Have you ever faced the challenge of having an ocean of customer data but struggled to transform it into actionable insights? If so, you’re not alone. Many retailers are finding it increasingly difficult to unlock the full potential of the data they hold, an issue made more pressing by the decline of third-party cookies and the shift towards first-party strategies.
A new survey of UK C-suite executives, carried out by my team at Apply Digital, certainly highlights the scale of this problem. Over a third of retailers report they have had to contend with inaccurate data, and a similar proportion cite inconsistencies that undermine their efforts. Outdated datasets, siloed information, and inadequate analytical tools make these issues even harder to resolve.
This is a problem. Retailers need quality data because it serves as the foundation for effective decision-making and long-term growth. High-quality data ensures marketing spend is more targeted and efficient, reducing wastage and increasing return on advertising investment. It enables brands to develop personalised and meaningful value exchanges with customers based on preferences and behaviours , enhancing engagement and loyalty. Furthermore, accurate data contributes to improved website performance and search engine optimisation, making it easier for potential customers to find the right products and connect with the brand.
In contrast, poor-quality data has serious consequences. It results in marketing messages that are often irrelevant, whichare, at best, ignored and, at worst, risk alienating customers. It’s not only unhelpful, it can also feel impersonal and careless. For consumers, these mistakes are annoying. For retail brands, they demonstrate an inability to deliver personalised experiences that are essential for fostering loyalty and trust.
This is concerning in a world in which customer expectations are rising. The best brands have set the bar high, delivering targeted, engaging content with precision. When other businesses fail to match this standard,they stand out for all the wrong reasons.
It’s not just about the right tech
Addressing these challenges starts with getting the basics right and resolving the root causes of disorganised data management. For instance, our survey data reveals that 14% of retailers do not have their CRM systems set up to maximise the value of their data, and nearly a third (30%) believe they lack the tools — such as customer data platforms (CDPs) or marketing automation systems — to fully leverage first-party customer data or behaviours.
Given that 41% of consumers are more likely to buy from businesses that deliver personalised experiences, retailers need to have robust data analytics in place to meet these expectations. They also need to be able to assess the impact of their customer engagement efforts effectively.
This makes investing in tools that consolidate and refine data essential. However, success also depends on building internal expertise, and creating a culture that prioritises data quality over volume.
The latter is harder to achieve and often requires businesses to reconfigure how different teams and departments work together. This makes data management a cultural issue as much as a technical one, ensuring it is a truly holistic, cross functional consideration across the entirety of a business. Getting this right takes time, effort and sometimes a degree of experimentation. Plan for this, and ensure the necessary resources are available from the start.
Plan around customers’ needs
Regardless of best practice, no personalisation strategy can succeed without having the right data in place. The trick is convincing customers to share it in the first place and getting the value exchange right will mean listening closely to their needs and concerns.
Our research highlights that customers are increasingly questioning why and how their data is collected and used. When asked what would encourage consumers to share their data with businesses, 33% expressed a desire for “clear control” over what data is shared and for what purposes; 30% emphasised the importance of assurances that their data would be used responsibly; and 30% sought data use transparency..
This makes it crucial for brands to respond with clarity and accountability.. Communicating intentions clearly to detail the benefits data sharing will bring - such as rewards, personalised offers, or improved experiences — and then demonstrating genuine value to those who opt-in is, of course, essential.
The potential of these approaches is evident in success stories across the retail sector. Kraft Heinz, for example, revamped its digital experience to better understand customer behaviour, resulting in a marked increase in engagement and satisfaction. Meanwhile, the skincare brand Dr. Barbara Sturm developed a personalised routine programme that collected highly relevant data without overwhelming customers. Both examples illustrate that getting personalisation right isn’t about the size of the investment, rather it is the thoughtfulness of the approach.
Set up for success
The transition to effective first-party data strategies is certainly not without its challenges, but the reality is customer engagement strategies are becoming extremely sophisticated and those businesses that drag their feet will be eclipsed by those who know how to correctly leverage data for effective customer engagement and growth.
Yet not all businesses are equipped to make these changes on their own. External expertise can play a valuable role, particularly during the early stages of an improved data management journey. Partnering with specialists can help get the basics right early on and allow organisations to navigate the complexities of new technologies and strategies while avoiding common pitfalls. However, be mindful that any such partnerships focus on knowledge transfer, ensuring that in-house teams are fully empowered to go it alone when the time is right.
For businesses determined to go solo, be sure to invest in people as much as the right tools. Training staff to work with advanced analytics, breaking down silos between departments, and fostering collaboration can bridge gaps in expertise. Even incremental improvements in these areas can yield significant results over time.
To thrive, businesses must reframe how they view data. It is not just a by-product of digital interactions but a core asset that can shape the future of customer relationships. By investing in the right tools, building expertise in every department, and approaching data with care and transparency as a cross-functional consideration, retail brands can deliver on what modern customers expect. Truly exceptional brands can even redefine the baseline for the next era of engagement.