What are the benefits of data quality and how it help businesses?
With the digital world growing competitive by the day, everyone is trying to understand their customers better and make finance, product development, and marketing decisions based on real data for a better return on investment (ROI). If you don’t make use of data, there is a chance you will lag behind or, at least, use more money and energy to keep up with your data-driven competitors. That said, data needs to be accurate and of high quality to be useful.
Read out the impacts of poor data quality.
Bad data is misleading and would be even more detrimental to your business than a lack of data at all. Organizations may also be forced to abide by data quality guidelines because of compliance issues. Data-related regulations are evolving almost as fast as the digital world itself, and it is becoming crucial that organizations apply proper data management strategies. If your business’s data is not properly maintained or organized, you may struggle to demonstrate compliance. Regulations such as GDPR, CCPA, FR Y-14Q reporting dictate organizations to have stronger trust around the data within and sent externally to the company along with several fines and litigation possibilities. Organizations that find themselves in possession of sensitive personal and financial data such as banks may particularly face more stringent data management prerequisites, if not complied.
Let us see the benefits of data quality. Good data quality enables,
1. Better decision making
Good quality data not only leads to more accurate and realistic decision making but also boosts your confidence as you make the decisions. It takes away the need to guesstimate and saves you the unnecessary costs of trials and errors.
2. Better Targeting
As part of the value chain proposition, it’s critical you know who your prospects are – something that you can only manage analyzing and understanding data. Using high-quality data from your current customer base, you can create user personas and anticipate the needs of the new opportunities and target markets.
3. Effective Marketing
There are many forms of digital marketing out there, and each one of them works differently for different products in various niches. One of the benefits of good data quality is, that will help you identify what’s working and what’s not. For example, if you are running a social media campaign and there are no prospects coming from Instagram, but Facebook seems to bring them in in droves, you can either ditch Instagram and switch all your focus to Facebook or review the approach you used on Instagram for a more successful campaign.
4. Better Customer Relations
You cannot succeed in any industry if you have poor customer relations. Most people only want to do business with brands they can trust. Creating that bond with your customers starts with understanding what they want. You can create customer personas using the information you already have in your database to imagine their interests and preferences. Having good quality data also helps you prepare proper marketing content and avoid spamming and message duplication, which can be annoying
5. Competitive Advantage
Being in possession of good quality data gives you a clearer picture of your industry and its dynamics. Your marketing messages will be more specific, and your projections in market changes will bear more accuracy. It will also be easier for you to anticipate the needs of your customers, which will help you beat your rivals to sales.