Inefficient management of customer data is costing organisations millions of pounds each year according to UK CMOs.
The research from data tech firm SBDS, revealed that 67% admit they’ve experienced ‘disasters’ when it comes to managing data and 76% say they could have missed out on opportunities because data has not been managed effectively in house. On average, they estimate that poor data handling is costing their business almost £1m (£985,000).
With data management being a key focus for CMOs, 78% have adopted technologies such as DMPs (Data Management Platforms) and CDPs (Customer Data Platforms). Despite high adoption, almost a third (32%) say they have a more negative view of the technology since using them, this is due to:
1. The platforms haven’t generated any value
2. DMPs and CDPs require a specific skillset
3. There is a lack of understanding on how the platforms work
Almost half (49%) of CMOs admit they don’t have the in-house talent with the skills to manage data, despite 77% of them saying they are primarily responsible for how customer data is collected, stored, handled and utilised.
Simon Theakston, co-founder, SBDS, comments: “The findings paint a picture of CMOs struggling to see a return on the important tech investments they’ve made. Data management tools are sophisticated in their own right, but need the expertise to manage them for the best results. The world is currently awash with data and software, yet there is a lack of skilled people to make sense of it all.
“Brands were attracted to DMPs, and latterly CDPs, for the right reasons – the promise of less wastage in advertising spend, one centralised location for all data, and the ability to drive scale through smart data segmentation. The problem was that many businesses rushed in without fully appreciating the scale of the challenge, and often without the in-house skills to take advantage of their shiny new tech.”
CMOs are thinking of ways to tackle the lack of skills – just under a third (30%) have plans to ask for advice on how to get more out of their customer data and they also intend to work with specialist data partners (28%).