Data Quality: Why Data Is Becoming More Important Than Business Relationships
Data Quality : The way of working has changed significantly with the pandemic disrupting and digitising business operations like never before. According to a new study by Dun & Bradstreet, more than half of executives expect data quality to be more critical than personal business relationships.
The Future of Data study commissioned by Dun & Bradstreet shows that 53 percent of the executives surveyed expect that data will be more critical than personal business relationships. The study results also show that those responsible are concerned about data quality and its impact on their company. According to this, after Covid-19, customer loyalty is one of the most critical business priorities in the company for 40 percent of those surveyed. Sixty-six percent see more accurate data and 65 percent more complete data as a prerequisite to taking advantage of existing sales opportunities. For the Dun & Bradstreet study, 1,700 decision-makers in Europe were interviewed.
Poor Data Quality Affects Customer Loyalty
However, due to poor data quality, companies believe they cannot attract new customers (27 percent). Or to keep existing customers (25 percent). In addition, poor data quality and management make it difficult for companies to find new customers (22 percent). Or get accurate data on existing customers (20 percent).
The lack of accurate and high-quality data is having a severe impact on businesses. Missing data or inaccurate information about customers or suppliers means that 19 percent of European companies cannot secure a new contract with a customer, and a similar number even loses a customer (18 percent).
“It has never been more important for organisations to ensure they are armed with the best quality data. These help them identify new customers and retain existing customers,” explains Susan McKay, International CMO at Dun & Bradstreet. “They must access the right data, expertise, and resources to promptly reach potential customers with relevant services and provide them with fit-for-purpose solutions.”
Invest In Data Strategy And Expertise
Companies need to invest in their data strategy to ensure data quality is improved. On the positive side, nearly two-thirds (63 percent) believe their leadership understands the importance and potential of data, and 60 percent are willing to democratise data (meaning make it more accessible to employees) to improve decision-making and flexibility. In addition, companies use external support to improve their data quality. According to respondents, leveraging more third-party data could enable their business to support existing customers (62 percent) and attract new customers (60 percent).
Despite the challenges that sales and marketing teams face, effective data management offers promising opportunities to improve their operations. The majority believe that access to more data can support revenue generation (69 percent) and that effective data management can provide a competitive advantage (73 percent). Finally, 62 percent believe automating receivables will be essential to keep an eye on payment transactions.
Protect Yourself Against Opposing Market Forces With Data Quality
“Nowhere is this more evident than in sales and marketing teams. Turning to a trusted partner to create top-notch deals can be very valuable. And so to complete the overall picture for prospects and customers. With uncertainty in the economic environment expected to increase in the second half of the year, effective data practices are a must for any organisation looking to hedge against adverse external market forces,” said Susan McKay.