Successful marketing strategies are data-driven. While gut instincts should certainly play a role in the brainstorming process, to add a creative flair, and to ideate the “next big idea”, marketing decisions, whether strategic or tactical, rely on data to inform and support them.
However, data can be unreliable, incomplete, or inaccurate, which can lead to poor decision-making and wasted resources. Poor data quality costs US businesses an average of $15 million per year. (Gartner)
According to research by Experian, 94% of respondents see poor quality data impacting their organization, including by wasting resources or additional costs and by damaging the reliability of analytics.
However, maintaining a clean database can be challenging. According to the study, 92% of business leaders have had challenges maintaining good quality data.
Data Quality Challenges
The top three data quality challenges are:
- Lack of data quality monitoring (37%)
- Volume of data or the number of databases (35%)
- Significant data duplication (35%)
On a positive side, 87% of businesses say improving the quality of their contact data is a priority this year. Additional findings include:
- 87% of leaders say that data quality is fundamental to the core of their business operations going forward
- 90% of leaders say improving data quality has had a positive impact on customer experience
- 91% say investing in data quality has positively impacted business growth
Marketers need to prioritize data quality to ensure that they can make informed decisions that drive business results.
4 Consequences of Poor Data Quality
Poor data quality can lead to inaccurate insights, ineffective campaigns, and lost revenue. Here are some of the most common consequences of poor data quality:
1. Inaccurate Targeting
Poor data quality can lead to inaccurate targeting, which means that marketing campaigns are less likely to reach the intended audience. This can result in wasted resources and lower ROI.
2. Reduced Customer Satisfaction
If marketing data is inaccurate or incomplete, it can lead to poor customer experiences. For example, if a customer receives a promotional email for a product they’ve already purchased, they may feel frustrated and annoyed.
3. Lost Revenue
Inaccurate data can lead to lost revenue, as marketing campaigns are less effective at driving conversions and sales.
4. Damaged Reputation
If customers receive irrelevant or inaccurate marketing messages, it can damage a brand’s reputation and make customers less likely to engage with future campaigns.
5 Ways to Improve Data Quality
To ensure data quality, marketers must take a proactive approach to data management. Here are some steps they can take to ensure that their data is accurate and reliable:
1. Use a Data Management Platform
A data management platform (DMP) can help marketers centralize their data and ensure that it is clean and accurate. A customer data platform (CDP) is a data management system that consolidates and integrates data from multiple channels and sources to build a single, unified profile around each customer. This data can then be segmented to personalize marketing messages tailored to specific customer segments.
2. Validate Data Sources
Marketers should validate their data sources to ensure that they are reliable and accurate. This can involve checking the source’s reputation, reviewing the data’s accuracy, and confirming that it is up-to-date.
3. Implement Data Governance
Data governance involves creating policies and procedures that ensure the accuracy and reliability of data. This can include data quality checks, data validation processes, and regular data audits.
4. Train Staff
Marketers should provide training to their staff on how to collect, manage, and analyze data. This can help ensure that everyone is using the same processes and following the same data quality standards.
5. Regularly Review Your Data
Marketers should regularly review their data to ensure that it is accurate and up-to-date. This can involve conducting regular data audits, reviewing customer feedback, and monitoring campaign performance.
Data Management Solutions
Need help with keeping your data clean and organized? Let Porch Group Media help you take control to drive better business results.