How Data Quality Affects Business Performance

Data plays a significant role in deciding the success of a company. Businesses that effectively manage their data assets, can gain stay ahead in their domain. In contrast, businesses with poor data management may confront reputational damage in the future. Want to know more about how data quality affects business performance? Here are a few points that will explain the same.

Wrong Decisions

Decisions always arise from the analysis of data. So what happens if the data that is available to you is of poor quality? It will affect your decisions and business performance, right?

Imagine a situation wherein you have to make a decision on whether you need to continue the sales of a cosmetic product in your shop. You are asked to make a decision based on the data given to you. Unfortunately, the data that was given to you contained errors regarding the figures of that sold cosmetic product. Even though the product has less sales in the past two months, that data showed it had great sales. Without knowing this, you come to a decision to continue that product in your shop. This is a clear situation that shows how data quality can contribute to wrong decisions.

Bad Service

If you are dealing with poor quality and running businesses based on the insights from it, it is more likely that you may offer poor service to your customers.

Imagine you are a person who runs an online clothing store. You maintained poor contact data records and following that, you made some faulty deliveries. And the result of such bad service is that your customers will lose trust in you and they will stop buying products and services from you. 

Slow Growth & Data Management

We are living in a fast-paced business world. So if you are not able to make your moves on par with the demands of your domain, you cannot maintain a competitive edge in the market.

To be in detail, if you are using the wrong techniques and tools, and maintaining a set of poor data, you will have to spend more time fixing those errors. So, if you want to respond to a demand in the market with the analysis of your data assets, with your poor quality you won’t be able to make it and you will miss quality opportunities.

Rise in Expenses

Poor data can lead to serious financial loss. Let’s see how it happens.

There are certain rules and standards that you need to follow while running a business. And if you fail to follow any of such regulations, it is almost certain that you may have to face fines or punishments for the same. For example, if you fail to pay the tax just by analyzing your poor tax records, you will have to pay hefty fines for it.

Likewise, if you want to fix the errors in your data that are already processed, you are actually making extra expenses indirectly. Extra expenses in the manner that, you are using your valuable business hours, and employing top-notch technologies to boost the quality of data.

Measures to Improve Data Quality

• Firstly, Conduct Frequent Data Audits

You may conduct regular audits to check whether there are any errors in the data asset you have created and you can fix them in real-time if you have found any.

• Secondly, Special Training for Your Team

Provide relevant training for your in-house team regarding how to maintain data accuracy. Also, make them aware of the latest trends in data entry.

• Thirdly, Use Top-Tier Tools

Top-tier data entry tools can fetch you good results always. So try to purchase and maintain such tools in your company.

• Fourthly, Standardize the Data Entry Process

Don’t forget to standardize the data entry process. Otherwise, people will follow different methods and this can create errors.

Final Thoughts

Today there are many companies that offer business process outsourcing services to clients in any industry verticals. If you are handing over your time-consuming back operations to any of them, you can concentrate on core tasks and work for the growth of your company.

India Data Entry Help is a frontline business process outsourcing company that offers quality BPO services at pocket-friendly rates. Want to keep your data clean and safe, contact us today via [email protected].