What are hidden costs of poor data quality?

Hidden costs of poor data quality significantly impact an organization beyond the immediate financial considerations. When data quality is compromised, it can lead to lost opportunities as decision-makers rely on faulty information to guide their strategies. This can result in misguided business decisions that may cost the organization potential revenue or market share. Additionally, poor data quality can damage an organization’s reputation; customers and partners may lose trust if they receive incorrect or inconsistent information. The long-term effects of these reputational damages often manifest in decreased customer loyalty and retention, ultimately affecting the bottom line. By recognizing lost opportunities and damage to reputation as a key consequence of poor data quality, organizations can better prioritize investments in data governance and quality management initiatives.