Why Data Quality Means Profitability

Why Data Quality Means Profitability

DATA QUALITY AND ITS SIGNIFICANCE

Not so long ago, computers ran at a fraction of the power that they are operating at today, and smartphones were a rare sight. 

Technology certainly is evolving at breakneck speed, and the world is gradually becoming digitised and more connected than ever before. Data is becoming easier to gather and process, it has become the foundation of many important decisions that can drive a brand’s growth. 

However, information changes all the time, and bad data makes your business vulnerable to losses. Maintaining data quality is therefore a must to keep data clean and actually useful to your organisation.

WHY DATA QUALITY IS IMPORTANT

The importance of high-quality data in the modern world cannot be overstated. As data is constantly changing, data managers have to make sure that their information is up to date and valid. Inaccurate data can be quite costly and will end up causing damage to your profitability. Studies show that brands lose around 20% of revenue because of inefficient data quality. As such, a well-maintained database needs to have the following qualities:

  • Data accuracy

Maintaining data quality keeps the information on point, and great accuracy is highly valued in any data-oriented decision-making. It results in better decisions, and, in turn, good decisions result in less expense, less waste and more returns.

  • Data completeness

Sometimes, we end up skipping great leads just because they do not include complete contact information. Other times, we may make the wrong decisions as incomplete data tends to result in misinterpretation. High-quality data is intact and should not have any missing components, so you can work with it easier, and it paints a more truthful picture of the tactile world it represents.

  • Big but irrelevant data

When harvesting data, you sometimes get more than what you actually bargained for. You end up with a lot of non-essential information, with the data that you need is sandwiched between the fluff. No one wants junk getting in the way of data that you actually need, which is why your database must be clean and well-maintained.

  • Validity and consistency

High-quality data has a consistent format and can be verified with other sources. Valid and consistent data makes analysis less of a chore as it is not difficult to work with. Furthermore, it is highly accurate and credible, so you are sure that you are working with real information that can drive great decisions.

BENEFITS OF HIGH DATA QUALITY

Keeping outdated data and fluff out of a database engenders some useful advantages. These most notably include the following:

  • Well-informed decision-making.
    If you have the best possible set of data in your hands, you’re more likely to make better, profit-inducing decisions. This is a whole world apart from fumbling with what little information you have and figuring things out through trial and error.
  • Better strategies.
    As high-quality data helps you make better decisions, your choices help you create more comprehensive strategies to help you tackle your goals in a more efficient and achievable manner. Your data can help direct the steps that you should take towards your objective.
  • Competitive edge.
    High-quality data resulting in highly-informed decisions and strategies gives you an advantage over the competition. It lets you figure out trends much faster than your rivals and help you come up with decisions that will put your business a few steps ahead.

DATA QUALITY TRANSLATES TO PROFITS

When your data is accurate, relevant and reliable, you get to make better decisions and come up with strategies that will make your organisation stand out from the competition. All of these lead to higher profits for your business. With this in mind, maintaining data quality should be on top of your list if your business is to thrive in this modern data-driven world.

About Sam P

EnterpriseZone Staff Writer

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