Data Quality Comes at a Cost – What are You Prepared to Pay?
With Shop.org just around the corner, I am reminded of a conversation I had at last year’s event. One of the attendees (Jim from a large retailer) told me that they have data quality problems but the data was good enough and asked why should they invest in improving something that was acceptable.
Initially, I was surprised that Jim would be happy with data that was not optimal, so, I asked, how do you know the data is good enough. The answer, nobody really complains about it – Wow!
It turned out, nobody was responsible for data quality or governance at a company-wide level. Each individual department took a different view on what was good enough for them. No consideration was given to how the customer engages with other parts of the organization from marketing to sales to shipping. Or, how the company can make informed decisions on data that cannot be trusted. I was not their problem.
Unfortunately, this is a story I hear too often. Most retailers don’t even know how big the problem really is, how much it is costing them in; lost sales, customer experience or brand image. Research has shown that;
- 94% of retailers are not satisfied with their ability to use customer data
- 66% of retailers face data quality challenges when dealing with customer data
- 70% do not have the capability to create single view of customer from research to purchase and beyond
While retailers are obsessed with the art and science of customer engagement, many are ignoring the fundamentals – like contact data: email, postal addresses, and phone numbers. The very data that drives customer engagement across the organization. The data that drives initiatives like personalization. The data drives trusted insights into purchasing patterns. Retailers that have successfully governed their data see;
- a greater return with increased margins
- faster time to market for products/services
- higher conversion ratios on marketing campaigns
- and improved customer loyalty and brand awareness
You must decide, are you a data-driven retailer or are you willing to pay the price for data that you cannot trust?
Find out more about Informatica Data as a Service (DaaS) and Discover the Three Reasons Retailers Need Valid Contact Records
If you are attending shop.org this year drop by our booth #1933