With subpar data costing U.S. companies 12 percent of annual revenues, hygiene has become critical to the bottom line.
Data has been described as the very lifeblood of a company, but even that doesn’t completely describe it. Used to maximum effect, it enables a business to thrive. One executive called it “a game-changer.” Another said that data, when strategically leveraged, is “no longer a nice-to-have, it’s a must-have for any company that wants to compete.”
All true. Data allows organizations to put their best foot forward. It enhances their reputations and their ability to retain customers and employees. It informs employers’ ability to manage costs, whether by assessing workforce health risks or designing more effective employee benefits plans. Ultimately, it enhances their bottom line.
But the caveat about data is an enormous one: Not all of it is created equal. Dirty data — i.e., data that is outdated, redundant or inaccurate — hampers companies in the extreme. It has been estimated, in fact, that subpar datacosts U.S. businesses the staggering total of $3.1 trillion annually. Broken down further, it can cost any given company 12 percent of its annual revenues.
Here are some other data-related insights, courtesy of ZoomInfo:
• 62 percent of businesses depend upon data pertaining to marketing or prospects that is between 20 percent and 40 percent incorrect;
• 10-25 percent of B2B database profiles contain inaccurate information;
• 40 percent of a company’s goals go unfulfilled because of dirty data.
Again, staggering. It is also indicative of just how high a priority datahygiene needs to be. It has been said, in fact, that good data can make a struggling company successful, and a successful company a powerhouse. Bad data, on the other hand, results in wasted time and lost opportunities, ineffective marketing strategies, poor engagement and (again) lost revenue.
Human error is the most common reason for dirty data — whether because of miscommunication or subpar training or even lousy handwriting. It is estimated that the error rate hovers around one percent when it comes to data entry, and from a dollars-and-cents standpoint the 1-10-100 rule comes into play, just as does with all matters of quality: That is, it costs $1 to correct an error upon entry, $10 to do so later and $100 if it is not corrected at all.
Another issue is data decay, which is constant. Of the contacts listed in a B2B or B2C database, 43 percent will change phone numbers every year, 37 percent will change email addresses, 34 percent will change job titles and 30 percent will change jobs. In addition, 34 percent of companies will change names. All of that will, of course, impact sales and marketing forces, and underscore the need for data hygiene.
Experts recommend following these steps to eliminate dirty data:..
