The importance and benefits of data quality
Working to make sure that your organization has the most accurate data on its clients possible can seem quite tedious. However, software tools from providers, such as Experian Data Quality, make the process of collecting accurate data simple. Moreover, working to collect the best data possible can give you a significant advantage in improving profitability or achieving your mission.
Why is data quality important?
Data quality is important because without high-quality data, you cannot understand or stay in contact with your customers. In this data-driven age, it is easier than ever before to find out key information about current and potential customers. This information can enable you to market more effectively, and encourage a loyalty that can last for decades. Rest assured that if you are not convinced of the importance of data quality, your competitors are, and they will not hesitate to strive for the best data to improve their own competitive advantage.
Data quality benefits
To get a full understanding of why data quality is important, you only need to look at the many benefits that accurate, actionable data gives to organizations.
- Lower mailing costs: Accurate customer data reduces the amount of undeliverable mail, which saves you money in postage costs and in having to continually resend packages that would have arrived safely the first time, had your data been accurate. Additionally, companies that make the most concerted efforts to work with the U.S. Postal Service to keep their customer addresses up to date will receive discounted postage rates for direct mail and shipping.
- Improved customer relations: It makes sense that accurate data will improve relations with your customers. Data enables you to truly know your constituents, which keeps you from sending mail that they do not want to read and helps you to anticipate and meet their needs. Both of these things create a great deal of goodwill with your customer base and are more reasons why data quality is important.
- More consistent data: Larger companies and organizations that offer several points of entry for their customers and clientele must continually face the problem of data that is inconsistent across the business. Inconsistent data leads to duplicate mailings, it keeps company and organizational departments from reaching key clients, and it creates a host of other problems. Why is data quality important? Because it helps keep every department in your company on the same page when it comes to analyzing and meeting the needs of your clients.
- More effective marketing: The importance of data quality is also evident in marketing efforts. In the past, the lack of demographic and other important data about customers meant that companies could only market to the broadest audience, wasting money on targeting people who were unlikely ever to be interested in the particular good or service being offered. The wealth of demographic information available today enables marketing that is more tightly focused and more likely to achieve the desired results.