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1、Customer Data in ActionRemoving Hurdles to Create Transformational Impact2 2Table of Contents3 Executive Summary4 About the Research6 Key Insights10 Current State of Data-Driven Marketing13 Unlocking Better Returns on Customer Data 13 People16 Process20 Technology25 Core Takeaways26 Key Suggestions2
2、7 About the Authors3 3Executive SummaryThis report,based on a survey of marketing leaders at top business-to-consumer(B2C)brands,explores the barriers marketers encounter in effectively utilizing their customer data.The findings reveal a telling challenge:81%of marketers rate their technology infras
3、tructure as only adequate for now,partially adequate,or inadequate in supporting data-driven marketing initiatives.Shaping a data-centric vision,refining data practices,embracing technology,and fostering a culture that thrives on change can help companies better put their customer data into action.H
4、owever,its not always easy to know where to start.For marketing leaders,this report serves as a guide to understanding the people,process,and technology issues that make it difficult to get better returns from customer data.It addresses organizational challenges,process inefficiencies,and technologi
5、cal impediments to data utilization,and suggests improvements that can enhance the overall effectiveness and efficiency of data-driven marketing strategies.4About the ResearchFrom March 19 to April 10,2024,the WBR Insights research team surveyed 100 leaders from consumer brand manufacturers and mult
6、i-brand retailers to generate the results featured in this report.Participation was voluntary,with respondents chosen based on availability and the demographic criteria outlined below.Respondent identities were confirmed by phone before completing the survey but remain anonymous throughout.Half of t
7、he respondents are directors.The remaining respondents are vice presidents(30%),department heads(10%),and C-suite executives(10%).What is your seniority?10%C-Suite 30%Vice President 10%Department Head 50%DirectorThe respondents occupy roles in marketing(44%),customer analytics(30%),and customer expe
8、rience(26%).What is your role?44%Marketing 30%Customer Analytics 26%Customer Experience5The respondents represent companies that manufacture and sell a variety of consumer products,including health and beauty(9%),apparel(8%),auto and transportation(8%),and home furnishing goods(8%),among others.Whic
9、h type of company do you represent?9%Health&Beauty 8%Apparel 8%Auto&Transportation 8%Home Furnishing 8%Sporting Goods 7%Department Stores 7%Entertainment,Food,and Travel 7%Food&Beverage 7%Hardware,Electronics,and Appliances 7%Telecommunications 7%Toys&Hobbies 6%Pet&Animal 6%Supermarkets 5%Specialty
10、RetailThe organizations represented in the report vary in size,as measured by annual revenue.More than half of the respondents(51%)come from companies that make more than$1 billion in annual revenue.$100 million to$250 million$250 million to$500 million$500 million to$1 billion$1 billion to$5 billio
11、n$5 billion to$10 billionMore than$10 billionWhat is your annual revenue?17%13%19%20%10%21%6 6Key InsightsCurrent State of Data-Driven MarketingEffective first-party data utilization is the foundation for growth:Turning customer insights into action can be challenging:Privacy is a major concern:32%v
12、iew the development and improvement of products or services as a key outcome of effectively utilizing customer data.31%cite gaining a competitive edge in the market.56%rate their ability to put customer data into action today as only moderately effective(25%),somewhat ineffective(30%),or not at all
13、effective(1%).43%cite managing data privacy and consent issues as a primary concern,with 28%considering it their top challenge and 15%placing it as their second.7 7Unrealistic technical demands are getting in the way:Cultural challenges underscore the need for robust change management:50%of marketin
14、g leaders are either uncertain about their teams skill sets,or do not believe that their teams possess the necessary technical skills for effectively utilizing customer data in their marketing strategies.71%identify integrating new technologies with existing processes as the biggest obstacle to beco
15、ming data-driven.Key Insights ContinuedPeopleLeadership is setting the tone for success:89%of respondents agree or strongly agree that their leadership backs efforts to enhance the use of customer data.The Keys to Unlocking Better Returns on Customer Data8 8A unified vision is key to successful cust
16、omer data collaboration:Outsourcing data collection and utilization to external agencies has its pros and cons:67%say communicating a unified vision and understanding of datas value across departments is the best way to support effective collaboration on customer data initiatives.74%agree or strongl
17、y agree that working with an agency to put their customer data into action is cost-effective.93%dont believe it helps shorten time-to-market.Key Insights ContinuedProcessEfforts to break down organizational silos are underway,but theres more work to be done:Cross-team collaboration is primarily focu
18、sed on data integration:38%say their marketing teams work together with others such as IT,sales,and customer service several times a week.47%say their teams collaborate only occasionally or rarely.63%is spent on sharing customer insights and analyses.70%of cross-team collaboration is spent on integr
19、ating customer data across various platforms.9 9Amid these challenges,marketing leaders are prioritizing privacy compliance:Real-time data access is viewed as the lynchpin for success:67%are planning to invest in their ability to adhere to privacy and security regulations in the next 12 months to mi
20、tigate risk.28%believe real-time data access is the best way to get better better returns on customer data.Key Insights ContinuedTechnologyTechnology deficiencies hinder data-driven marketing strategies:Data integration and quality concerns top list of technological challenges:81%rate their current
21、technology infrastructure as only adequate for now(33%),partially adequate(46%),or inadequate(2%)in supporting data-driven marketing initiatives.72%of the respondents struggle to integrate data from multiple sources and platforms.56%struggle to ensure data quality and cleanliness.10Current State of
22、Data-Driven MarketingFirst-party data is the foundation for growthIn todays dynamic environment,first-party customer data has become an invaluable strategic asset.This data,which is collected directly from customers and typically involves obtaining explicit user consent,offers unique insights into c
23、onsumer preferences,behaviors,and needs,so companies can foster stronger customer relationships and drive sustainable growth in an increasingly competitive marketplace.When companies can effectively collect,analyze,and activate their first-party data,they can generate more valuable outcomes for thei
24、r business.For example,32%of the respondents view the development and improvement of products or services as a key outcome of effectively utilizing customer data,followed closely by 31%who say gaining a competitive edge in the market represents a key outcome.Improving and creating new products/servi
25、cesBecoming competitive in the marketGrowing customer satisfaction and loyaltyImproving personalization and targetingEnhancing spend efficiencyDriving operational efficiencies across the businessIn your experience,which of the following outcomes best represents“achieving better returns on your custo
26、mer data”?32%31%12%12%11%2%11Turning customer insights into action can be challengingThe good news is that most businesses are sitting on a goldmine of customer data.However,many struggle to turn it into value for their business.In fact,over half of the respondents rate their ability to put customer
27、 data into action today as only moderately effective(25%),somewhat ineffective(30%),or not at all effective(1%).This challenge is expected to intensify as the volume,variety,and velocity of first-party customer data continues to increase.According to the study,a significant majority of respondents i
28、dentify analyzing large volumes of data as their top challenge in effectively utilizing data for marketing purposes,with 29%ranking it as their most difficult challenge and another 22%ranking it as their second most difficult challenge.Additionally,nearly half of the respondents cite managing data p
29、rivacy and consent issues as their main concern,with 28%considering it their top challenge and 15%placing it as their second.Not at all effectiveSomewhat ineffectiveModerately effectiveVery effectiveHighly effectiveHow would you rate your organizations ability to put customer data into action today?
30、1%30%25%30%14%12Rank the following data challenges based on the difficulty they present to your marketing efforts.In this case,“1”means“greatest challenge.”Analyzing large volumes of dataManaging data privacy and consent issuesTranslating data insights into strategic actionsEnsuring data accuracy an
31、d qualityUnifying data from multiple sources 1 2 3 4 517%17%27%20%19%28%15%19%17%21%14%22%17%25%22%22%13%18%18%29%12%24%24%20%20%These findings underscore a critical point in data management for brands:without robust data collection,analysis,and activation capabilities to unlock the full potential o
32、f their customer data,companies risk falling behind competitors who can capitalize on emerging opportunities,tailor offers to individual preferences,and deliver personalized experiences that resonate with customers on a deeper level.Moreover,the emphasis on data privacy and consent highlights the gr
33、owing scrutiny surrounding how customer data is handled and the significant impact that customers perceptions of data security can have on businesses.It signals an urgent need for companies to invest in robust data governance frameworks that ensure compliance with regulations and bolster consumer tr
34、ust.13Unlocking Better Returns on Customer Data PeopleModern technology,like a customer data platform(CDP),can help businesses better collect,analyze,and activate privacy compliant first-party data to generate more valuable outcomes for their business.Yet,success often hinges on the organizations ab
35、ility to effectively manage change.In fact,the findings from this survey underscore the enduring significance of the people,process,and technology(PPT)framework in driving better returns on customer data.Setting the tone for organizational successThe people component of the PPT framework encompasses
36、 everyone involved with or impacted by an organizations adoption of data-driven processes and their supporting technologies.It emphasizes the importance of clear communication and active support from all levels from top executives to the employees who use the data to support their day-to-day efforts
37、.The research shows that most brands currently have robust leadership support for data utilization initiatives.Specifically,89%of respondents agree or strongly agree that their leadership backs efforts to enhance the use of customer data.When leaders champion data-centric initiatives,they set a prec
