The Cost of Bad Data

Cost of Bad Data

Cost of Bad DataBad data is data that is not perfect – it could be incorrect data, data with missing chunks or data that is delayed. Most businesses do not realize it yet, but bad data should be ranking as one of their biggest problems.

It costs ten times as much to complete a unit of simple work with bad data than with perfect data. All it takes is an error rate of just one percent to double the cost of operations. Gartner estimated way back in 2007 that one out of every two data warehouse projects would face either limited acceptance or outright failure because they do not address data quality issues in a proactive manner. Today, with the prominence of data, the rate would be much higher.

The cost of bad data happens both directly and indirectly.

Poor data hygiene, which manifests as duplicate entries, incomplete, erroneous, irrelevant or outdated information, directly leads to additional costs for the business. For instance, duplicate entries in a mailing list would shoot up the marketing budget considerably, often more than the investment required to clean up the data. Cleaning up the data involves additional work, with even a very low overall error rate of 3% adding almost 30% of non-value-added costs to the operating expenses. A case in point: a billing error takes considerable amount of work to rectify, and, at the end of the day, it adds no value to the process. Worse, underbilling due to bad data may result in direct loss of revenue, and overbilling may result in loss of credibility and trust.

The indirect cost of bad data, which manifests as loss of trust and lost opportunities, is huge and worse than the direct cost of bad data.

In today’s hyper-competitive world, marketers have no option but to engage with customers on a personal or customized basis. The success of these interactions depends on data accuracy, or the marketer's ability to decipher what the customer wants or prefers by analyzing the data on hand. Bad data could result in the marketer making a wrong move, approaching the customer in a channel different from what he prefers, reaching out to a prospect at an inappropriate time – leading to loss of reputation. Much worse is the loss of credibility that comes when the marketer says the wrong thing or fails to honor a commitment due to bad data.

Equally devastating is lost opportunities. Bad data may put blind spots in the path of the marketer as they seek out newer customers and engage with existing customers in a better way. Many companies today swear by big data and invest a considerable sum in big data analytics. The success of big data endeavors depends wholly on accurate data. Bad data can distort the results, not just rendering the investment pointless, but also having spill-over effects when the business makes wrong decisions and investments based on the flawed assumptions.

Some manifestations of flawed big data analytics include mailing to people who have no interest, clients remaining unaware of a new service that may interest them, wrong advice given by the customer support help desk, launch of a new product under the flawed assumption that there is demand, and much more. Lost productivity, lost revenue and lost clients would be the least of a company’s worries in that state of affairs. It could undermine the very existence of the business itself.

The impact of bad data amplifies ten-fold and manifests as the 1-10-100 rule: if the cost to fix a data error at the time of entry is $1, the cost to fix it an hour after it's been entered escalates to $10. Fix it later, and the cost becomes $100.

One way to improve data is through system integrations. ReadyTalk integrates directly with Eloqua, Marketo, Salesforce and other platforms to automatically move your webinar and conferencing data between platforms. By eliminating manual processes, the quality of the data is greatly improved. Learn more about ReadyTalk integrations.

 

Reference:

  1. http://blogs.hbr.org/2012/08/make-the-case-for-better-qua/
  2. http://www.melissadata.com/dqt/1-10-100-rule.pdf
  3. http://economia.icaew.com/opinion/july-2013/the-unseen-cost-of-bad-data
  4. http://www.ciozone.com/index.php/Editorial-Research/What-To-Do-About-Bad-Data/The-Cost-of-Bad-Data.html
  5. http://www.nten.org/articles/2013/the-cost-of-bad-data

 

 

Optimize Your Webinar Spending with the Webinar ROI Calculator

Optimize Your Webinar Spending with the Webinar ROI Calculator

webinar ROI calculatorAs a marketer, you’re probably asked to provide weekly results in order to justify your budget and efforts. Week over week, you’re continually trying to improve your efforts and you know you have to adjust quickly. In a multi-channel marketing world, that can be hard to do, especially with tactics that require more time and planning.

One tactic that requires more time and planning is webinars. While some may shy away from conducting them because it takes a lot of work to make them successful, they shouldn’t.  Why, you might ask? Webinars provide a higher quality lead than most other lead generation tactics because prospects:

  • Provide accurate data to gain access to the webinar,
  • Are willing to give up their time to join the webinar for an extended period of time, and
  • Want to hear what you have to say!

Furthermore, according to Ascend2, of the lead generation tactics available, webinars are the second most effective type of premium content for marketers.

But, how can you justify the expense and make it more cost effective, while still producing those high quality leads webinars provide?

A couple of weeks ago, we launched our Webinar ROI Calculator, which is designed to help you identify what your webinar program is costing you, and then offer some suggestions for better ROI. Using this calculator to analyze your current webinar plan will also help you have more meaningful conversations with your boss about why this tactic is worth it in the long-run.

Improve your marketing numbers while optimizing your webinar spend. Try our free Webinar ROI Calculator today.

 

ReadyTalk Makes Outside Magazine’s 2014 list for “Best Places to Work”

The 2014 Outside Magazine “Best Places to Work” winners have been released, and ReadyTalk is happy to announce that we have made this year's list. For the past seven years, Outside Magazine has put on this award to recognize companies that empower their employees and create work environments that encourage a positive work life balance.

ReadyTalk has consecutively made the list 3 years in a row. This year, ReadyTalk received 11th among the 100 companies that made the list. The list contains organizations across different industries, sizes, and locations.

Our company's vision has always been to create a work environment where employees enjoy coming to work at everyday. To be recognized in this category on a national scale, is truly humbling for our organization. 

Outside Magazine lists some of the benefits ReadyTalk offers to help employees maintain healthy work life environments including:

  • Gaming room with Nintendo Wii and Xbox 360
  • Smoothie machine
  • Healthy food
  • Beer (Two fully stocked kegs)
  • Nerf guns, Jenga, happy hours
  • $300 race entrance fee allowances, twice weekly in office yoga, and a $25 monthly health and wellness benefits.
  • 20 paid hours of volunteering each year and donation matching

Is this a work environment that you can see yourself working in? Learn more about ReadyTalk careers and openings here.

Don't forget to check out the complete list of Outside Magazine’s “Best Places to Work"  here.