Data has become an essential asset for businesses, driving critical decisions and operations. The year marks a significant transition into using data as a differentiator. To celebrate this data-driven mindset, we created our Era of Data Differentiation e-book, which supports you in collecting, managing, and utilizing data to gain a competitive edge. We’ve created a recap about the importance of data differentiation, what you need for success and additional resources.
Why Is Clean Data Important?
Data is important to businesses because clean, reliable data supports all areas of your company. If you use unreliable data, you risk creating compounding negative effects on all areas of your business (see our blog, What Happens You Fuel AI With Bad Data?).
Data has become the lifeblood of business, serving as a crucial resource that requires meticulous collection, filtering, enrichment, and management. This ensures it can be effectively utilized across the organization. This year, we are at a pivotal moment in the evolution of data, marking the beginning of a new era—The Era of Data Differentiation (for more, see our new ebook).
What Is Data Differentiation?
Data differentiation involves comprehending your data in such detail that you can identify and target your audience effectively, at scale, during every stage of the sales and marketing funnel.
Having a solid, reliable data foundation can be used to fuel key areas like Artificial Intelligence (see our product, Tealium for AI), customer experience, and privacy compliance.
- AI and Machine Learning: Clean and consistent data is vital for the success of AI and machine learning models. These technologies rely heavily on high-quality data to deliver accurate and actionable insights.
- Customer Experience (CX): Exceptional customer experience benefits from real-time data that is continuously updated and activated. Businesses should integrate data from all touchpoints to provide a seamless and personalized customer journey.
- Privacy Compliance: With increasing privacy regulations and evolving consumer expectations, obtaining consent for data use is crucial. Failure to comply can introduce significant risks and diminish the value of the data.
Why Is Data Differentiation Important?
4 Reasons Why Data Differentiation Matters
Data differentiation is important for several key reasons, including targeted marketing, competitive advantage, better decision-making, and customer insights.
- Targeted Marketing: By understanding data at a granular level, businesses can identify and reach their target audience more effectively, leading to more personalized and impactful marketing campaigns.
- Competitive Advantage: Companies that excel in data differentiation can gain insights that their competitors may miss, enabling them to stay ahead in the market.
- Improved Decision-Making: Detailed data analysis allows for better-informed decisions, reducing risks and enhancing the potential for successful outcomes.
- Customer Insights: It provides deeper insights into customer behavior, preferences, and needs, allowing businesses to tailor their products and services to meet these demands more accurately.
Steps to Achieve Data Differentiation
To succeed in the era of data differentiation, organizations need a robust strategy for data collection and transformation. This involves:
- Proactive Internal Strategy: Developing a comprehensive approach to data management that includes oversight and technology integration.
- Technology Choices: Selecting the right tools and platforms to manage and activate data effectively.
- Customer Data Platform (CDP): Implementing a CDP like Tealium to manage customer data, ensuring it is collected with consent, unified, and activated across various channels.
What Can You Achieve With Data As Your Differentiator?
Success Metrics From Customer Data Platform (CDP) Customers
Powered by a robust data layer + Customer Data Platform (CDP) strategy, these applications and use cases yield real returns. For example:
- In their first years using Tealium’s CDP, NBA basketball team Utah Jazz reported some eye-popping results, including a 34% increase in revenue per visitor and a 62% increase in Return on Ad Spend (ROAS).
- Barceló Hotel Group’s Tealium CDP-driven marketing campaigns earned a 37% increase in revenue.
- Transitioning to Tealium’s CDP, MoneySmart was able to harness the power of more precise customer segmentation to yield a notable 40% decrease in the cost per acquisition.
To learn more about how data can set you apart from competitors and unlock success, download our e-book, Era of Data Differentiation.
