by Rishik
19. November 2010 09:13
What is the difference between data and information? Information is what you base key decisions on which is reliant on data. Therefore, bad data = badly informed decision making.
Your data is the most valuable asset you have so it is important to look after it properly. By keeping hold of inaccurate, out of date data you may well be basing your key assumptions on wrong information. This will also cost you money. Let's take an example;
You have identified the top 2,000 spenders with your company and want to send out a promotional offer to them via post. Say each customer on average spends £100 with you; you've got a customer base with a potential spending power of £200,000.
We know on average approximately 10% of people will move each year. If the data is two years old, that's potentially up to 400 customers who won't receive your promotional mailing. If each of these customers is willing to spend £100.00, then there's up to £40,000 worth of potential business you've missed out on.
Compare this to spending less than £200.00 on goneaway screening and mover data and the return on investment is clear. By using bad data, you are losing revenue for your business. Cleanse your data regularly with a data cleansing strategy and you can not only save, but make your business money.