In today’s digital age, data has been heralded as the new oil, a valuable resource that can drive business growth and innovation. Yet, despite the abundance of data collected, many businesses are still missing the mark when it comes to leveraging this wealth of information effectively. After 15 years of working with various brands, I’ve witnessed firsthand the gap between data collection and its practical application, leading to missed opportunities and suboptimal customer experiences..
The Current State of Data Collection
Organisations today have access to an unprecedented amount of consumer data. From purchasing behaviours and online browsing habits to social media interactions and customer feedback, the sources are endless. Businesses invest heavily in sophisticated tools and technologies to gather this data, yet a significant portion remains underutilised. The gap lies not in the collection but in the meaningful interpretation and application of this data.
The Why and the How: Unravelling the Disconnect
The first step in addressing this issue is understanding why businesses collect data and how they use it. Companies primarily gather data to gain insights into consumer behaviour, improve marketing strategies, personalise customer experiences, and ultimately drive sales. However, the challenge arises when businesses fail to connect the dots between raw data and actionable insights.
1. Siloed Data Systems: Often, data is stored in disparate systems across different departments, each with a different ‘owner’, preventing a holistic view of the customer journey. This siloed approach hinders the ability to create a seamless and personalised experience. Alignment between business departments, teams and roles is paramount for strategies and tactics to succeed.
2. Lack of Data Literacy: While technology enables data collection, not all organisations possess the necessary skills to analyse and interpret this data effectively (at all seniority levels). This gap in data literacy can lead to misguided strategies and missed opportunities.
3. Privacy Concerns: With growing concerns over data privacy, businesses must navigate the fine line between utilising data for personalisation and respecting consumer privacy. Failure to do so can erode trust and damage brand reputation.
The Impact of Unused Data: A Missed Opportunity
To illustrate the profound impact of unused data, we can draw parallels to the arguments made by Caroline Criado Perez in her book ‘Invisible Women: Exposing Data Bias in a World Designed for Men’. Perez highlights how the lack of gender-disaggregated data leads to systemic biases that affect women’s lives and well-being. Similarly, in the business world, the lack of effective data utilisation results in a significant gap in understanding and meeting customer needs.
Perez states, “The result of a data gap is that women suffer. And the reason women suffer is that their needs are being ignored or misunderstood” (Perez, 2019). In a business context, this translates to a broader spectrum of consumers whose needs and preferences are overlooked due to inadequate data analysis. By failing to leverage data effectively, businesses miss out on the opportunity to engage with their customers meaningfully and deliver superior experiences.
Real-World Examples of Data Misalignment
Poor data synchronisation can severely impact customer marketing journeys, leading to frustrating experiences and lost opportunities. Here are some common scenarios where this disconnect becomes evident, along with suggestions on how to resolve each issue:
1. Abandoned Cart Emails Post-Purchase:
Imagine a customer who receives an email prompting them to complete their purchase after they’ve already bought the item. This happens when real-time purchase data isn’t properly integrated with the marketing automation system, leading to a redundant and annoying customer touchpoint.
Solution:
– Real-Time Data Integration: Ensure real-time integration between purchase systems and marketing automation platforms to update customer actions immediately.
– Regular Data Audits: Conduct regular audits of customer journeys to identify and rectify any discrepancies or outdated triggers in automation workflows.
– Dynamic Triggers: Use dynamic triggers that automatically adjust based on recent customer actions, ensuring that communications are relevant and timely.
2. Targeting Ads for Out-of-Stock Products:
Customers are often targeted by paid media ads for products that are out of stock. This not only wastes marketing spend but also frustrates potential buyers. This issue arises from a lack of real-time inventory data integration with marketing platforms.
Solution:
– Real-Time Inventory Sync: Implement real-time syncing between inventory management systems and marketing platforms to ensure ad campaigns only feature available products.
– Automated Campaign Adjustments: Use automated rules within ad platforms to pause or adjust campaigns when products go out of stock, or hit a minimum threshold.
– Communication Channels: Inform customers about restock dates or offer alternatives when a product is out of stock to maintain engagement and interest.
3. Irrelevant Personalisation:
Personalised recommendations based on outdated or incorrect data can lead to irrelevant suggestions, diminishing the trust and effectiveness of personalisation efforts. For example, suggesting baby products to a customer whose children are now teenagers due to outdated demographic data or choosing to disregard demographic data in favour of achieving a ‘bigger reach’
Solution:
– Continuous Data Updates: Regularly update customer profiles with the latest data to ensure personalisation efforts reflect current preferences and life stages.
– Customer Feedback Loops: Incorporate feedback mechanisms where customers can update their preferences and interests, keeping their profiles accurate.
– Behavioural Analysis: Use behavioural data to refine personalisation algorithms, making sure they adapt to changes in customer behaviour and preferences over time.
4. Inconsistent Customer Experiences Across Channels:
When customer data isn’t synchronised across online and offline channels, it results in fragmented experiences. A customer may receive a personalised offer online that isn’t recognised in-store, leading to confusion and dissatisfaction.
Solution:
– Unified Customer Profiles: Create a unified customer profile accessible across all channels to ensure consistent experiences. This can be achieved through customer data platforms (CDPs) that aggregate and synchronise data from various touchpoints.
