Let’s get this clear right from the start. Bad data costs your organisation money. And in case you’re wondering how much, a figure has been put on the price of each piece of data that has gone rogue. Most organisations do not make the effort to measure the quality of their data, which is a perfect example of the saying , “you can not manage what you can not measure”.
Bad data is basically erroneous information which could be missing, not correct, or simply not accurate. It can also be duplicate, or outdated information. And that might be a contact name with the wrong title, an email address missing a full stop, or file note to accompany an important contact. But whatever it might be, it’s holding you back. Research shows that 40% of the anticipated value of all business initiatives is neven achieved because of poor data quality both in the planning and execution phases.
And, before we get onto the actual cost of all this bad data, bear in mind that the impact of erroneous information can be huge. It might cause you to send out, or email material to wrong contacts, with the result of annoying existing good customers. Then you can get the sales team competing for the same leads. And never mind the extra costs running duplicate records through the marketing automation and CRM systems.
So, let’s cut to the chase and look, for example, at the cost of a bad CRM data records. Figures in the industry suggest that its costs around 90 cents to prevent a good CRM record going bad. To correct a bad data entry, it costs around ten times more, €9, to put right. However, its suggested that to do nothing costs an incredible €90, which is 100 times more than putting right. Frightening eh?
Many of our customers have put in place a data quality process by design using Celsius Cloud: they can select what data needs verification, standardization, cleaning, deduping … and have the corrected version sent back to their CRM, Salesforce, Marketo, Eloqua …
It Gets Worse
Yes, but it gets worse. If you look at industry figures, then it is reckoned that the growth of corporate data is in the region of 40% per year. What’s more, that the average database is made up of an amazing 20% of bad data entries. So, if you take even a small database of say 10,000 contacts, then it’s costing you €180,000 in lost sales and potential impact upon sales. And if your database grows by 40% a year, then you can quickly calculate the impact that will have on your company.
Now, start to clean the data and that impact will gradually be reduced until you are actually making savings. Indeed, figures suggest once you’ve reached that point of cleaning up your database and making savings, you can actually start to generate more revenue as you go forward with your clean list.
When data quality is not measured, organisations can only make assumptions about it and therefore continue to experience inefficiencies, excessive costs, customer issues and compliance risks. An structured approach such as the once provided by the Celsius Cloud gives organizations a solid foundation of facts rather than perceptions. Bad data costs money, plain and simple. And if you don’t put it right, then you are literally pouring money down an ever-widening drain.