The prevalence of inaccurate data means organizations are struggling to meet strategic goals, according to a new report from Experian Data Quality, a part of Experian Marketing Services and a provider of contact data management software and services.
The company’s “State of Data Quality” study shows that on average, U.S. organizations think one-quarter of their data is inaccurate, which negatively impacts business intelligence, marketing and customer engagement efforts.
The level of inaccuracy is primarily due to human error, which occurs from the lack of a coherent, centralized approach to data quality, according to the study. Two-thirds of companies are missing this type of centralized approach, and the lack of centralization prevents organizations from analyzing, improving and controlling data problems by dividing resources and further siloing information.
“The increasing sheer volume of data means that more companies are looking to make better-informed decisions based on the information they hold,” Thomas Schutz, senior vice president, general manager of Experian Data Quality, said in a statement. “Data quality is the foundation for any data-driven effort, but the quality of information globally is poor. Organizations need to centralize their approach to data management to ensure information can be accurately collected and effectively utilized in today’s cross-channel environment.”
The study found that organizations are looking to better coordination across the many channels they use, with 87 percent of organizations now engaging in cross-channel marketing. But the majority of organizations face challenges in this area of their operation due to inaccurate information and a lack of consumer data. This data deficiency is forcing 94 percent of organizations to append additional data to their customer contact information.