09/12/2005

When it comes to maintaining data accuracy, organizations across the globe are struggling, according to findings from global data quality research commissioned by QAS, an Experian company. Only 14% of public and private sector organizations worldwide have completely accurate data and 73% recognize that the data inaccuracy affects their bottom line.

Data accuracy - the global picture

The research, conducted by independent research organization Dynamic Markets, shows that fewer than two in ten U.S. organizations claim that their data is 100% accurate, and 77% admit this problem is costing them money (Table 1 below). Irrespective of geography, all the respondents face the same challenges when trying to maintain accurate information on their customers. Organizations in the ten countries surveyed cite three obstacles to improving data quality:

• A lack of time and internal resources
• The limited ability to keep track of a transient customer base
• A lack of budget

Table 1: Customer data accuracy

Data Quality in the U.S.: A Snapshot

One striking difference between U.S. business and the rest of the world is in how many staffers in an organization take data quality seriously. Only 47% of employees here view data accuracy as an important issue, compared to, for example, 58% in the U.K. and 76% in Singapore. This may be due to a more centralized approach to data quality responsibility in the U.S., which would make data quality an issue for fewer employees here.

Key Drivers

The research has shown that in the U.S. there are three key drivers for clean data:

1. Enhancing customer satisfaction (63%)
2. Providing better service for customers or prospects (55%)
3. Protection of the organization's reputation and brand value (54%)

89% of U.S. organizations agree that compliance with government regulations around data quality, such as the Health Insurance Portability and Accountability Act (HIPAA), is vital when managing customer data, yet only 29% claim to be fully compliant.

Jonathan Hulford-Funnell, Chief Operating Officer of QAS, comments, "The good news is that, although research by The Data Warehousing Institute shows that inaccurate customer data costs U.S. businesses $611 billion per year, nearly all U.S. organizations surveyed recognize they have data quality issues, and just over half plan to invest in better data management practices over the next 12 months. With around a third of companies saying that they have an organization-wide strategy in place, it is good to see that U.S. businesses recognize that they simply must use data quality to their advantage in planning for the future in the global marketplace."

"Organizations across the world need to ensure that the process for managing data becomes embedded within the organization as a whole," Hulford-Funnell added. "More time needs to be dedicated to data accuracy, which means getting information correct from the start and keeping it right over time."

Full details of the QAS research report can be found at: www.qas.com/report

About the research

The research was conducted in June 2005 to establish the levels of accurate customer data held within organizations and how important this data is perceived to be. Dynamic Markets was commissioned by QAS to speak to 550 respondents in large public and private organizations across 10 countries around the world.

Countries represented by the sample include Australia, Belgium, France, Germany, Luxembourg, The Netherlands, Singapore, Spain, U.K. and US. Sectors represented by the sample include banking, insurance, finance, retail, telecoms, utilities, leisure, tourism, travel and the public sector.

Key findings:

• 97% of large organizations around the world say they are driven to keep their customer, citizen or prospect database clean and up to date.
• 99% of respondents rate compliance with regulations pertaining to customer or prospect data as important, yet compliance is a key driver for only 35% of organizations.
• Despite organizations' desire for clean and up-to-date databases, only 14% claim to have customer and prospect databases which are 100% accurate, meaning 86% admit that their databases are inaccurate or incomplete.
• The main barriers to maintaining accurate databases include lack of time and internal resources (65%), keeping track of a transient customer or prospect base (55%) and budget (49%)