Data is the lifeblood of your company. It’s what you use to understand your customers and keep track of their preferences, it’s how you figure out where to put new stores or how to market new products. It’s what helps you understand your cash flow and your profit margins. Data is what helps you understand your employees so you can make sure they’re happy in their jobs, too. But if that data isn’t accurate? Well then it could cost your business millions, and that’s just the beginning.
The Cost of Bad Data is High
The cost of bad data is high. It can mean losing customers, losing employees, making tax errors, and so much more. Losing customers can happen due to failure to deliver on promises or simply because you’re not seen as a trustworthy business. You can lose revenue by not being able to close deals with new clients. Additionally, losing time, resources, and money in the process of trying to discover where errors lie within a system that relies on accurate data input. This is particularly true when you have an automated system in place that requires regular upkeep and maintenance. Data accuracy is critical.
Incorrectly Interpreting Data
When you’re working with data, it’s important to understand how the data was collected so you can interpret it accurately. You need to know the fields that were included and the ones that were not. This can help you gather information for marketing, sales, and other facets of your business. Interpreting data accurately can ensure that you make the right decisions that don’t end up costing you more time, money, or human resources.
Data Entry Errors
Data entry errors are a common problem and can be caused by human error or poorly designed software. If your data entry tool is not designed to check for accuracy, you may find yourself with inaccurate data that costs your business money.
Here are some ways that data entry errors can cost you millions of dollars:
An employee enters incorrect information into a database. This leads to a problem in the system that costs millions to fix and lost time and revenue for the company.
A customer service agent doesn’t get the right phone number when they enter it into a system. This leads to not being able to reach out to a customer with important information and they cancel their big contract.
A business owner uses spreadsheets instead of databases and makes mistakes while editing them. There is no way to check the data to ensure that what’s transferred from one database makes it to another.
Outdated Technology or Too Many Users on a System
First, you need to make sure that the data is accurate. Data accuracy is critical for business success. If your data is inaccurate and you are making decisions based on it, then you can end up with poor results in terms of sales and financial performance. If your computer systems are outdated then they may not be able to handle all of the information required by your business’s needs. This means that there won’t be enough storage space on them, which also means no room left over for new information. It can lead to employees getting kicked out of a system that’s overwhelmed or data getting deleted to make room for new information. All of these issues over time can cost the company a cumulative amount of money in lost productivity, lost customers, and even a broken system. It’s best to use modern systems to ensure you get all the updates needed and that you have adequate space for your data.
Poor Information Architecture Within Your Database
Data architecture is the foundation of a strong data management strategy. It helps you discover the best ways to organize the data so that it can be easily accessed, analyzed, and used when needed. If you don’t have an effective way of organizing your data, it will be difficult for users to find what they need when they need it.
Poorly designed databases result in poor user experiences with slower-than-expected response times or error messages when trying to retrieve information from these databases. In addition, these poorly designed databases may also result in higher costs due to excess time spent on maintenance activities and troubleshooting.
Legacy Systems That Don’t Connect Well to New Software or Systems
Another way to lose data accuracy and ultimately lose millions is to try and connect new software to your legacy systems. You could easily spend millions trying to fix a problem that could be rectified instead with better overall modern software solutions instead of legacy ones.