What is data quality and why is it important?

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Picture this: Your marketing team just launched what should be the most successful campaign of the year. The creative is pixel-perfect. The offer is irresistible. But 30% of your emails bounce because of incorrect addresses. Another 15% go to the wrong segments entirely. 

Meanwhile, your data science team has spent three months building an AI model that’s supposed to predict customer churn. When they deploy it, the results are all over the map; the training data was riddled with duplicates and missing values.

This isn’t a hypothetical story. Even today, more than half of data professionals admit they don’t trust their own data. With AI dramatically raising the stakes, that trust gap is becoming a chasm that separates companies that can accelerate their data initiatives from those that remain stuck in endless data clean-up.

The truth? Data quality isn’t a technical issue—it’s a business imperative that’s directly tied to your ability to compete. Every incorrect record, every duplicate entry, every inconsistent field is quietly eroding your revenue, inflating your costs and creative avoidable risks.

Why data quality matters more than ever

Driving revenue growth

Your marketing team can’t hit targets with inaccurate customer data. Your sales team can’t close deals when prospect information is wrong. And your executive team can’t make sound decisions with flawed analytics.

Example: A retail company sends personalized promotional emails to its customers. If the customer database contains duplicate or incorrect email addresses, engagement rates drop and the company loses potential sales. By ensuring accurate and complete customer data, businesses can improve targeting, increase conversion rates and boost revenue.

Controlling costs

Poor data quality leads to inefficiencies, unnecessary expenses, and wasted resources. Organizations spend millions cleaning and reconciling incorrect data, often leading to additional operational costs.

Example: A manufacturing company relies on supplier data to manage inventory. If the data is incorrect, it may over-order raw materials, leading to excess storage costs, or under-order, causing production delays. Ensuring data accuracy and consistency prevents such costly mistakes and optimizes resource allocation.

Mitigating risk and ensuring compliance

Today’s regulatory environment is complex and rapidly evolving. With AI amplifying both opportunities and risks, the stakes for data quality have never been higher.

Example: A financial institution must comply with Anti-Money Laundering (AML) regulations. If customer transaction data is incomplete or inconsistent, fraudulent activities may go undetected, exposing the company to fines and legal repercussions. High data integrity ensures compliance and protects against financial and reputational risks.

The six key dimensions of data quality

The most successful organizations measure and improve data quality across these six key dimensions:

  1. Completeness
  2. Accuracy
  3. Consistency
  4. Validity 
  5. Uniqueness
  6. Integrity

Data quality dimension scores

Completeness

Ensures that all required data attributes are present. Missing values can impact decision-making and analytics.

Example: A customer record missing a phone number may prevent effective follow-up for support or marketing.

Accuracy

Measures how well data reflects real-world entities and events. Inaccurate data can lead to incorrect analysis and poor business decisions.

Example: Incorrect financial transaction data could misrepresent a company’s revenue and lead to faulty financial reports.

Consistency

Ensures that data remains uniform across multiple systems and records. Inconsistent data can create confusion and errors.

Example: A CRM system lists a customer’s birthdate as June 1, while the billing system records it as May 1. This inconsistency can cause verification failures.

Validity

Ensures that data adheres to required formats, rules, or constraints. Invalid data can cause operational errors.

Example: A ZIP code field must contain only numeric values; if a non-numeric character appears, the data is invalid and cannot be processed correctly.

Uniqueness

Prevents duplicate records, ensuring a single version of truth. Duplicate data can inflate costs and distort analysis.

Example: A bank has multiple records for the same customer, leading to redundant marketing efforts and duplicate credit risk assessments.

Integrity

Ensures that data relationships remain intact and connected across systems. Broken relationships can lead to incomplete insights.

Example: A healthcare system records a patient’s treatment details separately from their primary medical record, making it difficult for doctors to get a complete history.

To learn more about the data quality dimensions see this blog.

Breaking through fragmented governance

When data is fragmented across multiple clouds, applications and on-prem systems, maintaining data quality is challenging. When visibility, access and policies are disjointed across your data ecosystem, quality suffers.

The solution isn’t more spreadsheets or manual processes. Today’s organizations need automated, unified governance for data and AI that works across every data source, system and user.

How Collibra Data Quality and Observability delivers data confidence 

Managing data quality with a continuous cycle

Accelerate discovery and profiling: Automate identification of data structure, content, class and sensitivity across sources.

Simplify rule creation and deployment: Utilize prebuilt adaptive rules, rule building interfaces for every user, and automated rule association with data sets and policies.

Automate monitoring and assessment: Detect hidden behaviors, patterns, shapes and outliers and determine the cause and impacts of anomalies.

Streamline notification and response: Proactively notify all stakeholders of data issues and prioritize response based on business impact. 

See it in action with our product tour.

Final thoughts

High-quality data isn’t’ a nice-to-have. It’s a strategic asset that drives better decision-making, improves operational efficiency and reduces business risk. By focusing on key dimensions of data quality and implementing unified governance across your entire data ecosystem, you can transform data from a liability into your most important asset.

The organizations that can unify governance across every data source, use case and user will know they’re using reliable, high-quality data. And that they can accelerate every data and AI use case. 

That’s Data Confidence®.

Is your business leveraging high-quality data for success? We can help you become a data quality expert. Check out our workbook

Related resources

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