A new study conducted by Oracle, the software company based in Redwood Shores, CA, across Europe and North America proves that only 11% of brands are able to utilize customer data effectively.
As demand for a more personalized experience grows in the consumer market, fruitful use of the trove of data collected from customers could prove to be a boon to any organization. However, a recent report from Oracle suggests that a majority of companies struggle in centralizing users’ data or in simple words, they fail in collecting it in one place and making any sense of it.
The study surveyed 337 professionals across North America and Europe responsible for handling customer data. The professionals belonged majorly to marketing and analytics-based job backgrounds.
Customer Data Being Wasted Is A Wasted Opportunity
The study conducted across two continents concluded that:
“Only 11% of brands can effectively use a wide variety of data types in a unified customer profile to personalize experiences, provide a consistent experience across channels, and generally improve customer lifetime value and other business outcomes.”
Despite this outcome, 69% believe that it is important to create a unified customer data profile across different channels. While 75% of marketing and advertising professionals believe the ability to “improve the experience of our customers” is a critical or important objective. Almost 64% of all the professionals surveyed in the study attempted to create a Customer Data Profile (CDP) in order to understand them better.
This clearly shows a need for the industry to easily profile the customer in order to serve a more personalized experience.
The Oracle study also found that brands that successfully implemented CDP were 2.5 times more likely to increase customer lifetime value. Such brands tend to experience revenue growth and increase profitability as well.
According to the study, the two major advantages of making a CDP include:
- Increased specific functional effectiveness (Advertising, Marketing, and Sales)
- Increased channel effectiveness (Email, Mobile, Web, And Social Media)
When asked about the critical role of the CDP in the success of an organization almost 71% of total professionals agreed that a unified approach is critical. Almost 69% revealed that CDP investments will increase in their company over the next two years.
“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 Rob Tarkoff, executive vice president and general manager, Oracle CX.
Respondents were offered a small incentive as a thank you for the time spent in the survey. The study began in August 2019 and was completed in September 2019.