Bad Customer Data Costs You Millions

Bad Customer Data Costs You Millions Dirty Data Bad data equals: Bad data is caused by: • Duplicate records · Recovery costs · Lost customers • Workaround costs · Lost opportunities 1. Inputting errors on the company's side 2. Inaccurate or incomplete information supplied by client Causes of inaccurate or incomplete information: 17%3 A company can send over 1 billion pieces of direct mail each year. The average return rate is 10%. That's $25 million in lost postage. 44million = data flawed 17% of the U.S. population moves each year. That's 44 million people, many of whom are unsure of their full address. 20% of contact data is flawed when saved. Within a year, 1/3 of the information in a database can become outdated. 1.5 million New addresses are created each year and added to the USPS national address database. Many of these addresses carry new and unfamiliar directional or suffix information. Many B2B marketers report that 60%-70% of all business contact information changes during a given year. Human nature often prompts people to state that they live in one town while giving the street address and zip code of another - especially if the next town over is a more "prestigious" address. Over the last 3 years, 79% of U.S. organizations have experienced at least one negative consequence as a result of data accuracy issues. Intangible and lost opportunity costs also arise from the wasteful use of an organization's assets. America is "the great melting pot" and it's reflected in street names. Customers may not always have a handle on the correct spelling of their own street name. Cost of bad data to a company's reputation When mall or packages don't arrive, pressure is put on your customer support team. - Your brand can be damaged by poorly targeted or irrelevant mail, incorrectly addressed mail, or multiple pieces sent to the same person. A It could result to legal actions taken by customers against your company. Benefits of increased data quality - Best practices in data quality can boost revenue by 66%. - A data strategy that solves confilicts at the source can lead to a 25% Increase in converting inquirles to marketing-qualified leads. Unifying the data, whether into one database or by using technology for virtual integration, can lead to a 12.5% uplift in conversion rates to the next stage. - Clean data can reduce contact build time with a prospect by 5%. The study reveals that while 87% of U.S. organizations have a documented data quality strategy, 73% still rely on at least one manual task to manage the accuracy of their contact data. Those organizations that have made improvements to data quality processes in the past two years have generated an average of $1.2 million in incremental profits. Sources: Experian QAS Olobal Research Statistics henww.grodi.nitrendn in address_management.pd :2011 hip://www. http://www.albusinosa.com/govemment/3581425-1.html ep optimizeyourdataquality.wordpress.com/2009/01/26inrease-your-revenue-by-66-with-data-quality http:/www.marketwire.com/press-release/Latest-Experian-QAS-Research-Demonstrates-Bottom-Line-Uplift-From-Improvements-Data-1384414.htm