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Why Software Projects Fail Because of Data Quality?

Why Software Projects Fail Because of Data Quality?
Author
@Viktoria Lozova
Published
August 25, 2025
Topics
Diagnostics

What Actually Happened Last Week

A SaaS company came to us about their billing system. Customers were avoiding it, support was overwhelmed, and users kept saying "billing is too complicated."

They gave us what they thought was everything we needed:

  • Demo account with 8 clean billing scenarios
  • Documentation explaining each feature
  • List of complaints: "billing is confusing"

But here's the thing - this data doesn't actually help us fix anything.

Their demo account had 8 billing scenarios. Clean data, obvious workflows, everything working fine.

Customer reality? 47 different billing configurations customers actually use. Legacy data everywhere. Edge cases making up 60% of actual usage patterns.

What We Can Do With Demo Data

With demo data, we can improve interface aesthetics and pass usability tests. But if your goal is reducing churn from customers who abandon functional software, that won't work.

Is this good? Yes.

Is this improvement? Yes.

Is it worth working on? Depends.

Here's why understanding real customer workflows matters.

We designed a complex request management form - 30 information inputs that account managers fill during client calls.

Every UX expert says 30 questions creates cognitive overload. You need progressive disclosure, wizard steps, or sectioned forms to reduce information density.

Makes sense? Absolutely.

Do we need user data to do it? Honestly, no. I can classify data logically and organize it into steps using a beautifully designed wizard.

Reality? Managers don't fill this form from A to Z. They speak with real people during live calls. Themes jump around, so managers jump from one part of the form to another.

The beautiful wizard would force them to remember section locations, navigate between steps, or deal with complex auto-save logic.

We tested both: flat list of questions versus divided steps. For all real users, the flat list performed better.

Result? Customer adoption increased 60% and support calls dropped 40%. Because we understood how customers actually work, not just interface best practices.

Why Companies Resist Sharing Real Customer Data

After dozens of projects, I see the same pattern:

  • "Just improve the interface - why do you need customer data?"
  • They think better design automatically reduces churn.Reality? Customers abandon software when they can't perceive value in their daily workflows.
  • "Our customer data is messy and confidential"
  • But messy reality shows exactly where customer value perception breaks down. Clean demo data hides the friction points causing churn.
  • "Support tickets are just noise from difficult customers"
  • Those complaints reveal precisely where working software fails to deliver perceived value to paying customers.

What We Actually Need

Software that doesn't deliver business results usually has two problems:

1. Does it solve the right problem for the right people?

2. If yes, can these people perceive the value of this software?

To answer these questions, we need:

  • How customers think about the problems they're solving (affects feature prioritization and navigation)
  • What obstacles slow down their actual work (affects interaction design and workflow organization)
  • What context customers work in (time pressure, dependencies, interruptions) (affects error recovery and information architecture)

The ROI of Understanding

"Why spend 2-3 weeks analyzing customer behavior instead of just improving the interface?"

Here's the business case for SaaS retention:

A. Understanding real customer workflows first:

  • 2-3 weeks gathering customer behavioral data
  • 6-8 weeks building improvements targeting actual churn reasons
  • Result: 60-80% reduction in monthly churn rates

B. Skip to interface improvements:

  • 6-8 weeks building improvements based on assumptions
  • 2-4 weeks of iterations when churn rates don't improve
  • Result: 10-20% churn improvement (interface satisfaction, not retention)

Time investment is nearly identical. Revenue impact difference is massive. For a SaaS with $2M ARR and 5% monthly churn, reducing churn to 2% adds $720K annually.

Before Your Next Product Redesign

If customers love your demos but abandon daily usage, constantly need support, or churn after initial adoption, the problem isn't interface aesthetics.

Ask yourself:

1. Can you show exactly where customers abandon key workflows, with specific behavioral evidence?

2. What workarounds have customers created to bypass your intended workflows?

3. How different are your customers' actual work environments from your demo scenarios?

If you can't answer these, you're not ready for effective churn reduction. You're ready to understand how customers actually use your product.

The Choice

You can hire agencies who'll work with demo data and improve interface aesthetics to boost satisfaction scores.

Or partner with consultants who require understanding real customer workflows first and fix why customers abandon working software.

One approach makes interfaces prettier. The other reduces churn and increases revenue.

*Want to discuss why customers abandon your technically working software? Most SaaS retention projects need 2-3 weeks to understand real customer workflow patterns before effective improvements are possible.*