In the latest episode of Now That’s Significant, we sat down with Bob Fawson, founder and CEO of Data Quality Co-op, about transforming the data quality landscape in the consumer insights industry. Fawson’s mission? To rebuild trust between buyers, participants, and intermediaries in the evolving world of market research data.
Data quality challenges: a classic “lemon market”
Bob describes the current data market as a “lemon market,” borrowing from economist George Akerlof’s analogy about used cars. In this market, buyers struggle to distinguish between high-quality and low-quality data, often assuming average quality and driving prices—and trust—down. “We’ve been wringing our hands about commoditization for years,” Fawson explains. “The market needs structural changes to incentivize high-quality data and restore trust.”
To address this, the Data Quality Co-op is positioning itself as the industry’s first independent clearinghouse for first-party data, providing transparency and benchmarking to help buyers and sellers navigate the complexities of data quality.
Solving the data quality dilemma
The solution lies in open communication and collaboration, Fawson argues. Drawing on economic principles, he highlights how other industries—like credit reporting and digital advertising—have used independent bodies to establish quality benchmarks. “We need to create a system where the highest-quality data can be credibly differentiated and rewarded,” he says.
Fawson also emphasizes the importance of understanding participants’ motivations. “Survey participants are active actors—they respond to incentives,” he notes. By improving the “labor-like contracts” between researchers and participants, the industry can attract more diverse, high-quality respondents and grow the overall pool of participants.
Why now? Preparing for the AI era
With the rise of generative AI and the growing demand for high-quality training data, the timing is critical. “AI’s reliance on accurate inputs makes first-party data more valuable than ever,” Fawson explains. “As an industry, we need to position ourselves as the go-to source for reliable, consumer-direct signals.”
A call to action
Despite the challenges, Fawson remains optimistic. “If other industries can solve similar problems, we can too,” he says. By embracing transparency, collaboration, and innovative thinking, the market research industry has an opportunity to not only address current issues but also thrive in the AI-driven future.