The True Cost of Poor Data Quality
As a nonprofit organization, the ability to effectively manage your relationships with donors, supporters, and volunteers is critical to your success.
A key tool for managing these relationships is your donor relationship management software (CRM). However, the effectiveness of your system depends largely on the quality of the data it contains. Clean data is essential to the success of any CRM, and it can have a significant impact on your nonprofit’s ability to achieve its goals.
“Nonprofits waste an average of 14.5 hours per week dealing with data-related issues.”
Data errors can be costly for your nonprofit organization. According to Gartner, poor data quality costs organizations an average of USD $12.9 million each year. For nonprofits, this can mean lost revenue from donors who are incorrectly categorized or not contacted, as well as wasted time and resources spent trying to correct inaccurate data.
In fact, a recent report by Blackbaud found that on average, nonprofits lose 12.4% of their potential revenue due to poor data quality.
In addition to lost revenue, data errors can also lead to wasted productivity. According to the same Blackbaud report, nonprofits waste an average of 14.5 hours per week dealing with data-related issues. This can include tasks such as manual data entry, duplicate record clean-up, and troubleshooting technical issues.
To avoid these costly mistakes, it’s essential for nonprofit organizations to prioritize data hygiene and invest in regular data cleaning and maintenance. This includes verifying contact information, removing duplicate records, and standardizing data entry practices.
By prioritizing clean data, nonprofits can save time, money, and resources while improving their ability to effectively engage with donors and achieve their mission. So, take the time to ensure that your CRM system is filled with correct, up-to-date data, and your organization will reap the reward.
Avoid the costs of inaccurate data, reach out to Pink Purse and get a data health check-up with our Donor Prospect Accelerator service.