Report: Only 11 per cent of brands use customer data effectively

Brands are struggling to create a unified view of the customer

Despite all the hype around customer data platforms (CDPs), a new study has found brands are struggling to create a unified view of customers.

The study, conducted by Forrester Consulting and commissioned by Oracle, Getting Customer Data Management Right, found brands want to unify customer data, but face significant challenges in bringing different data types together.  

Forrester said unified customer profiles deliver on marketing priorities, and customer profiles support customer-focused operational priorities like improving the use of data and analytics, personalisation and content marketing, as well as customer-focused business priorities, helping to align brand promise with CX and developing new products and services. 

As marketers know, brands which leverage unified customer profiles effectively are more likely to experience revenue growth, increased profitability and higher customer lifetime values. The report states brands using CDPs effectively are 2.5 times more likely to increase customer lifetime value. 

It seems 75 per cent of marketing and advertising professionals believe the ability to improve the experience of customers is a critical or important objective when it comes to the use of customer engagement data. Around 69 per cent believe it is important to create a unified customer profile across channels and devices, and 64 per cent stated they adopted a CDP to develop a single source of truth so they could understand customers better. Plus, 69 per cent expect to increase CDP investments at their organisation over the next two years. 

Forrest reports leading firms are 3.3 times more likely than emerging firms to significantly increase martech budgets in the next 12 months and use their CDPs at higher rates across all marketing use cases, are 1.4 times more likely to recognise driving customer centricity as an important or critical priority in the next 12 months, 2.5 times more likely to prioritise seamless cross channel customer experiences, 1.3 times more likely to have realised the ability to scale consistent, relevant customer engagement and experience across touch points and channels, 7.9 times more likely to see a revenue increase of more than 10 per cent year to year, and 2.6 times more likely than emerging companies to see increased business results, such as profitability, as a result of their unified data management. Finally, they are 2.5 times more likely to enjoy benefits, like increased customer lifetime values. 

However, it seems only 11 per cent of brands can effectively use a wide variety of data types in a unified customer profile to personalise experiences, provide a consistent experience across channels, and generally improve customer lifetime value and other business outcomes. 

“A solid data foundation is the most fundamental ingredient to success in today’s experience economy, where consumers expect relevant, timely and consistent experiences,” said executive vice president and general manager, Oracle CX, Rob Tarkoff. 

The report recommends marketers help their firms achieve broader customer analytics maturity by working with their business technology counterparts on key competencies for rich customer insights, including: A strategy to position customer analytics for insights-driven decision making; structure the customer analytics team to either build skills in-house or develop successful external partnerships; focus on data quality, quantity and integration; use analytics tied to business and financial metrics; a process to generate, disseminate, and apply customer analytics insights; and technology to produce, distribute and activate analytics. 

Its final recommendation includes: Don’t conflate a strategy with a platform; collaborate across the business with leadership buy-in; pinpoint useful data sources and invest in identity resolution; enrich customer profiles with actionable intelligence; build trusted relationships based on value exchanges; and define and track customer-centric metrics. 

Forrester Consulting conducted an online survey of 337 professionals in North America and Europe who are responsible for customer data, marketing analytics, or marketing/advertising technology. Survey participants included decision makers director level and above in marketing or advertising roles. The study was completed in September 2019.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, follow our regular updates via CMO Australia's Linkedin company page, or join us on Facebook: https://www.facebook.com/CMOAustralia  

 

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

Building a human-curated brand

If the FANG (Facebook, Amazon, Netflix, Google) sector and their measured worth are the final argument for the successful 21st Century model, then they are beyond reproach. Fine-tuning masses of algorithms to reduce human touchpoints and deliver wild returns to investors—all with workforces infinitesimally small compared to the giants of the 20th Century—has been proven out.

Will Smith

Co-founder and head of new markets, The Plum Guide

Sustainability trends brands can expect in 2020

​Marketers have made strides this year in sustainability with the number of brands rallying behind the Not Business As Usual alliance for action against climate change being a sign of the times. While sustainability efforts have gained momentum this year, 2020 is shaping up to be the year brands are really held accountable for their work in this area.

Ben King

CSR manager & sustainability expert, Finder

The trouble with Scotty from Marketing

As a Marketer, the ‘Scotty from Marketing’ meme troubles me.

Natalie Robinson

Director of marketing and communications, Melbourne Polytechnic

It's a pretty interesting article to read. I will learn more about this company later.

Dan Bullock

40 staff and 1000 contracts affected as foodora closes its Australian operations

Read more

If you think it can benefit both consumer and seller then it would be great

Simon Bird

Why Ford is counting on the Internet of Things to drive customer engagement

Read more

It's a good idea. Customers really should control their data. Now I understand why it's important.

Elvin Huntsberry

Salesforce CMO: Modern marketers have an obligation to give customers control of their data

Read more

Instagram changes algorithms every time you get used to them. It really pisses me off. What else pisses me off? The fact that Instagram d...

Nickwood

Instagram loses the like in Australia; industry reacts positively

Read more

I tried www.analisa.io to see my Instagram Insight

Dina Rahmawati

7 marketing technology predictions for 2016

Read more

Latest Podcast

More podcasts

Sign in