What is data quality and why is it important for your business?
In the current world of business, Data Quality is a hot topic to discuss. It is because everyone wants to talk about the benefits and the insights that data can provide. One main reason behind this is that data is one of the most valuable tools available to today’s marketers, agencies, publishers and media firms, and more.
Why is data quality important?
Data is only valuable if it is of good quality. Bad data is considered insignificant. In worst cases, it may cause businesses to make costly errors, leading to bad business reputation and causing minor consequences to your business. For example, if you have sent a product to the wrong address because of the wrong or incomplete data in your database, it causes added expense, and you lose the sales opportunity.
Let’s take another example, and you have sent some products more than once to the same customer because the name and address are spelled differently, or you have duplicate data in your database. Suppose you have 100 customers like these in your database; this means you are sending one product twice to these 100 customers. It can result in losing customers and brand image.
Therefore, it is essential to have good quality data to improve your productivity and customer loyalty. The following article gives a composite guide on what exactly data quality is for a better understanding.
Data Quality is the measure of the condition of data on five factors mentioned below:
In making purchasing decisions or other decisions related to a company or client, data accuracy is one of the most important factors to consider. The term “accuracy” refers to how effectively data depicts the real-world conditions intended to represent. Inaccurate data can cause issues that might lead to incorrect assumptions and decisions as those judgments will be based on erroneous data, the actions you take which might not provide you the desired results.
There are no gaps in data if it is complete. If you have gaps in data which means it is incomplete, then the provided information will not be helpful. On the other hand, if everything needed is collected successfully, the business will run smoothly.
Consistency refers to the lack of differences across several versions of a particular data item. Whether you are comparing a data item or discussing its counterpart, everything should be the same. If your data is not consistent, it can result in improper coordination among your employees, and unknowingly they will work against each other.
Reliability of data can be defined as complete or accurate data; if we can trust that data or not. Therefore, ensuring that data is safe is essential because it will help you maintain data security and compliance.
Data generally becomes less critical if it is not up-to-date. If the data represents events that have recently happened, it will be more relevant and valuable. Using outdated data can cause wrong results; therefore, your data needs to be up-to-date.
So, here is a question for you: what quality of data is in your organization? If you haven’t measured it yet, this is the right time to measure it and take the right actions! If you need more information regarding it, please contact us.