Data Quality Makes the Best Neighbor

So this week’s #dataqualityblunder is brought to you by the insurance industry and demonstrates that data quality issues can manifest themselves in a variety of ways and have unexpected impacts on the business entity.

Case in point – State Farm. Big company. Tons of agents. Working hard at a new, bold advertising campaign. It’s kind of common knowledge that they have regional agents (you see the billboards throughout the NY Tri-State area) and it’s common to get repeated promotional materials from your regional agent.

But, what happens when agents start competing for the same territory? That appears to be the situation for a recent set of mailings I received. On the same day, I got the same letter from two different agents in neighboring regions.

Same offer. Same address. So, who do I call? And how long will it take for me to get annoyed by getting two sets of the same marketing material? Although it may be obvious, there are a few impacts from this kind of blunder:

  • First of all – wasted dollars. Not sure who foots the bills here – State Farm or the agents themselves, but either way, someone is spending more money than they need to.
  • Brand equity suffers. When one local agent promotes themselves to me, I get a warm fuzzy feeling that he is somehow reaching out to his ‘neighbor’. He lives in this community and will understand my concerns and needs. This is his livelihood and it matters to him. But, when I get the same exact mailing from two agents in different offices, I realize there is a machine behind this initiative. Warm feelings gone and the brand State Farm has worked so hard to develop, loses its luster.
  • Painful inefficiency.  I am just one person that got stuck on two mailing lists. How many more are there? And how much more successful would each agent be if they focused their time, money and energy on a unique territory, instead of overlapping ones.

There are lots of lessons in this one and there are a variety of possible reasons for this kind of blunder.  A quick call to one of the agents and I learned that most of the lists come from the parent organization but some agents do supplement with additional lists but they assured me, this kind of overlap was not expected or planned. That means there is a step (or tool) in the process that is missing. It could require a change in business rules for agent marketing. It’s possible they have the rules in place but requires greater enforcement. It could just be a matter of implementing the right deduplication tools across their multiple data sources. There are plenty of ways to insure against this kind of #dataqualityblunder once the issue is highlighted and data quality becomes a priority.