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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 truly be a data-driven organization? You have to trust that your data is accurate and reliable to make big decisions..

Many businesses find that the data they collect simply isn’t reliable enough. According to our 2021 Global data management research study, 55% of business leaders don’t trust their data. That means over half of business leaders can’t make confident decisions using the data they collect.

You might be feeling overwhelmed at the thought of trying to improve—and maintain—your data quality. But tools from data quality leaders like Experian make it easier than ever to check and verify new and existing data. As your data quality improves, you’ll be able to make confident, data-driven decisions for your organization.

Let’s explore why data quality is important to an organization and how it actively helps your business.

Why is data quality important?

Data quality is essential for one main reason: 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’re mostly guessing at what your customers want. Worse still, you might be actively doing things your customers dislike.

Collecting trustworthy data and updating existing records gives you a better understanding of your customers. It also lets you keep in contact with 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 so you can take advantage of new opportunities or tackle challenges before your competitors.

If you want to preserve good data quality, you must constantly manage it to get 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 take a look at the benefits you get when you introduce a data quality strategy.

  • Lower mailing costs: Accurate customer data reduces the amount of undeliverable mail. Less undeliverable mail saves you money in postage cost—no more resending packages that didn’t make it to their destinations. 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. This keeps you from sending messages they don’t want and helps you spot their needs in advance. By meeting—and exceeding—customer expectations, you create goodwill and a strong relationship with your brand.
  • More consistent data: Organizations with several points of entry for their customers often face the problem of inconsistent data across the organization. Inconsistent data leads to duplicate records, missed opportunities for messaging, and departmental data silos. Part of 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 demographic data about customers, you waste money targeting an overly broad audience. People in a broad audience 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.
 

Learn how data quality can help your business.