All the data in the world means nothing if you don’t know what to do with it. This is a problem many companies are currently facing. While they’ve collected a lot of customer data over time, they’re not using it to its full potential, or they haven’t integrated the data well enough to get valuable, actionable insights. Ultimately this leads to data waste and other unwanted consequences such as inefficiency, lost productivity, missed revenue opportunities and wasted ad spend.
Companies who are struggling to make the most of their data won’t thrive in the current environment, where understanding customers is becoming increasingly vital. Consumer behaviors are changing, and rising inflation is causing them to think more carefully about their purchases. To get through to a more cautious customer, marketers must rethink how they use data to get better insights. Below, we outline the three major data challenges that must be addressed to improve efficiency — and how your organization can overcome these roadblocks.
Explore Your Data Blind Spots
Data blind spots encompass several different challenges. A data blind spot could be a brand not making an important connection between different data points or receiving inauthentic customer data that leads to inaccurate insights. According to a recent Treasure Data survey of 500 marketers and 2,000 consumers across the United States, even though almost all marketers (98%) recognize that high-quality data is important for marketing success, a majority (75%) say there are data blind spots within their organization that impact their marketing efforts.
Integrating data to uncover the deeper, hidden insights is not exactly simple. Organizational silos exist in most companies. There are many types of customer data that companies collect from different sources. This includes transactional data, behavioral data and demographic data, to name a few. Different data sets come from a variety of sources, systems and locations, so integrating them accurately takes a lot of effort. A technology solution that can take over some of these time-consuming tasks helps organizations simplify this vast amount of data, eliminate silos and create meaningful customer experiences.
The Impact of Poor Data Quality on Your Marketing Strategy
Inauthentic data is another huge blind spot. Customers are becoming more careful with their data, and many (41%) deliberately try to withhold their personal data from brands, according to the Treasure Data survey. It also found that many Americans (34%) avoid using their primary email address when signing up for brand emails.
These data points are just a few examples of how, when brands lose customer trust, the type of information that they receive becomes less reliable. Ultimately, the quality of data is more important than the quantity. This should be a wake-up call for companies to respect customers’ boundaries with personal data. Companies must earn the trust of customers so that when they do provide personal information, it’s honest and accurate. They can start by clearly communicating the value exchange at hand so that customers don’t feel blindsided. Instead, they’ll begin to understand how they’re getting a reasonable return for sharing their data.
The results of poor data quality include inaccurate targeting, lost customers, lost leads, wasted marketing spend and reduced productivity. This can impact the organization overall, beyond just the marketing department. For example, inaccurate targeting can lead to low open rates on emails and lower click rates on ads. Customers who no longer think you offer what they want may disengage from the brand over time. The potential loss of customers is certainly a company-wide concern.
Why Are You Leaving All That Good Data Out of the Game?
The survey also found that more than half (57%) of marketers don’t feel properly equipped to get the most out of the data they use for marketing. In a time where showing quantifiable results is so important, companies can’t afford to leave valuable data on the sidelines. Many marketing teams are facing potential budget cuts, and not being able to show ROI will only make that more likely.
By better integrating their data, organizations can get more effective results and less waste in their marketing strategies. This helps teams work with smaller budgets while also improving the customer experience. Strong data integration will help teams make the most out of each marketing dollar and create a stronger foundation for their data management practices.
Learn More About Improving Data Efficiency
Data is an invaluable currency to marketing teams that want to stay relevant to customers as their behaviors change and as economic trends shift. But with data blind spots hindering your vision and poor quality data creating false insights, you must take a careful look at where your data strategy needs improvement. Addressing these issues through a reliable data management solution will help teams use their budget more effectively. Other perks include your organization seeing the value of marketing strategies more clearly and customers having a more positive response to the marketing materials they receive.
Treasure Data not only provides data management services that help companies achieve these results, but it also provides fascinating insights and best practices in its recent white paper, “Better Decisions: A Spotlight on Data Efficiency.” Check out the link below for more information.
Download Treasure Data’s whitepaper, “Better Decisions: A Spotlight on Data Efficiency,” here.