Only about 1 in 4 executives at large US-based firms are highly satisfied with their organization’s ability to extract value from data, though an additional 49% are somewhat satisfied, per results from a Forbes Insights and Acxiom survey [download page]. Data accuracy (70%) is their area of greatest concern, with inaccurate data seen hurting a number of areas.
Chief among those is acquisition marketing, which 71% believe is harmed by inaccurate data. Not surprisingly, customer insights is also a victim of inaccurate data, per 68%, as are marketing production and revenue (each cited by 66%).
Close behind, almost 2 in 3 (65%) feel that inaccurate data hurts customer trust. That’s an important consideration, given that trust has quite an impact on consumers’ actions regarding businesses, from buying behavior to advocacy.
One facet of consumers’ trust is organizations’ regard for their privacy. This issue does raise concerns from executives, about two-thirds of whom rate privacy as a concern (4 or 5 on a t-point scale). However, that leaves about 1 in 3 who rated privacy compliance and ethics of moderate or lesser concern, which the analysts feel “adds up to a staggering number of leaders who fail to grasp its importance.” In fact, ensuring privacy doesn’t appear to be a huge challenge for organizations. Only about 1 in 3 say that managing data in a privacy-compliant environment is a challenge in extracting value from data.
Overall, per the analysts, there is “an opportunity for brands to leverage a focus on privacy for competitive advantage.” That certainly seems to be the case, particularly given that online privacy concerns are growing for a majority of internet users worldwide.
About the Data: The Forbes Insights and Acxiom study describes its methodology as follows:
“This report is based on a survey of 273 executives conducted in October/November 2015 by Forbes Insights. All executives are VP or higher, and 60% of those surveyed are members of the C-suite. Management responsibilities represent a range of functions””including analytics, customer insights and customer intelligence (29%); information and technology (21%); business development and sales (21%); nance (9%); marketing (9%); and general management (8%).
The study includes an even distribution of executives from the financial services; retail and consumer products; automotive; insurance; and travel and leisure industries. All firms represented in the survey are based in the United States, and have annual revenues of $250 million or more, with 39% having more than $1 billion.