One in two Australian organisations wasting budget through inaccurate data
Experian research shows 45 per cent of Australian organisations recognise the importance of data management but don’t have systems in place to improve its accuracy
Sydney, Australia, November 2010 – Half of Australian organisations admit their contact data is inaccurate, resulting in a waste of more than 10 per cent of marketing budgets, according to new research by Experian®, the global information services company. It reveals a concerning gap between organisations that recognise the importance of customer contact data but do not have the systems in place to ensure its accuracy.
The research of more than 300 Australian executives from major businesses showed that 56 per cent of survey respondents attributed accurate contact data to the enhancement of customer satisfaction. Other benefits identified included increased business efficiency and revenue generation.
Yet despite this, one quarter (25 per cent) of those surveyed do not currently measure data accuracy within their organisation. This figure increased to 36 per cent when looking specifically at responses from the government sector [Alter wording to reflect vertical focus]
The research examined the point at which errors in contact data occur, and 20 per cent of respondents believe that half or more of their data errors occur through initial data entry. What is more, one in five organisations do not have a solution in place to maintain and improve contact data.
Matt Glasner, Director of Experian QAS Australia, commented: “In today’s highly competitive environment, organisations across all sectors are using data to get closer to their customers, understand individual needs and drive critical business decisions.
“The importance of data quality is widely accepted across most organisations. However, the challenge exists in balancing the increasing volumes of data captured by organisations with an effective data management strategy to ensure the information is accurate and relevant.”
A major component to manage data accuracy is the allocation of ownership: assigning a specific department to take charge of data management across the entire organisation.
Glasner explained; “If data is managed effectively within an organisation it offers an invaluable asset in its ability to help underpin a single customer view. This can be achieved by ensuring all datasets across an organisation support one another and remain accessible across all departments. This ensures information is constantly verified and updated for use across different departments.”
However, Experian QAS’s research shows that one third (33 per cent) of respondents state that there is no single owner within their organisation responsible for contact data management. In addition, 15 per cent of those surveyed outsourced the management of data to a mailing house or data agency, suggesting that there is no internal quality control of their data.
Despite the current state of data management within organisations the research results reveal a potential shift in the prioritisation of data management over the next 12 months. 32 per cent of organisations specified plans to invest more in better contact data management practices over the next year, with a further 33 per cent considering further investment.
Glasner concluded: “Overall, the research suggests that organisations which do not have processes in place to enforce data accuracy are missing out on critical insights to help inform key business decisions. Not to mention losing out on potential revenue generating opportunities, such as cross selling and targeted promotional activities.”
In response to the increasing challenges that organisations face, a full report of the Experian research will be available in a whitepaper that reveals the current state of data collection and management processes within organisations.
To request a copy of this paper once its released please complete the form below: