The Consequences of Poor-Quality Contact Data

Different organizations and sectors have varying goals and key performance indicators. Data collection and standardization processes will also differ. But while data gathering and strategies may not look the same, the definition of high-quality data remains the same. High-quality data is relevant, complete, accurate, and reliable. These qualities make the data valuable, impacting critical decision-making and business outputs. Therefore, not ensuring that your data retains its quality can lead to consequences. Here are the negative impacts of poor-quality contact data:

Poor decision-making

Poor decision-making based on insufficient quality data leads to the creation and execution of ineffective business strategies. When you’re working with inaccurate, irrelevant, or incomplete data, you reach the wrong conclusions and waste resources when you implement ill-informed campaigns. From the marketing team to the billing department, poor quality contact data can impact all departments in an organization.

Damaged reputation

Data compliance standards exist to protect customers and stakeholders. When you are data-compliant, you demonstrate a strong set of ethics that help build brand loyalty. So when good quality data helps your company achieve compliance, it not only lowers its risk but also increases customer confidence. Furthermore, high-quality data means you’re implementing targeted campaigns and reaching contacts that find your communications valuable and relevant. When you send irrelevant messages, you can ruin the customer experience and lower trust.

Unnecessary spending

Suppose you’re not partnered with a data cleansing solution. In that case, you’re likely addressing data quality issues as problems arise, for example, only correcting addresses when the mail has been returned or undelivered. You may be asking employees to manually make corrections by removing duplicates or correcting mistakes like spelling. However, time wasted on manual data cleansing increases financial costs. Low data quality that leads to poor decision-making means you’re also spending unnecessarily on resources and strategies that will not likely result in positive outcomes. High-quality data helps you maximize time and budget by guiding targeted communications.

Productivity loss

High-quality data allows organizations to streamline their process, increase efficiency and maximize resources. Poor decision-making slows down the organization, resulting in reduced productivity. Employees are also more motivated to work when they know leadership prioritizes giving them the tools and resources they need to perform their tasks. In this case, quality data is an insightful and valuable resource allowing them to execute business activities.

Missed opportunities

When data quality results in damaged reputation, inaccurate analysis, poor customer relations, and poor decision-making, you miss good opportunities. You need insightful knowledge that guides investment, processes, and implementation to create effective strategies. For example, without knowing insightful demographic details, you could be reaching out to contacts that will find your campaigns irrelevant. Not only would you be missing potentially lucrative opportunities, but you’re also missing the chance to target communications strategically.

At RunnerEDQ, we know how important it is for organizations to maintain high-quality contact data. Our solutions were designed to format, standardize, and verify addresses to ensure your alumni and donor records are always updated. We also enhance contact information to include email, phone, and social media handles. Because many of your alumni may have moved or work overseas, we also format and validate international addresses.