3 ways data quality can differentiate your business.
As businesses attempt to prepare for transformational technologies like autonomous vehicles, artificial intelligence and the Internet of Things, many find themselves grappling with the complexities of data and analytics. The role data plays in enabling these future technologies is critical—but one that will be undermined if businesses do not make data quality a priority.
Based on in-depth research and interviews with industry executives, analysts and real-world users, The Data Differentiator: How improving data quality improves business, a Forbes Insights white paper sponsored by Pitney Bowes®, discusses the benefits of good-quality data and the costs of poor-quality data.
Although potential sources and uses of data are still emerging in many cases, there are many ways we already see data being used to help organizations differentiate themselves, both in the present and the future.
1. Customer experience
Data is central to the single customer view that organizations require to better understand their customers and tailor hyper-personalized engagement, especially as organizations seek to differentiate themselves on the experience they provide. Businesses that can attain better understanding of customers by harnessing not only their own data, but also the unstructured data their customers create in the form of social media and other types of messaging, will win at loyalty and engagement.
2. New products and revenue streams
Organizations that become adept at generating and managing their own data may discover new revenue streams by licensing the data to other users. Internally, data about how, when and where products are used may help designers or engineers refine products or launch entirely new ones, while other companies may exploit potential in existing data sets.
3. Operational efficiency
Improving data quality can improve efficiency in various ways. De-duplicating customer records, as one example, could result in lowered mailing costs.
How does the quality of data impact a business?
Briefly, good-quality data can provide the three differentiators discussed by enhancing four key factors in a company’s success:
- Decision-making: The better the data quality, the more confidence users will have in the outputs they produce, lowering risk in the outcomes and increasing efficiency.
- Productivity: Good-quality data allows staff to be more productive.
- Compliance: In industries where regulations govern relationships or trade with certain customers, especially in finance, maintaining good-quality data can be the difference between compliance and millions of dollars in fines.
- Marketing: Better data enables more accurate targeting and communications, especially in the omni-channel environments many organizations are striving toward.
Even more briefly, yet self-explanatory, the negative impacts of poor-quality data can include:
- Undermining confidence
- Missed opportunities
- Lost revenue
- Reputational damage
To learn more about data quality and the value it provides, read The Data Differentiator: How improving data quality improves business, a Forbes Insights white paper sponsored by Pitney Bowes.