Data today has become a universal currency for companies. In truth, data has always been highly prized, but the amount of data companies now have is dramatically increased. The digitisation of marketing and sales left no question as to the value of customer data, with campaigns more trackable than ever and data sitting squarely at the centre of digital strategy.
Just like any other asset it must be measured and checked to determine its valuation.
It's the job of a CIO to be a custodian for their data. As times have changed and the role data plays within the corporate world has evolved, so too must the appraisal processes.
A proactive approach is needed in today’s market, knowing exactly what the limitations of your data sets are and pushing to get the very best out of them.
Why does data need a proactive appraisal?
There have been many documented cases of companies in administration selling off their data assets, often for a lot higher value than any physical inventory. During Caesar Entertainment Operating Corp’s bankruptcy, creditors profited from their Total Rewards customer loyalty database for over $1 billion—more than any other Caesars property.
Other companies have leveraged data from loyalty programmes to collateralize loans in times of uncertainty like COVID has produced.
With so many stories of a company’s data swooping in to save the day, the more pertinent question becomes, why would you wait until your company is in trouble to get your data appraised?
You can’t value what you don’t measure. Failure to quantify the actual and potential value of your company’s data can lead to gross mismanagement and missed opportunities for your business.
So, as you can see without proactive data appraisal you are crippling your chances to generate economic benefits from your data sets. Proactive appraisal is also vital for the record-keeping processes to prevent CIOs from getting complacent in what can be perceived as an endless appraisal of backlogged and legacy files.
CIOs should be looking forward, rather than reacting to the market to actively develop appraisal criteria that make sense for the time and context in which it’s being used. Data appraisal requires a more active approach that puts information management processes on the day-to-day task lists.
The requirements for regular data appraisal
To make proactive and regular appraisals possible CIOs would need to ensure that their data sets are accurate, otherwise the appraisals will be next to pointless. To achieve an accurate data set, regular and thorough cleansing of your data must be carried out.
This requires a dedicated team who understands how your data is used and stored. by knowing this they can go through and clean up your data sets in a way that offers you exactly what you want.
In most cases outsourcing your data cleansing is the simplest option, as it gives you access to a wider team possessing in-depth knowledge that will far surpass an in-house team. This also allows for flexibility within your projects as the outsourcing team will be able to cater to your ever-changing needs far more efficiently.
Data is a huge business asset and outsourcing the management to a team of specialists, gives data the focus it deserves. A clean and organised database is ready for proactive appraisal.
See what we helped media company Real Deals achieve with a clean and organised set of data containing over 1 million records in our data audit case study.
Take the first step towards valuable data
With our Data Capture app and Data services team on offer we provide all the tools necessary to unlock the value in your customer data