Significance of Data Audit
Data audit is the process of auditing the data to assess its quality for the professional use in and across the organization. The process also includes the assessment of the data quality and understanding its impact on the business. Data audit thus helps the company understand the risk factors and take appropriate measures to prevent the damage caused due to dirty data.
Research and observations have shown that several companies understand and plan to have a data audit in order to get the database streamlined but actually only 50% of such organizations carry out these practices. The remaining ones get the other tasks in priority while data management takes a back seat as usual. Though companies claim that they subject their data to audits and cleansing, which could be once or twice a year, there are many channels through which dirty data becomes a part of the system and this demands more attention into data management.
Dirty data has several adverse effects on the performance of the organization and more commonly it affects the data in a negative way. Poor quality of your data can result in loss of sales, increase the costs of marketing campaigns and yet deliver poor results. It can bring about failure in compliance and thus create a poor image of your brand. In the long term it affects the relationship with your existing and potential customers in an adverse way. A data audit can help you work on several factors that affect your performance adversely. The inaccuracy errors are corrected and duplicate data is removed from the database. When you conduct an audit of the data you come to know about the loopholes and if any important links and information is missing. This can be filled up. The existing and potential customer data can be reviewed during an audit. This includes marking the potential profiles, reviewing and updating the email address books and reorganizing the customer data.
You can also review your market position with respect to the database. Identifying and generating leads and nurturing the potential ones can be decided. You can tap the market opportunities that are prospective for your business. Inadequate and inappropriate data is immediately deleted and this saves the positive reputation of your brand that can possibly get damaged.
In this way, there are several other reasons that support the conduction of a data audit. It may seem that there are no issues related to data quality and there will always be numerous marketing and sales tasks that seem to be a priority. However, the data audits should never be ignored as the results help you in the long run.