38、edent that encourages the entire organization to value and leverage data for strategic advantage.Strongly agreeAgreeNeutralDisagreeTo what extent do you agree with the following statement:“I believe there is strong leadership support within our organization for initiatives aimed at improving custome
39、r data utilization.”35%54%1%10%14Prioritizing no-code tools for hands-on doersHowever,tools that require marketers to code like engineers create challenges for effectively accessing and using relevant data to gain deeper insights and take decisive action.In fact,half of the respondents are either un
40、certain about their teams skill sets or do not believe that their teams possess the necessary technical skills for effectively utilizing customer data in their marketing strategies.Specifically,45%of respondents are neutral,while 5%disagree with the statement that their team has the requisite techni
41、cal skills.These findings emphasize the need for no-code tools that provide marketing and other hands-on doers with access to data and the means to apply the insights to high-performing actions in market without coding or submitting tickets to other departments.Navigating cultural challenges While t
42、echnical skills are paramount,companies must also overcome significant cultural barriers if they hope to successfully implement a first-party data-driven marketing strategy.The study reveals that the most significant cultural obstacles to becoming data driven include integrating new technologies wit
43、h existing processes(71%),resistance to change from traditional practices(51%),and being overwhelmed by the volume and complexity of data(37%).Strongly agreeAgreeNeutralDisagreeTo what extent do you agree with the following statement:“I believe our team has the technical skills necessary to effectiv
44、ely analyze and leverage customer data for marketing decisions.”2%48%5%45%15Difficulty integrating new technologies with existing processesResistance to change from traditional marketing practicesOverwhelmed due to data volume and complexityLimited cross-departmental collaborationLack of leadership
45、support for data initiativesInsufficient data literacyLack of understanding or appreciation of datas valueLack of incentives to adopt data-driven practicesFear of failure or misinterpreting dataPerceived threat to job security or rolesWhat are the top three biggest cultural barriers your organizatio
46、n faces in becoming data-driven?71%51%37%27%25%23%18%18%16%14%These findings reinforce the critical need for robust organizational change management.By tackling these top cultural challenges head-on,companies can create an environment conducive to leveraging data insights for informed decision-makin
47、g and strategic growth.Marketing leaders can start by communicating the benefits of a data-driven approach,such as increased efficiency and ROI.They could also provide training and resources on how to collect,analyze,and interpret data effectively with the organizations current and new technologies.
48、Additionally,breaking down departmental silos to foster cross-functional collaboration will enable a more holistic understanding of customer behavior and preferences and ensure that data is utilized more effectively and consistently across the organization.16ProcessEnhancing cross-team collaboration
49、Process in the PPT framework refers to the workflows and responsibilities related to tasks such as data collection,analysis,segmentation,personalization,and more.It emphasizes the importance of cooperation and collaboration among different teams and departments to maximize the value derived from fir
50、st-party data.A significant 38%of survey respondents say their marketing teams work together with others such as IT,sales,and customer service several times a week,while 15%do so daily.This collaboration frequency demonstrates how far brands have already come in their mission to break down silos bet
51、ween departments.The most common ways marketing teams collaborate with other departments on initiatives that involve customer data include integrating customer data across various platforms(70%)and sharing customer insights and analyses(63%).Additionally,half of the respondents(50%)mentioned that th
52、eir teams engage in regular inter-departmental meetings to ensure alignment on strategies and goals.How frequently does your marketing team collaborate with other departments(e.g.,IT,sales,customer service)on initiatives that involve customer data?15%Very frequently on a daily basis 38%Frequently se
53、veral times a week 43%Occasionally a few times a month 4%Rarely once a month or less17Integrating customer data across systems(e.g.,CRM,sales platforms)Sharing customer insights and data analysesRegular inter-departmental meetings to align on strategies and goalsTraining sessions or workshops to enh
54、ance data skills across departmentsCollaborative problem-solving sessions on data-related challengesCo-developing customer experience strategiesCross-functional teams or task forces on specific projectsJoint planning of marketing campaignsIn what ways does your marketing team collaborate with other
55、departments(e.g.,IT,sales,customer service)on initiatives that involve customer data?70%63%50%49%47%46%43%31%These findings suggest that organizations are placing a significant emphasis on using integrated data to drive marketing strategies and decisions.By integrating customer data from various sou
56、rces,organizations can create a comprehensive view of their customers,enabling more personalized and targeted marketing efforts.Similarly,sharing customer insights and analyses across departments allows for a deeper understanding of customer behavior and preferences.This shared knowledge can inform
