Only 14% of organizations have achieved a 360-degree view of the customer, according to Gartner’s latest research. However, 82% of respondents said they still aspire to attain this goal in a Gartner survey of 402 marketing, IT and other enterprise leaders responsible for customer data initiatives from May through July 2021.
This short research review will cover why CDP might displace CRM; and the hallmarks of what a company should keep in mind when aiming for 360-degree view share.
Are customer data platforms (CDP) displacing CRM?
For respondents who achieved a 360-degree view, customer data platforms (CDPs) were the most frequently cited technology used to house it, displacing customer relationship management (CRM) platforms.
However, respondents still working toward a 360-view were more likely to identify CRM as their preferred platform. Acquiring a CDP was not by itself sufficient, since three times as many respondents had adopted a CDP.
“Marketing teams have been engaged in a data arms race over the past decade, attempting to use technology to collect every conceivable data point on customers with the assumption that more data is better,” said Benjamin Bloom, vice president analyst in the Gartner Marketing practice.
Does gathering more customer data really help achieve goals?
Gartner’s survey found that 60% of respondents believe they need every data point. However, nearly 50% of respondents said they did not achieve alignment on what constitutes a 360-degree view, complicating any technology acquisition.
Acquiring and leveraging customer data continues to be enticing to business leaders, as consumer behaviours are forced to change via the adoption of channels such as digital commerce.
However, respondents noted that exhaustive data collection isn’t worth the effort. In fact, 72% of respondents believe that the more data they collect, the less benefit they see.
A promise of creating meaningful customer value
Organizations that have achieved a 360-degree view share some notable hallmarks that all companies should keep in mind. These include:
- Create a consensus on what a 360-degree view means
- Overcome data quality issues
- Implement a cross-functional governance structure for customer data
The survey also revealed that those who had achieved a 360-degree view were more likely to say they were motivated to improve product features. This suggests that successful organizations invest in product innovation that can create meaningful customer value in exchange for data collection.
Successful organizations are also more likely to be using artificial intelligence and machine learning to support the achievement of business objectives. These technologies may support novel experiences for customers and efficiency gains for the enterprise.