“Data Quality Management”
Organizations
from different industries, with disparate goals, and operating in dissimilar
environments will each develop their own, specific, custom data storage
process. As technologies develop at a rapid pace, the Internet has a major
impact on global business as organizations, regardless of size, potentially
have access to a universal customer-base; still the most important tool
deployed by any established marketing department is the Data Base.
Creative,
strategically planned and implemented marketing campaign will not rescue the
organizations unless until accurate data is used.
A partnership
between the business and technology groups is essential for any data quality
management effort to succeed. The business areas are responsible for
establishing the business rules that govern the data and verifying the data
quality. The Information Technology (IT) is responsible for establishing and
managing the overall environment – architecture, technical facilities, systems,
and databases – that acquire, maintain, disseminate, and dispose of the
electronic data assets of the organization.
“Inaccurate data creates inaccurate business processes.”
Smart
organizations are concerned about maximizing the return on their investment in
technology. What follows are some likely returns from data quality management
and customer data management. Not all of these scenarios could apply to every
organization, but every organization will derive some benefit from their data
quality and customer data management initiatives.
“Better to collect good data than to correct bad
data.”
Benefits
of a Data Quality Management Initiative
1. Back-office
improvements. Data quality management can lead to benefits such
as unified billing, accurate revenue accounting, and accurate contract
billings, unified credit management and reduced mailing costs.
2. Reduced costs of direct
mail/marketing. Companies can decrease the costs associated with
direct mail and marketing efforts by having more accurate data.
3. Reduced operating costs. Improved
customer data and the consolidation of that data into a single source can lead
to significant savings in operations costs for companies.
4. F aster and more accurate billing.
Operating a central resource to manage data quality rules,
taxonomy, and process enables organizations to keep customer information
accurate, consistent and up-to-date, helping to ensure that invoices and other
mailings get to customers in a timely manner. And, collections can be expedited
with more accuracy in customer information.
5. More effective cross-selling and
up-selling. With more accurate and reliable data on customer
preferences, interests, and demographics, enterprises can more effectively
cross-sell and up-sell their products and services to customers.
6. Better relationships with customers.
Organizations with more accurate and reliable information about
customers will have better relationships with those customers.
7. Improved customer service. Having
accurate and timely information on customer preferences and concerns is vital
to providing top-notch service.
8. Front-office improvements. Organizations
can unify the corporate Web site with back-office systems, ensuring consistent
data from all sources.
9. Improved regulatory/compliance
efforts. With greater assurances that customer data is
current and correct, companies are more likely to be compliant with government
regulations.
10. Bolster privacy efforts. An
effective data-quality and customer data management effort can help protect the
privacy and security of sensitive customer data.
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