity.
For example, until 2004, Blockbuster Video was one of the most recognizable brands. They declined when Netflix approached Blockbuster with an offer to buy their company for $50 million, claiming it was a small niche business. Blockbuster Video declared bankruptcy in 2010, whereas Netflix now has millions of subscribers. The story would have been different if Blockbuster had a clear analysis. It is critical to access precise data to identify innovative opportunities and future-proof the business.
Poor Customer Relationship
Customers are the lifeblood of any business. Data are the underlying factor in maintaining a positive customer relationship. Incorrect information about a customer's address, name, or phone number will impact your customer relationship. According to a Forbes article, 83% of customers switch brands when they feel unappreciated and receive poor customer service.
A good client relationship is more important than developing a great product. Every consumer wants to be handled differently in this age of personalization. As a result, businesses must guarantee that they have all of the necessary information about the customer and that it is accurate. Manually grading data and ensuring its quality is a tiresome task. Adopting robust data quality platforms to monitor the quality of the database regularly will allow organizations to give a tailored experience while being successful.
Inaccurate Marketing Strategies
Marketers throughout the world squander millions of dollars owing to poor data integrity. With the amount of money every organization spends on CRM, you'd assume that they have the ultimate gold record of their customers. Unfortunately, most businesses fail to collect reliable client data. The main reason for this is that there are several data sources, and the data is scattered among departments, resulting in various data formats. Organizations will target the wrong customer due to disparities in data types and data silos.
Volkswagen introduced the Phaeton; a premium-class automobile model sold globally in 2002. However, global sales halted in 2016. This failure is primarily the result of ineffective targeting, product positioning, and demographic underestimation. Before pitching a product, it is critical to understand your target market and have effective marketing strategies to improve sales.
Fix Data Quality Errors and Thrive in your Business
As businesses become more data-driven, data quality should be your valuable asset. Poor-quality data can cost you millions of dollars. While identifying data anomalies and fixing them may appear to be challenging at first, with the right data quality platform, you no longer have to worry about it. Leveraging robust data quality platforms such as Freda, Talend, and others will help you extract any information you want, address all your data quality issues, and eliminate data silos in just a few clicks and without coding knowledge.
Abinaya Sundarraj works as a marketing consultant at Xtract.io, a data solutions company. She is a passionate reader who enjoys writing about the power of data in various industries. She believes that the universe provides everything for those who genuinely desire it.