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.