Data Is Widely Available, But Firms Lack Confidence In Their Ability To Use It: Study

Brands have more data available and are using more of it, despite doubts about their effectiveness, according to the 2022 State of Customer Data, a paper by customer data platform Simon Data. 

In 2020, Simon’s clients were using six fields of information per campaign. Now they are leveraging eleven in their first- and zero-party data use, the study says.  

But many firms lack confidence in their data capabilities. A graph created for Simon by Forrester showed that firms rated themselves as advanced or extremely advanced in these categories:

  • Targeting — 86%
  • Initiating campaigns — 85% 
  • Analytics — 82%
  • Optimizing experience — 80% 
  • Measurement — 79% 
  • Conducting analysis/measurement of results — 79%
  • Creating content — 78%
  • Personalization — 78% 
  • Completing customer profiles — 74%
  • Experimentation — 72% 

The listing looks less impressive when limited to those who say they are extremely advanced: 

  • Targeting — 38% 
  • Initiating campaigns — 37% 
  • Analytics — 37% 
  • Optimizing experience — 39% 
  • Measurement — 38%
  • Conducting analysis/measurement of results — 37% 
  • Creating content — 35% 
  • Personalization — 35%
  • Completing customer profiles — 40% 
  • Experimentation — 31%

The study observes: “Given only two options, most respondents did not feel highly confident in their abilities.”

Simon Data has identified five emerging customer data trends. They are:

  • Greater Privacy Concerns —  Consumers know that data is being collected and used without their permission. And they don’t like it. 
  • More Data Available —  Marketers have seen an increase in the amount of data available to them. 
  • Lack of Confidence in Usage — Brands are unsure of how to use data effectively, despite the large amount available to them. 
  • Heightened Customer Expectations — Customers demand an elevated customer experience based on the information brands have on them.
  • Value Exchange — Companies have to hold up their end of the deal in providing a valuable customer experience after they ask for valuable data.

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