Lack of Confidence in Data Governance Leads to Distrust in Data Insights

March 27, 2020

This article is included in these additional categories: Analytics, Automated & MarTech | Business of Marketing | Customer-Centric | Data-driven | Staffing

Experian Key Reasons for Data Quality Strategy Mar2020A full 85% of organizations consider data to be one of their most valuable assets, according to a survey of respondents with visibility into their organizations’ customer or prospect data management practices. However, a struggle to thoroughly leverage data is leaving this asset somewhat untapped for many companies, per a report [download page] from Experian.

More than one-quarter (28%) of current customer or prospect data is suspected to be inaccurate in some way, according to the study. With this in mind, the report details how businesses can benefit from having a strategy dedicated to maintaining high-quality trusted data.

Six in 10 of the 1,100 respondents – representing 6 global markets – believe that high-quality data increases efficiency in their business, with a sizable percentage believing that it not only increases customer trust (44%) and enhances customer satisfaction (43%) but also enables more informed decision making (42%) and cuts costs (41%).

One key finding is the extent to which data debt – which Experian defines as the “accumulated cost associated with the sub-optimal governance of data assets in an enterprise” – can lead to a lack of confidence in data initiatives despite significant investment and the best intentions. More than three-quarters (78%) of organizations consider data debt to be a problem in their business, with 40% saying that individuals within the business do not trust data insights.

Indeed, mistrust and misunderstanding of data initiatives can be both a cause and an effect of data debt. With 35% of respondents claiming that they are unable to see the ROI of data management, it’s not surprising that two-thirds (66%) say a backlog of data debt is an obstacle to investment in new initiatives. And while 64% plan to address the problem, another three-fifths (59%) claim it is difficult to know where to start tackling data debt.

To get to the root of this problem companies must recognize data literacy in their hiring process, enacting a positive cycle that will, in turn, encourage professionals to build data literacy into their skillset. Seven in 10 respondents say that a lack of data literacy is negatively impacting the value of the investment in data and technology. Seemingly in response, 8 in 10 see data literacy as a core competency necessary for all employees in the next five years.

However, while 84% of organizations are concerned with hiring skilled professionals to strengthen their data management, such as analysts, data engineers and data scientists, the same share (87%) see at least one of these roles as being challenging to hire for, a problem that continues to be the thorn in the side of businesses.

Read the full report here.

About the Data: Findings are based on a survey of 1,100 professionals in the US, UK, Germany, France, Brazil and Australia.

Explore More Articles.

Marketing Charts Logo

Stay on the cutting edge of marketing.

Sign up for our free newsletter.

You have Successfully Subscribed!

Pin It on Pinterest

Share This