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What the market is saying about data quality

Jordyn Proulx
Jordyn Proulx

Experian recently launched a data quality research report that surveyed over 500 business leaders across the United States on their perception of data and the quality of insights. In the research, we uncovered that organizations are managing more data than ever before and, when invested in the program, they are more likely to see business growth. In this study, we looked at three key areas:

  1. How much organizations trust their data  
  2. How they are scaling data programs
  3. How they are growing business with data  

State of trusted data

  • On average, U.S. organizations are managing 19 contact databases  
  • 72% say that email is the top channel they rely on to reach customers, followed by face-to-face, phone, and social media channels 
  • 85% say poor quality contact data negatively impacts business processes and efficiency 
 

Download the research

Today, organizations are managing an average of 19 contact databases at one time. That’s because there is more data than ever in this digital-first world—consumers are interacting with brands across multiple channels, several devices, and maybe even with different user accounts. The data that sits across those various sources enables an organization to make better and faster decisions, improve the customer experience, and innovate, as long as the data is accurate and actionable. That’s where data quality comes in.  

Our research shows that the majority of this data is being collected through online applications, allowing organizations to easily capture data at the point-of-contact with the consumer.  Businesses can also capture highly valuable information like email addresses, which 72% of organizations say is the top channel they rely on to reach customers.  

 While organizations lean on these insights to inform business strategy and build customer loyalty, it also becomes their responsibility to manage, protect, and secure the consumer data. This can be challenging when records are spread across various sources and business lines. The research tells us that 94% of companies see poor quality data impacting the organization, and only 50% see their CRM/ERP data being clean and leverageable.  

Several of the top challenges of maintaining high-quality data include:  

  • Lack of data quality monitoring  
  • Number of databases 
  • Significant data duplications  
  • Poor data collection capabilities  
  • Data tool incompatibilities  

Businesses are seemingly exceeding the volume of data that is realistically manageable, proving that more is not always better. Without the proper tools, resources, or strategy, too much data can hinder an organization’s ability to innovate and successfully deliver a unified customer experience.  

Scaling data

  • 85% say they need to automate data quality activities to overcome skill shortages, reduce effort, and speed up analysis
  • 8 out of 10 are improving their data quality by establishing data best practices or creating a center of excellence
  • 50% are looking to implement easy-to-use data technology for business users  

Organizations are responding to these challenges by investing more in their data quality and management programs by focusing on technology and skill development. Our research shows us that when organizations invest in growing their data maturity, they are more likely to reach and exceed their annual goals.  

In our research, we find that the majority of leaders are automating their data quality activities to overcome skill shortages, reduce effort, and speed up analysis. Automation is meant to bring several benefits to an organization that go beyond easing the data management process.  

Here is what organizations expect when they automate data quality:  

  1. Business resilience (91%) 
  2. Better customer experiences (91%) 
  3. Cost savings and operational efficiency (90%) 
  4. Business agility (90%) 
  5. Greater customer retention (89%) 

In a volatile market, organizations need to have the means to pivot and act quickly and effectively. By automating their data quality process, they can be confident that their information is reliable, and the decisions are trending toward success.  

Growing the business with data

  • 90% say improving data quality has had a positive impact on customer experience 
  • 91% say investing in data quality has positively impacted business growth 
  • 87% say that data quality is fundamental to the core of their business operations going forward 

In today’s rapidly transforming market, organizations must stay agile to stay afloat in the economy and meet their consumer’s everchanging needs. Data is the backbone of informing the business with key insights to make these game-changer decisions. Quality data equals quality decisions. And this is what drives business growth.  

When an organization innovates its data programs by investing in automation, technology, and skill development, they are able to reap the benefits of a data-driven organization. In turn, the top benefits organizations see out of investing in their data include:  

  1. Improved customer experience
  2. Greater business agility
  3. Accelerated business growth  

Our research also shows that 87% of businesses say improving the quality of their contact data is a priority this year. Realizing that consumers are constantly on the move from homes, jobs, and brands, contact data is vital to reach customers, build loyalty, and grow revenue.  

In 2022, we surveyed over 500 business leaders in the U.S. who believe data quality is critical to business operation and growth. Read our findings to see what your peers are doing across industries like finance, retail, health, and tech with their data quality.  

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