Study: Poorly Managed Customer Data Lead to Lost Revenue

Businesses worldwide lose an estimated 6% of annual revenue due to poor management of customer data, according to a survey into global data quality by QAS, a division of Experian’s Marketing Services Business. In comparison, businesses in the United States admit to losing 7.3% of revenue.

“The effect poorly managed data has on global organizations goes beyond the financial repercussions created by missing business opportunities,” Joel Curry, vice president of business development for QAS, said in a statement. “Poor data quality affects how consumers perceive an organization’s brand, and makes compliance with government regulations more difficult.”

Curry said that businesses must nurture a data integrity culture from the ground up so that each individual recognizes the value of customer data and the importance in maintaining its integrity.

Globally 75% of commercial businesses believe that they are losing money through missed business opportunities because they are unable to quickly and effectively profile customer and prospect data due to data quality issues. In the U.S., 77% of companies admitting that shortcomings in data quality are hurting business.

The research also shows that, on a global scale, more than 50% of organizations plan to invest in better data management practices in the next 12 months. Three-quarters of the “profitable” companies plan to do so, as do more than a third of those breaking even or taking a loss.

“This shows the firm commitment to improving standards in data integrity across organizations worldwide,” Curry said.

The research was conducted in June 2005 to establish the levels of accurate customer data held within organizations and how important this data is perceived to be. Dynamic Markets was commissioned by QAS to speak to 550 respondents in large public and private organizations in Australia, Belgium, France, Germany, Luxembourg, the Netherlands, Singapore, Spain, the U.K. and the U.S. Sectors represented by the sample include banking, insurance, finance, retail, telecoms, utilities, leisure, tourism, travel, and the public sector.

Partner Content

Hincapie Sportswear Finds Omnichannel Success in the Cloud - Netsuite
For more and more companies, a cloud-based unified data solution is the way to make this happen. Custom cycling apparel maker Hincapie Sportswear has leveraged this capability to gain greater visibility into revenue streams, turning opportunities into sales more quickly while gaining overall operating efficiency. Download this ecommerce special report from Multichannel Merchant to more.
The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.