How Bad Data Affects Business?
Data is everywhere. Be it the small-sized business, mid-sized or the large enterprises, data finds a special place all around. It is used to analyze and predict the future requirements, it’s to gain the insights, it is to make the process efficient among others. So, if you get bad data, the whole organization is affected. As a matter of fact, data should not be the responsibility of only a specific department, all the teams should be held accountable for a good or bad data. They should work in tandem to get the good data and use it for their benefit.
As per a finding, almost 90% of the world’s data is the unstructured form of data- these are the data comprising of the intent signals, behavioural aspects, browsing habits, and others.
What is the Impact of Bad Data?
- Bad data costs businesses $9.7 Million every year.
- 77% of companies believe bottom line is drastically impacted by the poor data.
- In the B2B industry, the poor-quality data is wasting 27% of the time of representative.
- Leading to additional costs.
- Failures for the right functioning of automation activities.
- Lower customer satisfaction rate.
How to Know If it is Bad Data?
- Duplicate data
- Missing data
- Not suitable data
- Old data
Understanding the Collection of Data and Importance:
- Companies collect almost 75000 of the data points on a single individual.
- They invested in big data or are planning to invest (64%)
- Using graphical images for representing the data (45%)
- Designing metrics and measures (42%)
- Taking action on their big data (48%)
Consequences of Poor-Quality Data in the Process:
- Failed business strategies
- Bad productivity
- Increased expenditure of the organization
- Bad reputation
- Inaccurate reports
- Inaccurate dashboards
How Data was Wasted (Example):
- 21 cents of the media dollar spend by the organization (Forrester) was wasted due to bad data.
- It was around $16.5 million on an average.
How to Avoid your Data Getting Wasted?
- Data management a key to keep the data clean
- Regular updation of the data
- Data-driven sales can make the business profitable up to 6%
- Harley Davidson used data to increase the sales by 3000%.
- 94% of the businesses think their prospect data is inaccurate.
Why Does Bad Data Occur?
- Raw data from unauthentic sources is one of the major reasons
- Data from third-party sources would have flaws
- The bad data already in the CRM and automation system gives rise to more bad data
Things to Follow Along With Good Data:
- Should align with the marketing and sales
- Regular communication