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Importance of data quality

Explore the importance of data quality and what it means for your data-driven business.

Have you ever wondered what it means to be a truly data-driven organization? To make big decisions, you must trust that your data is accurate and reliable.

Many businesses find that the data they collect simply isn’t reliable enough, which is an issue because data is vital for business success. In fact, according to our 2023 Global Research, 87% of business leaders say that high-quality data is critical in responding to market pressures.

You might feel overwhelmed thinking of improving and maintaining your data quality. However, tools from data quality leaders like Experian make checking and verifying new and existing data more effortless than ever. As your data quality improves, you can make confident, data-driven decisions for your organization.

Learn more about data quality importance, and how it helps your business grow.

Why is data quality important?

Data quality is essential because you give customers the best experience when you make decisions using accurate data. A great customer experience leads to happy customers, brand loyalty, and higher revenue for your business. If you’re using poor-quality data, you mostly guess what your customers want, and maybe even do things your customers dislike.

Collecting trustworthy data and updating existing records gives you a better understanding of your customers. It lets you contact them using verified email addresses, mailing information, and phone numbers. This information helps you market effectively and use resources efficiently.

Maintaining data quality can help you stay ahead of your competitors, too. Reliable data keeps your business agile. You can spot trends and industry changes sooner to take advantage of new opportunities or tackle challenges before your competitors.

Due to the importance of data quality, your organization needs to preserve good data by constantly managing it for the best results. Luckily, modern data tools and platforms from companies like Experian help automate and streamline your day-to-day data validation and management.

Start your data quality journey today

 

Data quality benefits

The best way to understand the importance of data quality is to consider the benefits of introducing a data quality strategy.

  • Lower mailing costs: Accurate customer data reduces undeliverable mail, saving you money in postage costs. You may even qualify for discounts on postage rates from the U.S. Postal Service if you consistently use accurate and correctly formatted addresses.
  • Improved customer relations: Reliable data lets you get to know your customers. With quality data, you avoid sending messages they don’t want and spot their needs in advance. Meeting and exceeding expectations allows customers to develop strong brand loyalty with your organization.
  • More consistent data: Businesses with several points of entry for their customers often struggle with inconsistent data across their entire organization. Inconsistent data leads to duplicate records, missed opportunities for messaging, and departmental data silos. Managing data quality is making data available across your organization to open communication between teams and keep records consistent.
  • More effective marketing: When you lack customer demographic data, you waste money targeting an overly broad audience who may not even be interested in your products or services. Building databases full of quality data lets you define the attributes and behaviors of your ideal customers for more effective campaigns.

Recognizing data quality importance throughout your organization drives better decision-making and fosters trust in the information used for strategic planning. Experian’s tools can help you maintain your data quality platform so your organization succeeds and develops strong customer relationships.

 

Learn how data quality can help your business.