Neopost to become Quadient. Learn more

IOT and Data Quality - The Next Challenge in CX Excellence

Rob Daleman
Posted by Rob Daleman VP, Corporate Marketing Tuesday, October 10, 2017 - 21:33

Rob brings over 18 years of industry experience in technology marketing – both direct and channel, to his position at Quadient. Previously, Rob led Marketing at Avaya Canada, go to market for medium businesses at Dell Canada and brings marketing, finance, manufacturing and logistics experience from his time at Maple Leaf Foods. An avid composer and musician, Rob continues to combine digital and social media to drive awareness and consideration in the B2B marketplace. Rob holds an MBA from the Schulich School of Business.

Customer Experience Update
Data Quality and IOT

Over the past two weeks, we’ve looked at the importance of addressing weak links across your business to activate a better customer experience, along with some strategies to better prepare your business to compete via improved CX.  This week, we will dive into the growing importance of data in powering great customer experiences, and the critical role that data quality will play soon. One of the biggest factors impacting data growth is the pervasive use of mobile devices.  Since the launch of the iPhone ten years ago, the consumerization of IT resulted in a rapid adoption of mobile devices globally.  

In January 2017, Gartner estimated that sales of mobile devices would reach 1.893 billion units.  While this number is impressive, the market is showing signs maturity, and is poised to deliver little to no growth year over year.   What does continue to grow is the percentage of smart devices in the market place today.  In a recent whitepaper by Cisco, it was estimated that by the end of 2017, 54% of connected devices would be “smart” devices – a number expected to grow to 82% by 2021.

Interestingly, the growth in the number of smart devices is also having a material impact on IT infrastructure.  While the total number of mobile devices is not set to grow in the coming years – the increase in the number of smart devices allow for more interaction with customers.  In addition, the growth in mobile devices we have witnessed over the past decade will shift into exponential growth in Internet of Things / connected devices, which are set to drive more data by 2018 than all traditional and mobile computing combined.


The shift to smart and connected devices will, by 2025, cause the average consumer to have over 4,700 interactions per day with the organizations they are connected to.  As more data is collected on customers, the result is rapid growth of data storage in the enterprise.


How are companies feeling about the current state of data quality in their systems?  In their 2016 CEO outlook, KPMG found that 84% of CEOs were concerned about the quality of the data they were basing their decisions on.

Currently, it is estimated that up to 30% of data in the enterprise is of poor quality.  In fact – a significant portion of enterprise data degrades in under 3 months from initial data collection:

Being ready to collect data from 28 billion connected devices represents a massive challenge to organizations who have built up their infrastructure to cleanse, store and analyze traffic based on traditional human input.   Thomas H. Davenport, a Distinguished Professor at Babson College and MIT, wrote in a 2015 Wall Street Journal article:

With traditional data, we’ve become used to the idea that people are the main sources of data quality issues. But how important is it when devices themselves introduce significant errors in data quality?  The Internet of Things offers tremendous potential to measure things we’ve always measured more cheaply, to measure new things, and to connect those measurements and analyze them in powerful, new ways. It’s much easier to build quality in from the start.

Professor Davenport’s findings align with those of Sam Ransbotham of MIT, who found that on average, 40% organizations who are not active with IOT rated the timeliness of their data highly, versus 76% of respondents for organizations who are active with IOT. Both researchers agree that setting standards and ensuring that data is normalized between systems is key to ensuring data collected from IOT devices becomes valuable data.   A recent report presented by Forbes entitled “DATA ELEVATES THE CUSTOMER EXPERIENCE” echoes these findings. 

However, according to their research, only 1/3 of organizations currently have data integrated into real-time processes and systems, presenting a significant challenge to companies looking to leverage the coming tide of IoT driven data.

How will your company handle the rapid increase in data collection and potential data quality issues that will surface with the widespread adoption of IoT?  And how will you continue to deliver an exceptional customer experience that spans across your entire customer journey? For a deeper look at how the IoT is expected to impact the insurance industry, don’t forget to check out our recent webinar “Transforming Insurance in the Age of IoT” here.