A recent survey from leading data and analytics firm, Dun & Bradstreet, shows that one in five businesses loses customers and revenue due to inaccurate or incomplete data about its customers.
The survey included 510 businesses from multiple industries in the U.S. and the U.K. and discovered that each country has different business priorities. Compliance is a larger concern in the U.K. than it is in the U.S. Thirty-one percent of business makers in the U.K. consider it a higher priority compared to 16 percent in the U.S.
Overall, 22 percent of business makers say their financial predictions prove to be inaccurate. Seventeen percent of those surveyed said they’d extended too much credit to its consumers, primarily because they didn’t have complete information about their financial profile. In those cases, it often resulted in a loss of revenue.
The Chief Data Officer of Dun & Bradstreet, Monica Richter, said: “Businesses must make governance and stewardship a priority. Whether leaders are exploring AI or predictive analytics, clean, defined data is key to the success of any program and essential for mitigating risk and growing the business.”
The findings of the survey also highlighted that 65 percent of respondents acknowledge that data is vital for the future success of their company. But, only 22 percent of the enterprises have a dedicated staff focused on data. Likewise, a similar percentage believes it has the right staff on hand to affect change in its data management.
Many organizations seem to have issues with the way data is structured. Most companies seem to have data that are difficult to access and often irrelevant as far as timeliness is concerned. Forty-six percent say they can’t even decipher the data they have. Worst yet, 41 percent of business leaders surveyed say that there seems to be no clear management in charge of the organization’s data. Fifty-two percent don’t believe they have the resources to hire a dedicated data management team.
Dun & Bradstreet’s chief data scientist Anthony Scriffignano said, “Information has always been critical for businesses, but over the past decade, the volume of data, the types of information available and the ability to do new things with that data have expanded enormously. It’s not surprising that many business leaders feel they are still catching up and their organizations are yet to make the most of data – and some have even been fined or lost customers due to incomplete or ‘dirty’ data.”