Experian QAS research shows a focus on data quality can liberate millions of pounds in lost budget and generate profit for UK companies. Findings from The data revolution identify that on average around £1 in every £6 of departmental budget is wasted by UK companies because of poor data quality.

Departments such as marketing, sales, operations and customer services report wasting 15 per cent of their budget on average — and in IT and data management this rises to 18 per cent (around one sixth).

More than 80 per cent of the companies surveyed operate customer loyalty programmes. Two thirds of these report that inaccurate data has had a negative impact on these programmes through, for example, lost custom.

Associated costs in terms of lost custom and deteriorating reputation are strongly felt, with 57 per cent of organisations reporting customer satisfaction and 41 per cent brand reputation as key motivating factors to improve data accuracy.

Companies that do invest in high quality data, however, can earn rich rewards. Of the companies surveyed in the Experian QAS survey, 55 per cent cited revenue generation as a driver for better data quality and other findings support the wisdom of this view.

Three quarters of UK companies have invested in upgrading data management systems in the past two years. On average across the whole survey, large companies invested more than £500,000, medium sized companies £248,441 and smaller companies £141,795. Average investment for all companies was £285,349.

Nine out of 10 companies that have invested have seen an associated increase in profits, with the average global figure coming in at £943,106 — representing a 300 per cent return on average investment. In the UK alone, the associated increase in profit was £792,980.

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