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Media release: 97 per cent of Australian Businesses believe poor data quality impacts revenue and productivity

  • 02 July, 2008 11:04

<p>Report shows businesses need to address the cost incurred by inaccurate data</p>
<p>SYDNEY, Australia – 2 July 2008 – Experian QAS, the global leading contact data management specialist, has revealed that 97 per cent of Australian organisations believe inaccurate or incomplete data costs their organisation in terms of wasted revenue, resources and productivity.</p>
<p>The report Contact data: the profit maker or neglected asset?, commissioned by Experian’s specialist data integrity business, QAS, surveyed 2,078 respondents with a data-related role within companies. It showed that worldwide, 48 per cent of businesses do not know how much revenue and resources are wasted on inaccurate and incomplete data while in Australia, 39 per cent of businesses do not know what impact poor data management has.</p>
<p>“Australian businesses need to be aware of the financial implications incurred by not having accurate and up to date databases. A comprehensive approach is necessary to successfully improve data quality and minimise financial impact,” says Matt Glasner, General Manager, Experian QAS in Australia and New Zealand.</p>
<p>“At present, too many organisations are ignoring data quality, putting their reputation, revenue and public confidence at risk. Companies must directly relate it to their business goals for the impact of contact data quality management to be recognised.”
Business costs
Inaccurate databases can have far reaching legal and compliance implications; however businesses also need to be aware of the impact bad data can have directly and indirectly on revenue, resources, productivity and customer satisfaction.</p>
<p>Additional business costs from poor data management can include:
• Missed business opportunities
• Increased instance of returned mail
• Double postage costs
• Resource strain when administering erroneous deliveries
• Productivity of staff</p>
<p>Overall, Utilities and Telecommunications at 23 per cent had the highest percentage of lost revenue due to poor data management followed by Transport and Travel on 22 per cent. The Financial Services sector reported a 17 per cent average of lost revenue.</p>
<p>It is the belief of 98 per cent of respondents in large organisations that inaccurate data costs contribute to lost revenue, resources and productivity, compared to 93 per cent of respondents in SMEs.</p>
<p>Effective business planning
Customer and prospect data is used by companies to facilitate contact with its customers and potential customers, yet 40 per cent of Australian businesses do not validate any of the data they capture.</p>
<p>While data validation is not a high priority for businesses, the report showed that 85 per cent of Australian businesses use their customer and prospect databases in strategic planning and decision making. However, if their databases are inaccurate, businesses can not be assured of making effective decisions.</p>
<p>Almost one in four businesses worldwide use both existing and prospective customer databases to make strategic planning and decision making on a daily basis. In Australia, 51 per cent of businesses use their databases for the same purpose monthly or more frequently.</p>
<p>While businesses seemingly rely on their databases for decision making, in Australia, 90 per cent of businesses do not think they are using their databases to their full potential.</p>
<p>A full copy of the report can be found at:
http://www.qas.co.uk/company/research/contact-form.htm</p>
<p>- ends –</p>
<p>Notes to Editor: QAS commissioned Dynamic Markets to undertake a quantitative research study to investigate the attitudes towards the integrity of data held within organisations around the globe. 2,078 respondents in organisations across six countries (UK, The Netherlands, France, North America, Australia and Singapore) were questioned operating both in the B2B and B2C markets. The respondents included CEOs and managing directors, plus executives from IT, marketing, sales, human resources, finance, administration, and operations/production/logistics functions. The sectors represented by the sample include transport and travel; retail; financial services; utilities and telecoms; education; manufacturing; including construction, agriculture and mining; charities and membership; and other public sector and not-for-profit organisations. The comparative research from 2005 was also conducted by Dynamic Markets and followed a similar methodology. This research can be found at: http://www.qas.co.uk/company/research/contact-form.htm</p>
<p>About Experian
Experian® is a global leader in providing information, analytical and marketing services to organisations and consumers to help manage the risk and reward of commercial and financial decisions.</p>
<p>Combining its unique information tools and deep understanding of individuals, markets and economies, Experian partners with organisations around the world to establish and strengthen customer relationships and provide their businesses with competitive advantage.</p>
<p>For consumers, Experian delivers critical information that enables them to make financial and purchasing decisions with greater control and confidence. Clients include organisations from financial services, retail and catalogue, telecommunications, utilities, media, insurance, automotive, leisure, e-commerce, manufacturing, property and government sectors.</p>
<p>Experian Group Limited is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. It has corporate headquarters in Dublin, Ireland, and operational headquarters in Costa Mesa, California and Nottingham, UK. Experian employs approximately 15,500 people in 38 countries worldwide, supporting clients in over 65 countries around the world. Continuing sales for the year ended 31 March 2008 were $4,059m (£2,020m / €2,858m)</p>
<p>For more information, visit the Group’s website on www.experiangroup.com.</p>
<p>The word ‘Experian’ is a registered trademark in the EU and other countries and is owned by Experian Ltd. and/or its associated companies.</p>
<p>About Experian QAS
Experian QAS provides contact data management (CDM) software and services that help organisations drive value from their data. Every organisation stores contact information on its customers/citizens, prospects, suppliers and employees. Over 10,000 organisations worldwide choose QAS products and services to manage the quality and accuracy of this data to improve business processing, financial performance, efficiency and the customer experience. The CDM capabilities include data auditing and standardisation, validation and cleaning, matching, suppression and enhancement. Specialist Authentication solutions are also offered to meet the growing demand for electronic identity verification in the wake of rising ID-related crimes.</p>
<p>Award winning QAS solutions are a result of year-on-year investment in technology development since 1991, to ensure each solution delivers the highest level of functionality and service support.</p>
<p>QAS Ltd is a wholly owned subsidiary of Experian, the global information services company. Visit Experian QAS on the web at www.qas-experian.com.au</p>
<p>Press Contacts:</p>
<p>Angela Coombes
Max Australia
+61 2 9954 3492
angela.coombes@maxaustralia.com.au</p>

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