A survey conducted by Oracle shows that only 11% of companies that collect data are able to use it effectively.
As the need for more personalized user experiences grows, companies believe that data collection can be extremely useful. However, Oracle's report shows that most companies struggle to collect user data or, better yet, fail to collect and process it appropriately.
The study surveyed 337 professionals across North America and Europe who are responsible for managing customer data. The professionals were primarily in the marketing and analytics sectors.
The study, which was conducted on a large scale, concluded that: “Only 11% of companies can effectively use the wide variety of data they receive from their customers to personalize the experience in products , provide consistent experiences across channels, and generally improve the quality of the customer experience and other business outcomes.”
However, despite the poor result, 69% believe it is important to create a unified customer data profile across channels, while 75% of marketing and advertising professionals believe the ability to “improve customer experience” is a critical or important goal. Nearly 64% of all professionals surveyed have attempted to create a Customer Data Profile (CDP) to better understand them.
This effort shows the desire of companies to exploit data more effectively to offer a better user experience.
The Oracle study also found that companies that were able to properly and centrally leverage user data were 2.5 times more likely to increase the length of time a user remained a customer, while also experiencing an increase in their revenue.
According to the study, the two main benefits of creating a CDP include:
- Increased operational efficiency (Advertising, Marketing and Sales)
- Increased channel effectiveness (Email, Mobile, Web and Social Media)
When it comes to the role of CDP in an organization’s success, nearly 71% of professionals agreed that a unified approach is particularly helpful. Nearly 69% revealed that their company’s investment in CDP will increase over the next two years.
Respondents also received a small reward as a thank you for their time. The study began in August 2019 and was completed in September of the same year.
