Experian survey reveals that Singapore businesses at risk of losing millions of dollars from unreliable contact data
Research highlights cost of inaccurate contact data and need for robust strategies to maintain data quality
Singapore, July 28, 2011 — Experian®, the global services company, today released findings from its QAS Data Quality Survey, highlighting the importance businesses in Singapore attach to the accuracy of their contact data . The survey also emphasises the challenges companies face in ensuring data quality and the impact data inaccuracies can have on their bottom line.
Experian’s survey revealed that despite 88 per cent of businesses implementing a documented data quality strategy, 94 per cent do not trust the accuracy of their contact data. Reasons cited by respondents for the lack of trust include human error (75 per cent), lack of relevant technology and/or inadequacies in current technology (54 per cent) and inadequate data quality strategy (34 per cent).
“While it is encouraging to see that companies recognise the importance of high data quality and have strategies in place to ensure data accuracy, the lack of trust highlights that these are often not followed through,” said Graeme Beardsell, Chief Customer Development and Marketing Officer, Experian Asia Pacific. “As business data continues to decay by approximately 37 per cent each year, it is imperative that organisations re-evaluate strategies to stay on top of the data quality issue. It’s equally critical to have a way of measuring the accuracy of their data over time, in order to be successful and maximise every dollar spent on customer engagement.”
Organisations also believed that about 24 per cent of their data was inaccurate, directly impacting on their bottom lines. The data showed that an average of 14 per cent of departmental budgets are wasted due to contact data inaccuracies. Companies also reported that they had lost potential customers due to inaccurate data input (39 per cent) and lack of complete data (28 per cent). Other issues cited included sending emails to the wrong address (41 per cent), duplicate mailings (37 per cent) and misspelled names and address details (40 per cent) negatively impacting the customers’ perception of an organisation’s brand.
From an industry perspective, respondents in the financial services industry were more likely to experience challenges linked to data inaccuracies, compared with businesses in other industries including manufacturing and automotive, retail and distribution, utilities and telecoms and other public sector and non-profit organisations.
Experian has devised a four-point approach to help companies in Singapore better align systems and processes to break the causal chain of inaccurate contact data, leading to loss in efficiency, lost business opportunities and low levels of customer satisfaction, Experian believes that companies in Singapore need to consider the following:
1. Re-examine your data quality strategy – Companies need to focus on strategic objectives and ensure they are aligned with business goals. This can increase efficiency and cost savings, while improving customer communications and service delivery.
2. Align organisational processes with the data quality strategy – Companies need to identify common errors by reviewing the quality of existing data and how it flows through the organisation. The data then needs to be cleaned through the removal of duplicate records and incorrect data. This will help create a single customer view and further reduce contact data errors.
3. Select the right technology tools to support your strategy – To do this, companies need to first analyse their use of data and which data is used most frequently. This will enable the organisation to prioritise the data and determines how best to clean it. The data entry point should also be examined to find out the most effective tools to use for each channel.
4. Outline processes for continued measurement and improvement – Companies need to regularly review data quality strategies, evaluate the roles and responsibilities of staff involved, and revisit the viability of processes and technology tools that have been put in place to ensure a high-quality database. These reviews help measure the effectiveness of the overall process while identifying areas for further improvement.
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About the Research
Singapore was part of a global survey commissioned by Experian and conducted by Dynamic Markets Limited. The research was conducted between 23 and 30 November 2010 with a sample of 1,321 from seven countries (UK, Netherlands, France, USA, Australia, New Zealand and Singapore). Of these, 102 respondents were from Singapore.
The representative sample covered a wide variety of industry sectors including financial services, public sector and non-profit, manufacturing, automotive, education, retail, leisure, utilities and telecoms, and transport and travel.
About Experian Marketing Services
Experian Marketing Services delivers best‐in‐breed data, analytics and platforms into multiple regions around the globe. It is focused on helping marketers more effectively target and engage their best customers through email, digital advertising, customer data management, customer and competitive insight, data enrichment and list rental, modelling and analytics, and strategic consulting. Through these capabilities, Experian Marketing Services enables organizations to encourage brand advocacy, create measurable return on investment and significantly improve the lifetime value of their customers.
About Experian
Experian is the leading global information services company, providing data and analytical tools to clients in more than 80 countries. The company helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision-making. Experian also helps individuals to check their credit report and credit score, and protect against identity theft.
Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended 31 March 2011 was US$4.2 billion. Experian employs approximately 15,000 people in 41 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.
For more information, visit http://www.experianplc.com
For more information on Experian Asia Pacific, visit http://www.experian.com.sg
Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc.