Data quality influences every aspect of a company. That’s why it stands to reason that it will also affect how well your corporation is performing.
With that in mind, we wanted to explain thoroughly how data quality can influence your corporation’s performance. Let’s take a look:
What Does the Research Say?
Before we proceed, let’s take a look at the research and what the numbers suggest.
According to Gartner, corporations that have high-quality and business-driven data see a 57% increase in customer satisfaction levels. On the other hand, 53% of companies with poor data quality suffer significant financial losses and operational problems.
Additionally, Experian tells us that 77% of corporations believe their bottom line is negatively impacted due to inaccurate and incomplete data. What’s more, their research suggests that companies believe 12% of revenue is lost because of bad data quality. That’s not an insignificant number, especially when you consider the fact that companies that prioritize data quality see a 15-20% increase in their revenue.
According to a recent survey, bad data can cost a corporation anywhere between $9.7 million and $14.2 million every year.
So, the overall numbers paint a clear picture: Data quality affects all vital metrics in a corporation.
Ways Data Quality Affects Your Company’s Performance
- Data quality affects growth – the many problems that arise from poor data (higher percentage of errors, inferior software, etc.) cause a company to grow slowly or stagnate entirely.
- Data quality affects productivity – the same problems that affect a company’s growth also affect its productivity. With so many problems occurring from poor data quality, employees need to spend time fixing them, which hampers their regular activities.
- Bad data causes time and resources to be wasted – many are not aware, but cleaning up bad data is a lot more costly in terms of resources and time than it is to ensure high data quality across the board.
- Data quality leads to better decision-making – companies that worry about the quality of their data make better and faster decisions. That’s mostly because the quality of data directly affects the decisions executives make. Without the right information, you cannot make proper decisions.
- Customers are much happier when data is of high-quality – companies largely collect and store data to ensure their customers are satisfied. Without all of the data you have on customers, you become unable to provide the experience your customers deserve. On top of that, as most companies collect data, consumers notice when you don’t, as the experience they have with your brand becomes much worse than the experience they have with your competitors.
The Bottom Line
As you can see, the research on data quality and the way data quality affects business suggest that the performance of any corporation is significantly affected by the quality of data used.