With new channels such as mobile, marketers have been provided with much more data on customers and prospects – giving them a greater opportunity to deliver more personalised, engaging experiences that drive greater loyalty. However, a new study from Royal Mail Data Services (RMDS) has found that managing this data brings its own issues. Below are some of the challenges that marketers face in this golden age of data.
One of the biggest concerns marketers have had to deal with recently is the General Data Protection Regulation (GDPR).
The RMDS study was able to create a mixed picture of how ready marketers felt they were for the GDPR, with 78% of them claiming they were “very” or “reasonably” confident when it came to their internally-held data complying with new regulations.
Despite this, the levels of confidence dropped dramatically when it came to third-party data. 43% of respondents were reasonably confident when it came to compliance, with only 9% claiming they were very confident. These percentages show that data which has come from a host of different sources presents much more difficulty when it comes to gathering evidence that the correct permissions are in place for it.
The analysis of customer data is another issue that brands are having, with 28% claiming this. This number shows that brands need more analytical skills and capabilities to properly understand customer data and how they can use it effectively.
An area that most brands reported they would like to improve in is the quality of customer data. More than one in five claimed that better understanding of the importance of good-quality data across the organisation would improve overall performance.
How data is used is one of the most important factors when it comes to driving successful campaigns, with the top four success factors reported as being:
- Quality of contact data.
- Segmentation and targeting.
- Personalised content.
Ensuring Good-Quality Data
Data is essentially a living entity and quickly becomes out of date, because of this regular cleansing is a top priority. 22% of marketers claim they do this daily, but 33% claim they had no formal processes in place to cleanse customer data. With the GDPR now here and potential investigations over non-compliance taking place, marketers risk getting fined, which can be as much as 4% of global turnover.
The quality of data also influences the bottom line, with it estimated that the average cost of poor-quality data being around 6% of annual revenue. This can mean big businesses are spending millions on it, and this is excluding the fines they could receive from GDPR non-compliance.
To be as effective as possible marketers face increasing pressure to use their customer data wisely. The RMDS research shows that this means overcoming challenges around data quality, analytics and the GDPR if they are to successfully engage with customers, drive greater revenues and ensure compliance.