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LogoutA VLOOKUP can lookup data automatically instead of a person having to do it manually, so time saving is the first benefit that springs to mind. How much time a VLOOKUP can save depends on the amount of time it takes a person to lookup the data manually, how many records are being looked up and whether the lookup function can be re-used to complete the same or similar tasks in the future.
By having the program (Excel) perform the Lookup, rather than a person, the change of an incorrect result due to human error is completely negated. So error reduction would be another benefit.