Wondering why data cleansing outsourcing can be beneficial? Let’s take a look at what data cleansing does and benefits of outsourcing it.
Have you heard about United Airlines that makes 8 million price predictions for 4,500 flights per day to forecast demand with varying pricing combinations just by relying on bad/dirty data? If not, then know that the bad data that they use costs them $1 billion loss annually in revenue and misplaced assumptions about how much travelers would pay for a seat. If they used clean data, they could prevent this loss. That’s why it is important to have clean data in an organization. Clean data is reliable and enables the business to derive actionable insights which help in formulating excellent marketing campaigns and bring increased sales revenue. For clean data in an organization, you need to perform data cleansing, a process of identifying and correcting inaccurate, incomplete, and irrelevant data in a data set. If your database contains a large amount of data, you will have to work round the clock to validate the data which will surely take a lot of time and resources. In such situations, try data cleansing outsourcing with experienced companies that can identify and remove dirty data effectively.
Irrespective of the type of business, the quality of data is very important for the success of any business intelligence strategy. As we mentioned above, poor or bad quality data can prove costly for your business. For instance, check out the following statistics related to bad data:
- Organizations on an average lose $13.3 Million yearly on poor data (Gartner.com); and according to Blue Mail Media, around 3% of data gets decayed every month globally.
- Integrates states that 40% of all leads have inaccurate data.
- Sirius Decisions research has shown that it costs $10 to clean and dedupe a record in your database, but if you leave that bad data in your database it will cost you $100 per record.
- As a consequence of bad data, employees waste around 50% of their time dealing with mundane data quality issues (sloanreview.mit.edu)
- Companies having mail delivery issues lost 28 percent revenue and furthermore, 21 percent of businesses experienced reputation damages due to bad data (Econsultancy.com).
- Bad data affects overall labor productivity by about 20% and 20% – 30% of operational expenses are directly related to bad data.
As businesses these days highly rely on data to make big decisions, it puts them in a vulnerable position when bad data is used. So, to avoid such situations and make data relevant, cleanse it by identifying, correcting, and eliminating inaccuracies or corrupted data. According to CrowdFlower, data scientists spend 60 percent of their time cleaning and organizing data. Instead of concentrating on in-house data cleansing activities – which might face serious operational challenges related to identifying abnormality in data, cleaning large& complex data, funding for new tools / technology to do the process, hiring skilled data professionals and optimizing employee productivity –a better and more practical option is to rely on outsourcing companies for data cleansing.
Other key benefits of data cleansing outsourcing are:
- Improves the Business’ Scalability and Flexibility: When data cleansing services are outsourced to professionals, it gives your business the flexibility and scalability to stay close with market dynamics and fluctuations. It also enhances the productivity of your in-house data scientists by giving them more time to focus on their core jobs that helps to grow your business.
- Enhance the Accuracy of your Data: Cleansed data by skilled professionals helps you to focus more on your business, which will give results and better utilize resources to track quality leads.
According to Integrate’s recent survey, “from around 775,000 B2B leads, only 60% were excellent and a whopping 40% of the leads did not materialize because of invalid emails, missing/incorrect filed entries, or duplicate data”. However, several studies show that companies with high-quality data and best-in-class data management practices – which outsourcing experts are able to deliver – secure a whopping 152% increase in lead generation efficiency (blog.streamworksmn.com).
- It Makes You Competitive: With the help of professional data cleansing companies, your business can gain a competitive advantage to stay ahead of competitors who struggle to decide how their data cleansing teams operate to minimize bad data.
- The Outsourcing Service Provider Might Be More Experienced Than You: It’s a fact that companies offering data cleansing services are experts in it. They will be highly experienced in providing clean and accurate databases. Clean data provided by such experts will enable your business to perform better customer segmentation, help target your customers more efficiently, and strengthen your bottom line.
Many global organizations that have outsourced data cleansing have experienced good results such as reduced costs, more time to focus on core business functions, and other advantages. In a competitive world, where businesses have to constantly update their database to maintain integrity, validity and add value to their ongoing business process, having a clean, accurate and consistent database is crucial. But then, as we mentioned earlier, the process of data cleansing is a time- and labor-intensive task. So, consider outsourcing this task to a reliable and experienced data entry company. By doing so, you can not only save time and money but also optimize your skilled resources, and help your business improve its overall operational efficiency.