LONDON, UK — A survey of 100 senior marketers in the UK’s consumer packaged goods (CPG) and retail sectors reveals that inaccurate, outdated and siloed data are major obstacles to delivering tailored customer experiences. Conducted by global digital transformation firm Apply Digital, the research highlights that nearly a third of businesses are struggling to fully capitalise on first-party data as they shift CX strategies in a post-cookie era.
Senior marketers fear that Google’s decision to move away from third-party cookies, which will be accelerated by a single opt-in experience on Chrome this year, will disrupt their marketing performance. Notably, 29% worry this will increase customer acquisition costs and over a quarter (27%) are concerned they could lose market share to competitors.
Although 99% of businesses are still using third-party tracking cookies to automatically buy ads online, 94% of marketers have still either completed or begun the necessary transition towards first-party data. However, 13% are unsure they can craft effective engagement and retention strategies using only first-party data.
Underpinning the concerns are issues with how data is used. Inaccurate and inconsistent data were highlighted as the most significant barriers for nearly a third of senior marketers (34% and 33%, respectively). Outdated and siloed data were also reported as major concerns by 32% and 27% of respondents, respectively, demonstrating the need for improved data skills, tools and management.
A fifth (22%) of respondents reported a lack of tools to properly analyse their data, while a quarter (25%) identified a shortage of in-house or external expertise to effectively process and utilise it. More than one in ten marketers (14%) said CRM systems were not yet fully equipped to capitalise on first-party datastrategies.
Dom Selvon, chief technology officer at Apply Digital, says: “Although most senior marketers are striving to adopt first-party data strategies and adjust to life beyond cookies, only eight percent feel they face no obstacles in building successful strategies around first-party data.
“That’s problematic given customers want brands to understand their needs, demonstrate value, and engage meaningfully. This means businesses must become data-smart to meet evolving expectations. By mastering data management, marketers can forge deeper, lasting connections, and this makes the ability to effectively leverage first-party data critical to the future of customer relationships.”
