The quality of a company’s data will have a direct impact on the performance of its people, process and technology. Maintaining the quality, timeliness, and completeness of a company’s data will often require working with external data suppliers.
The decision to buy data should only happen after a data assessment, gap analysis and cost benefit analysis have been completed…
The Data Assessment – is an iterative process that aligns to company’s data strategy and go to market plan, and involves:
- Identifying all data sources
- Reviewing the data collection procedures
- Interviewing those responsible for data and analysis
- Analyzing sample data for quality
- Setting segmentation based on personas
- Documenting business process
Data assessments provide qualitative and quantitative insights into data’s…
- Reliability – Data provides stable and consistent collection processes and analysis
- Validity – Data should clearly and adequately represent the intended result.
- Timeliness – Data should be available at a useful frequency, should be current, and should be
timely enough to influence management decision making.
- Precision – Data have a sufficient level of detail to permit management decision making.
Gap Analysis – A gap analysis will identify missing, incomplete or inaccurate data through the data assessment process. Below are examples where data may need to be acquired:
- Information missing pertains to specific individuals (i.e. email addresses, phone numbers,etc.)
- Behavioral information like purchasing patterns, memberships and affiliations, technologies used, etc.
- Credit score and risk rating
- Online search history unavailable (cookies, device information, etc.)
Cost Benefit Analysis – Justifies the decision to buy data using the findings from the gap analysis and data assessment. It is a comparison of the costs of all options against their total anticipated benefits.
When to buy data | Cleanse, Enrich, Acquire?
Quality data continues to be a challenge for companies today, and buying data does not guarantee its quality. When using purchasing data from a new supplier start small, inspect the data, and test performance.
Work with major data vendors that are known suppliers of quality consumer and business information. Major suppliers like D&B, InfoGroup, Experian, Equifax, TransUnion, Acxiom, and TeraData are able to provide consumer or business level intelligence that includes their interests, spending patterns, financial information, demographics, firmographic information, and so on.