Data validation is an assessment of the quality of data throughout its lifecycle to ensure that it is accurate and valid for a particular application.
It measures the performance of the data and identifies problems that need to be resolved. Data auditing leads to better data quality and allows you to use better analytics to improve business efficiency.
Why do you need data auditing?
Data auditing is the foundation of all data-related activities. Organizations can understand where their data resides and gain insight into its quality, security, usage and effectiveness as a business and analytical resource.
Data audit has three main functions
1. Data quality Identifies incorrect data and its root causes – enabling organisations to put processes in place to address problems.
2. Regulatory compliance Helps organisations comply with corporate, industry and government regulations by providing insight into where data is stored, used and protected.
3. Streamline operations From sales and marketing to customer service and human resources, data controls improve data quality and make business operations more efficient and effective.
Here’s a simple five-step process for auditing business data.
- Find out what you have
- Know where you are
- Conduct interviews with key stakeholders
- Prioritize and organize
- Monitor data usage
Options for automating data audits
There are many software solutions available to help ensure that data is accurate, complete and consistent. Depending on your goals, you may need help creating automated workflows that allow you to review, flag, or share data in a standardized format.
Depending on your specific needs, data quality, data management or data integration software may be the ideal solution for your business. This article is part of a series on customer experience data and we will continue to discuss customer data platforms in the coming weeks. Stay tuned to learn how to find valuable contextual data and how to choose the right customer data platform for your personalization strategy.
Why are data audits so important?
Reduce errors According to Experian, human error and manual data entry are the leading causes of inaccurate data, resulting in businesses losing an average of 12% of their revenue. This is due to a lack of internal processes to check data accuracy at the point of data entry and data cleansing in the back office.
Compliance with the rules The new General Data Protection Regulation (GDPR) comes into force in May 2018 and will tighten data protection rules for EU businesses. However, Gartner estimates that over 50% of companies will not be fully compliant by the end of 2018. This could result in fines of up to €20 million or up to 4% of global turnover.
Improving customer service Have you ever been on the phone with a customer service representative and tried to figure out why the engineer isn’t answering the phone? Such mistakes can frustrate customers, lead to complaints and ultimately lead to low customer retention. Don’t be discouraged by data checks Data auditing prevents the consequences of poor data quality and security that can negatively impact all departments in your organization. It makes all information within the organization transparent.
During a data audit, data is regularly evaluated to identify errors and anomalies. A good audit can also identify data silos that need to be reorganized to ensure all organizations have access. .