1-10-100

The 1-10-100 rule, developed by G. Loabovitz and Y. Chang, is a quality management concept that illustrates the costs associated with missing or incorrect data.

The principle is straightforward: prevention is better than remediation. Spending $1 to sort address data before it enters the system is a wise investment. Correcting data midway through the process can cost 10 times more, due to manual processing required to sort and correct the data. The 100 times factor comes into play when a delivery fails, leading to redelivery costs, customer service interactions, and negative impacts on brand reputation and future sales.