It's an age-old question: should you choose the high quality option that will have long-lasting value? Or should you go for the easy, quick fix? When it comes to choosing a data bureau, your decision can have huge consequences. We're giving you the inside scoop to help you weigh your options.
Dracore Tracing Services
If your business relies on tracing services and information from data bureaus, we believe it is vital that you invest in the best data available. Your business cannot afford anything less. To understand why, here is an overview of how good and "not-so-good" data bureaus and tracing service providers operate.
Firstly, all tracing services source data from external suppliers and then on-sell this information to clients. Good bureaus have contracts in place to receive data from a variety of sources. In South Africa there are key data suppliers who manage various kinds of data. For example:
- The Department of Rural and Land Reform manages deeds registration information.
- The Companies and Intellectual Property Commission manages business registration information.
- Tier 1 credit bureaus such as TransUnion manage credit information.
Secondly, good data bureaus will collect the data from each different supplier, cross check the infomation and then collate it into a single clean, usable and enriched format. This is what is given to the client.
This process requires time and resources which a good service provider will happily invest in.
Sadly, not all tracing service providers or data bureaus operate on this level. There are many ways to save money and cut corners or in the world of data supply. Bureaus may rely only on a single data supplier and fail to do cross checks to enrich and update the information they receive.
What they sell to clients is then a collection of information on consumers which has been gathered over many years, with multiple phone numbers and addresses and other outdated data. The client is then forced to do their own data cleaning, and find the relevant correct, information within the raw, unsorted data supplied to them.
These shortcuts taken by data bureaus could affect your business and your reputation. For example by having to phone multiple outdated phone numbers to trace a single contact, you can incur unnecessary costs. Another example is a loan which is paid out to an applicant who has passed away since making the application. With outdated information the financier has no idea that the person is deceased and stands to lose a great deal.
So how can you keep your business safe?
If a data bureau’s prices are very low you should be alert. Although the low rates might look attractive, it could mean that the bureau has cut a few corners to keep their own costs down. Before agreeing to use a cheap tracing service, ask yourself whether saving money on poor data makes sense in the long term. How much will it cost you in time and resources to sift through and test the information yourself?
You have to be sure that the data bureau you choose is obtaining its data legally, from a variety of sources on a regular basis. By asking the right questions you can assess the quality of the information and the service provider you are dealing with.
Ask them:
1. Who are your data suppliers?
2. Can you show me your contracts with your data suppliers?
3. Can you show me your last invoice showing your most recent update?
Remember, data is not free. It is only as new as the last invoice from a data supplier. If your bureau cannot show you a recent invoice, then its data is outdated.
We hope this information helps you make your decision!
At Dracore Data Sciences we focus on quality data extends to the way we conduct business. Transparency, compliance and good governance are cornerstones of our philosophy.