57、not only marketing strategies but also product development,sales tactics,customer service approaches,and more,leading to a more cohesive and customer-centric strategy across the entire organization.However,a significant number of respondents(47%)say their teams collaborate only occasionally or rarel
58、y.This could be due to various reasons,such as lack of communication or coordination,or simply because the different departments have separate agendas and goals.18According to marketing leaders,the most effective ways to overcome these challenges and support effective collaboration include communica
59、ting a unified vision and understanding of datas value across departments(67%),implementing integrated technology platforms that facilitate data sharing(42%),and adopting effective conflict resolution processes for data-related challenges(31%).More than one-quarter of the respondents also identified
60、 strong leadership support(27%)as an important factor.Unified vision and understanding of datas value across departmentsIntegrated technology platforms that facilitate data sharingEffective conflict resolution processes for data-related challengesStrong leadership support for collaborative data init
61、iativesRegular cross-departmental meetings and strategy sessionsCross-functional teams dedicated to specific data projectsComprehensive training programs on data literacy and toolsIncentive structures that reward collaborative successesShared goals and metrics for data-driven outcomesOpenness to cha
62、nge and innovation within the organizationClear communication channels and data-sharing mechanismsRobust data governance and privacy practicesAgile methodologies adopted for data project managementWhat are the top three most significant factors supporting effective collaboration on customer initiati
63、ves at your company?67%42%31%27%23%19%18%18%15%14%11%10%5%19The pros and cons of agency collaborationCollaboration with external agencies can also be helpful in more effectively leveraging customer data.This is an especially important option for companies that dont have the data and technology skill
64、s they need in-house.The survey highlights that a significant 76%of companies utilize external agencies for managing customer data.While almost three-fourths(74%)of these respondents agree or strongly agree that working with an agency to put their customer data into action is cost-effective,there is
65、 skepticism about whether outsourcing speeds up the marketing process,as a majority of these respondents are neutral(85%)or disagree(7%)that it shortens the time-to-market.This dichotomy suggests that while external agencies are valued for their potential to cut costs,their impact on accelerating ma
66、rketing initiatives is not as pronounced.Companies may find cost savings in avoiding the need to develop in-house capabilities,but the anticipation of quicker market readiness might not be met.Does your organization use external agencies for managing or leveraging customer data in your marketing eff
67、orts?76%Yes,we use agencies.24%No,we manage all customer data activities in-house.The survey highlights that a significant 76%of companies utilize external agencies for managing customer data.20TechnologyAddressing gaps in data-driven marketing infrastructure As the final piece of the PPT framework,
68、technology plays a pivotal role in embracing data-driven marketing strategies.However,its evident that many companies lack the appropriate technology stack to achieve their marketing objectives.In fact,most respondents rate their current technology infrastructure as only“adequate for now”(33%),“part
69、ially adequate”(46%),or“inadequate”(2%)in supporting data-driven marketing initiatives.Technological challenges associated with effectively utilizing customer data may be driving this sentiment.For example,72%of the respondents struggle to integrate data from multiple sources and platforms,while 56%
70、struggle to ensure data quality and cleanliness.Other notable challenges include adhering to data privacy and security regulations(52%)and accessing real-time data for timely decision-making(51%).These challenges prevent companies from harnessing the full potential of their first-party data to strea
71、mline marketing operations and personalize customer experiences at scale.Fully adequate It meets all our needs.Adequate for now It meets our current needs but may require upgrades soon.Partially adequate It meets some needs but we face significant limitations.Inadequate It does not meet our needs an
72、d hampers our data-driven efforts.How would you rate the adequacy of your current technology infrastructure in supporting data-driven marketing initiatives?19%33%2%46%21Integrating data from multiple sources and platformsEnsuring data quality and cleanlinessAdhering to data privacy and security regu
73、lationsAccessing real-time data for timely decision-makingAnalyzing large volumes of data efficientlyImplementing advanced analytics or AI capabilitiesTraining staff on technology and toolsWhich technological challenges/opportunities does your organization face in utilizing customer data effectively
74、?72%56%52%51%48%48%46%Strategic investments in data capabilities Despite the top technological challenges,there is a notable shift in priorities,with 67%of respondents planning to invest in enhancing their organizations ability to adhere to privacy and security regulations in the next 12 months.This
75、 indicates a recognition of the importance of prioritizing data privacy and security measures alongside other efforts to optimize data utilization,including the ability to integrate data from multiple sources(58%),analyze large volumes of data efficiently(57%),and ensure the quality and cleanliness
