Data Strategy Magazine published reports of a study carried out in the UK by Kalido where they researched companies with a turnover higher than $500 million and found less than half of the respondents satisfied with their database quality. In the report Data Strategy Magazine published:
Nearly one quarter of respondents (24 per cent) said they were not very or not at all satisfied with the consistency and accuracy of master data in their company and that data issues were many and constant. Just over one third (35 per cent) said they had no data issues at all. The largest group of 41 per cent fell in between, being somewhat satisfied, but with a few data issues still to resolve.Given that marketing organizations of such large companies need to rely so heavily on their data for driving new revenue, it's surprising how little attention is paid to its upkeep. Perhaps if their customer and marketing databases were valued monetarily as a company asset and this value was tracked through the year based on how much of the data is active and useful in developing future business, it would get the kind of attention needed. While marketing budgets are generously allocated towards events and campaigns aimed at generating new leads, very few VP's of Marketing or CMO's apportion an amount towards maintaining, cleansing and enriching existing data which incurred a sizable cost to build earlier. The article in Data Strategy goes on to say:
As part of the study, companies were asked to put a financial value on the costs savings or increases in revenue that might result from data quality initiatives. The majority (57 per cent) were unable to answer. Among those who could, the average benefit was put at $38 million.That's no small change in potential revenue and it may have been possible by budgeting a fraction of that amount in data cleansing and putting in more stringent policies to keep data quality in check monthly or at least quarterly. It's not just the large companies in the UK which suffer from data quality and management issues, we can only wonder what the results would show if the same survey was carried out on the Fortune 500 companies. The company database is a valuable asset, treat it like one!