However, let's do a quick thought experiment: What is the cost of a lost customer? There are direct costs, such...
as the loss of an immediate revenue stream (i.e., subscription payments) or the loss of future revenue from product upgrades, purchases of accessories, service contracts, etc. In addition, there are indirect costs, such as the loss of purchasing influence, word-of-mouth advertising or even communications via social networks advocating on behalf of the product or service. Clearly, there are computable costs for customer attrition; in turn, the next question is what percentage of customer attrition can be attributed to unclean data? That provides a baseline framework for addressing the cost issue, at least for one impact vector.
Related Q&A from David Loshin
Learn how to get senior management to buy into data governance. Get tips on selling data governance policies and processes to executives who can ...continue reading
Learn how often companies should update their data quality strategy. See how changes in data quality problems create new challenges and how revising ...continue reading
Learn about emerging data governance trends for 2011, including more use of data governance tools and data quality metrics and scorecards. Find out ...continue reading
Have a question for an expert?
Please add a title for your question
Get answers from a TechTarget expert on whatever's puzzling you.