76、of their data(57%).22Adhering to data privacy and security regulationsIntegrating data from multiple sources and platformsEnsuring data quality and cleanlinessAnalyzing large volumes of data efficientlyAccessing real-time data for timely decision-makingImplementing advanced analytics or AI capabilit
77、iesTraining staff on technology and toolsIn the next 12 months,in which of the following initiatives does your organization plan to invest?67%58%57%57%48%47%42%CDPs are changing the game These investment priorities underscore the importance of CDPs in addressing key technological challenges and impr
78、oving companies data collection and utilization capabilities.In fact,an overwhelming majority of respondents(83%)say they are currently using a CDP.Does your company currently use a customer data platform(CDP)?83%Yes 17%No23A CDP acts as a unifying force,aggregating disparate data sources into a sin
79、gle,comprehensive view of the customer that updates in real time.The high quality of the data in these unified profiles accounts for everything from individual consent status and identity resolution to sub-second updates,enabling companies to derive actionable insights from their data and foster dyn
80、amic,personalized customer experiences.Moreover,robust consent management capabilities ensure that companies are compliant with data privacy regulations,mitigating risk while building trust with customers at the same time.Real-time data access drives real returnsHowever,unified profiles that update
81、in real time arent enough if they dont offer utility to marketers and other users within the business.They also need to be able to do something with that data in real time.When asked what single enhancement they could add to their technology infrastructure to get better returns on their customer dat
82、a,one-quarter of the respondents(28%)prioritized real-time data access.Real-time data access is valued for its ability to facilitate swift decision-making and responsiveness to customer needs and market changes.It underscores the growing demand for agility in business operations,especially when it c
83、omes to marketing and advertising.A CDP acts as a unifying force,aggregating disparate data sources into a single,comprehensive view of the customer that updates in real time.24This demand for real-time data access suggests those companies that are currently using a CDP may actually be using platfor
84、ms that dont sit within the category,or their CDP lacks essential functionalities.In a crowded market where every platform touts the ability to transform data with“real-time”campaigns,companies must exercise caution when evaluating solutions and look for a single,cohesive platform that helps them tr
85、ansform their customer data from a thing they collect and store to a thing they learn from and profit by.Real-time data accessAdvanced analytical capabilitiesEnhanced data quality managementBetter privacy and securityScalabilityImproved data integrationUser-friendly interfacesIf you could implement
86、a single enhancement to your technology infrastructure to get better returns on your customer data,what would it be?28%24%15%15%11%4%3%2525Core TakeawaysThe findings from this comprehensive study underscore the pivotal role that first-party data plays in driving business growth.By providing valuable
87、 insights into consumer preferences and behaviors,companies can cultivate stronger customer relationships and gain a competitive advantage.However,many businesses struggle to translate customer data into tangible value.These challenges will only intensify as the volume,variety,and velocity of first-
88、party data continues to increase.Customer data platforms have become essential tools for collecting,analyzing,and activating customer data in real time,so companies can generate more valuable outcomes for the business.But true success requires more than just technology;investments in people and proc
89、ess are equally important.By addressing cultural barriers,enhancing collaboration,and investing in advanced data capabilities,businesses can unlock the full potential of their customer data and drive sustainable growth in an increasingly competitive landscape.2626Key Suggestions1 Prioritize a data-c
90、entric vision:Ensure the the goals,use cases(immediate priorities and long term road map),timing,and expected outcomes of first-party data collection and utilization are not only understood across the organization,but actively prioritized and supported from the senior-most leaders in the company,to
91、the users who are actually using the data to support their day-to-day efforts.2Strengthen data governance and compliance:Develop robust data governance frameworks to address privacy and consent issues,ensuring compliance with regulations and building consumer trust.Prioritize investments in technolo
92、gies that support data privacy and security,mitigating risks associated with data handling.3Embrace technology:Evaluate and invest in modern technology,such as a CDP,to streamline data collection,analysis,and activation processes.Choose platforms with advanced functionalities such as real-time data
93、access and consent management to maximize the value derived from customer data.4Foster a culture of change:Recognize that success in data-driven marketing hinges on more than just technology.Invest in people and processes by addressing cultural barriers,enhancing collaboration across teams and departments,and providing necessary training and resources to bridge the skills gap.27About the AuthorsBlueConic is the operating system that puts data into action for marketing and growth doers.The industry-first solution em