Businesses might persist in talking a good game when it comes to improving the quality of their marketing data but the sad fact is, so-called “bad data” is on the rise, with just 2% of firms stating they completely trust the information they hold.
So says a new study from Experian Data Quality, which reveals that despite businesses investing heavily in new technology, current practices for building a data quality business case fall way short.
It may be an issue which has been around since Lester Wunderman first coined term direct marketing in the late Sixties but these days the main problem appears to be that there are simply too many stakeholders – in other words people – involved in the process; everyone, it seems, wants to put their oar in.
Of course, given its position in the market, Experian has advice to impart, insisting that “better data insight and fact-based communication can reduce the number of stakeholders and better tie initiatives to key priorities, helping to expedite approval of these business case proposals”.
“Bad data” has had a negative impact on most businesses in the last 12 months. With only 2% of businesses stating that they completely trust their data, it is obvious that organisations deal with a significant amount of inaccuracy, Experian says. But while 86% see value in implementing a data quality initiative, these business cases take an average of 12 to 18 months to approve and often lack a dedicated owner.
The study also found that 80% of businesses say there are too many stakeholders involved in building a business case for data quality and 89% say that customer experience is a critical driver behind their data quality initiatives.
Other key drivers behind data quality initiatives include regulatory compliance, business intelligence, adding value to business initiatives and marketing efficiency.
Experian Data Quality senior vice president and general manager Thomas Schutz said: “We know that businesses are dissatisfied with this level of inaccuracy in one of their most critical assets.
“This research backs up what we’ve heard from our clients — business cases take too long and are too disjointed. Changes are frequently discussed with sentiment and gut feeling, rather than with real data tied to relevant business problems. By improving communication and backing it up with hard facts, business cases can involve fewer stakeholders and take less time to approve.”
The research forms part of an in-depth report into the future of the personal information economy, available for download at the Experian website>
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