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Mastering tomorrow’s markets: The data quality revolution

Jordyn Proulx
Jordyn Proulx

Experian recently launched our annual data quality research report that reviewed the growth of data quality in an era with several market disruptors at play. We surveyed business leaders across the United States to uncover the state of data management practices today and how data quality affects business performance. 

In the research, we found that while data quality scaled at the peak of economic stress during the pandemic, business leaders continue to realize the importance of investing in and democratizing their data operations—and see data quality as fundamental to their operations today.

In this study, we dive into three key topics:  

  • Market disruptors are testing businesses
  • Companies invest in data for better market response
  • Conditions of data quality today  

Market disruptors are testing businesses

  • 55% think these market disruptors will have a significant impact on their business 
  • 88% say market disruptors and challenges will intensify over the next year 
  • 36% are prioritizing improving and accelerating decision-making through data and insights 

In this ever-changing digital-first market, businesses need to quickly pivot and adapt to market disruptors such as increased costs, skill shortages, and supply chain issues. These challenges will only continue to evolve over the years; thus, data quality is essential for businesses to effectively respond to and overcome them. The research indicates that 31% of organizations are prioritizing their ability to better manage uncertainty this year. 

Consumer preferences have undoubtedly changed, and we are headed towards an even more digitally accelerated world. Today, consumers are interacting with brands across several channels and devices, so it’s not hard to believe that organizations are managing more data than ever before and ultimately rely on them to make important decisions. Our research shows that 36% of organizations are prioritizing improving and accelerating decision making through their data and insights. 

The top 5 market disruptors include: 

  • Artificial intelligence (AI) (33%) 
  • Increased operational costs (32%)
  • Skill shortages (29%)
  • Supply chain (27%)
  • Changing customer behavior and digital acceleration (27%) 

With the rise of new technology like AI, we are seeing more organizations respond by investing in automating their data quality and management programs. Automating data quality activities can help businesses overcome skill shortages and reduce operational costs, while adapting to digital acceleration and new market innovations. 77% say data quality automation will be important to their organization moving forward. 

Companies invest in data for better market response

  • 87% recognize that high quality, trusted data plays a critical role in responding to market disruptors and challenges 
  • 91% say solid data foundations can strengthen their response to organizational changes  
  • 93% say data quality is fundamental to business operations going forward 

It’s no secret that data quality is top of mind to respond to market disruptors for businesses leaders across multiple industries. With the goal of improving business agility and data quality in mind, organizations are looking to invest in new technology that is easy to use and enables them to leverage automation for regular monitoring, reporting, and visualization. Investing in data quality ultimately helps businesses develop, utilize, and manage insights more effectively and efficiently. 

Data observability is also a growing focus this year and we believe that this supports the reason why businesses continue to see data quality as foundational—they are going above and beyond by checking the systems that carry and process data to make sure they are not impacting data quality. Our research revealed that 79% say data observability helps them reduce risk across the business and market response.  

Here is what businesses can expect to benefit from investing in data quality: 

  • Improved customer experience (42%) 
  • Greater business agility (39%) 
  • Improved competitiveness (35%) 

Conditions of data quality today

  • 95% of organizations are hiring or looking to hire data roles in the next 6 months 
  • 60% saying their data quality has improved over the last 12 months 
  • 75% say poor quality customer contact data impacts their operational efficiency

Evidence in the research suggests that the number of businesses actively investing in data quality has increased in efforts to tackle the challenges experienced by poor data quality. In fact, 43% are hiring data quality analysts in the next 6 months. When businesses invest in their data roles and develop their skills, they are also investing in data quality management. Key drivers for this initiative include increasing operational efficiency and improving customer experience.

No matter the industry, bad data negatively affects market response and business performance. In fact, we see that poor data quality can impact an organization by compromising business agility and overall ability to quickly adapt to changing market conditions. When left unaddressed, these data challenges inhibit a business’ ability to understand their customers and deliver a personalized customer experience.  

Our research shows that respondents who exceeded annual goals and targets have one thing in common: the adoption of data quality automation. On top of investing in skill sets, implementing automation of data rules and processes to develop best practices is key to improving overall data quality and unlocking its benefits.  

Download the full report to dive deeper into our research on the growth of data quality and how organizations across all industries are implementing strategies to respond to market changes and consumer preferences. 

Download the report

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