Xperience Group has conducted a unique study into how businesses manage their data. The results highlighted a staggering 79 per cent of UK businesses face data quality challenges due to lack of appropriate systems and processes for effective data management.
The Xperience Group study found only 21 per cent of businesses surveyed believe their customer records are complete, which means a staggering 79 per cent are unable to verify their customer records are up to date. This suggests most businesses do not have the systems and processes in place to manage data quality. Subsequently effectiveness of communications may be compromised which can have negative implications for customer service. According to Experian, 66 per cent of companies have experienced deliverability issues within the last 12 months, mainly due to inaccurate email address data.
The report highlighted only 43 per cent of businesses use a centralised CRM solution to manage customer data, with 57 per cent utilising spreadsheets, paper, email clients or disparate systems to manage customer records. This is worrying as these means are vulnerable to errors, cyberattacks and breaches, affecting decision-making, business reputation and ultimately profits, with the average company losing 12 per cent of its revenue as a direct result.
66 per cent of businesses found duplicate data in their data management systems and 59 per cent don’t have a consistent data cleansing strategy. This is alarming as data is constantly growing, making it more difficult to manage. What’s more, B2B data degrades at 20 per cent every year, which in turn leads to inefficient marketing efforts, wasted postage and resources.
David Curtis, Sales Manager at Xperience Group, commented, “Reliable data is essential for businesses to reach the right audience and meet customers’ needs. Nevertheless, our study shows there are many businesses which are yet to make data quality an organisational priority and put the right tools in place to manage this complex issue. We hope this study will urge UK SME’s to put data quality at the heart of their business which will help them remain agile in this highly competitive market.”
Although data quality remains an issue for many SME’s, Xperience Group believes this is an opportunity for businesses to acknowledge the problem and understand the benefits of maintaining data quality.