Data helps you assess your market position, identify risks and growth opportunities, identify trends and dynamics, develop effective strategies, and ultimately drive business growth.
Quality data is crucial, especially when it comes to market intelligence. Data-driven companies need to trust their data, but only 55% of business leaders do.
Bad data leads to bad decisions, unhappy customers, high costs, and inaccurate targeting. Even technologies like AI and ML require accurate data to work properly.
Accurate data requires intelligent gathering, filtering, cleansing, validating, enriching and formatting to be useful.
Why Data Quality Is Important for Market Intelligence
Effective market intelligence requires high-quality data. Here are six major reasons.
- Better Targeting
- Building of Effective Campaigns
- Personalization of Messages
- Better Customer Relationships
- Competitive Advantage
- Creation of Trustworthy Insights
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Better Targeting
A lack of data leads to a lack of connection with the target audience. Quality data helps you focus your resources on high-potential targets.
Broad targeting based on assumptions wastes time and money chasing uninterested customers. With better data, marketing efforts are more focused and effective.
Your company knows its target demographic and even finds similar targets. Defining your target demographics, preferences, and behavior is the first step in marketing.
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Building of Effective Campaigns
Once you know who to target, plan your campaigns accordingly. Quality audience data allows you to create targeted campaigns and content that appeals to your target. Knowing your target’s preferences, age group, income, and other relevant information will help you create effective campaigns.
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Personalization of Messages
Having access to high-quality demographic and preference data allows you to send targeted personalized messages to your target audience.
People expect personalized experiences and are dissatisfied when they don’t get them. According to an Epsilon survey, 80% of consumers prefer personalized experiences and 90% find personalization appealing.
The ability to send tailored and relevant content to your target audience improves communication.
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Better Customer Relationships
Personalizing messages helps, but knowing your target audience better allows you to anticipate their needs and plan products, services, and content specifically for them. That strengthens relationships with your target, ultimately boosting business growth.
However, data management is required in this situation. There should be no duplicates or blank fields. That person may become enraged and sever your relationship if they receive your message twice.
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Competitive Advantage
Bad data costs companies 15-30% of their annual revenue. That’s a big loss for the organization’s credibility. Ensuring high-quality data gives you a competitive advantage.
Moreover, gathering intelligence on your competitors reveals what they are offering or not. Find the differences and plan your business strategies accordingly. You can see opportunities before your competitors, act quickly, and gain an advantage.
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Creation of Trustworthy Insights
Quality data is essential for AI and ML. Poor data quality causes most data-intensive automated projects to fail. Organizations increasingly need ML to gain meaningful insights.
These new technologies are useless without high-quality data. To get accurate results, you need lots of data. A computer algorithm using bad data can produce disastrous results.