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.
Dig Deeper on Data quality techniques and best practices
Related Q&A from David Loshin
Fact tables and dimension tables are used together in star schemas to support data analytics applications. But they play different roles and hold ... 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
Is it OK to implement data quality software but ignore your data governance policies? Learn more about the relationship between data quality software... 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.