– Cross-Channel Integration: Ensure systems used by online and offline teams are integrated to share customer data seamlessly, providing a consistent experience.
– Employee Training: Train staff to access and use unified customer profiles, enabling them to deliver a consistent and personalised experience regardless of the channel.
Specific Groups and the Consequences of Data Misalignment
Different groups of customers can have uniquely disappointing experiences when data is not used correctly, leading to exclusion and frustration. Here are some examples (which are by no means exhaustive) and solutions to address these issues:
1. Women:
Women often encounter bias in product recommendations and marketing campaigns due to data models primarily based on male data. For example, fitness apps may suggest workout routines that don’t account for women’s specific health needs, or automotive marketing may overlook women as potential buyers, leading to irrelevant advertisements.
Solution:
– Inclusive Data Collection: Ensure data models include a diverse range of female data points by actively seeking input and feedback from women during the data collection process.
– Gender-Specific Insights: Develop gender-specific insights and tailor marketing strategies to address the unique needs and preferences of women. For example, create fitness routines that cater specifically to women’s health requirements, which will fluctuate over time in line with menstruation and age.
– Diverse Teams: Promote diversity within data science and marketing teams to bring different perspectives and reduce bias in data interpretation and strategy development.
2. People with Physical Disabilities:
If a business fails to track and use data on accessibility preferences, individuals with physical disabilities might receive irrelevant product suggestions or miss out on critical information about accessible features. For instance, a mobility-impaired customer might receive travel recommendations for experiences or destinations that do not have adequate wheelchair accessibility.
Solution:
– Accessibility Data Integration: Collect and integrate data on accessibility needs and preferences into customer profiles.
– Personalised Recommendations: Use this data to offer personalised recommendations that highlight accessible options, such as hotels with wheelchair ramps or events with sign language interpreters.
– Accessible Communication: Ensure all marketing communications are accessible, including providing alt text for images and offering content in multiple formats (e.g., text, audio, video).
3. Neurodivergent Individuals:
Personalised experiences can fall short for neurodivergent customers if data models do not account for their unique preferences and behaviours. For example, online platforms might bombard them with overwhelming sensory inputs, like auto-playing videos or bright, flashing advertisements, which can be distressing.
Solution:
– User Preferences: Allow users to customise their experience by setting preferences for sensory inputs, such as disabling auto-play features or reducing visual clutter.
– Neurodiversity Training: Train all teams, including customer service and UX/UI to understand and accommodate neurodiverse needs, creating more inclusive and comfortable online and offline environments.
– Feedback Loops: Implement feedback loops where neurodivergent customers can easily provide input on their experiences, helping businesses to continuously improve and adapt.
4. Intersectional Groups:
Customers who belong to multiple marginalised groups (e.g., a woman of colour with a disability) often face compounded biases. If data isn’t disaggregated and analysed intersectionally, these customers might receive generic, non-personalised interactions that fail to address their specific needs and preferences. For instance, fashion brands might overlook the style preferences of a woman of colour with a disability, leading to a lack of inclusive product offerings.
Solution:
– Intersectional Data Analysis: Where regulatorily possible and available, collect and analyse data across multiple dimensions of identityto understand the unique experiences and needs of intersectional groups.
– Community Engagement: Engage directly with intersectional communities (including employee resource groups) through focus groups, surveys, and partnerships to gather nuanced insights and co-create solutions that resonate with these customers.
– Inclusive Product Development: Use these insights to develop inclusive products and marketing campaigns that cater to the specific preferences of intersectional customers.
Bridging the Gap: Strategies for Effective Data Utilisation
To summarise, to be able to bridge these gaps, businesses must adopt a more integrated and strategic approach to data collection, analysis and utilisation
Unified Data Platforms: Implementing unified data platforms that consolidate information from various sources can provide a comprehensive view of the customer journey. Enabling businesses to create more cohesive and personalised experiences.
Invest in Data Literacy: Building a culture of data literacy within the organisation is crucial. Training employees to interpret and utilise data effectively will lead to more informed decision-making and innovative solutions.
Ethical Data Practices: Establishing robust data governance frameworks that prioritise consumer privacy and transparency will build trust and foster long-term customer relationships.
AI and Machine Learning: Leveraging advanced technologies such as AI and machine learning will help businesses uncover hidden patterns and insights from data, driving more effective decision making and strategic practices.
The gap between data collection and its effective use is a significant challenge that businesses must overcome to stay competitive in today’s market. By addressing this disconnect, companies can unlock the full potential of their data, leading to enhanced customer experiences and untapped business opportunities. As we move forward, the ability to bridge this gap will distinguish the leaders from the laggards in the ever-evolving landscape of consumer marketing.
In the words of Caroline Criado Perez, “When we exclude half of humanity from the production of knowledge, we lose out on potentially transformative insights” (Perez, 2019). The same holds true for businesses: by not fully utilising consumer data, we miss out on transformative opportunities that could drive innovation and growth. It’s time to bridge the gap and harness the power of data to its fullest potential.
Sign up for our waitlist now at marketing@wecomm.co.uk to unlock unparalleled insights, unforgettable events, and unbeatable networking opportunities.
Keep up to date by following us at Future of Retail X
