A foundational data and analytics strategy can significantly improve customer experiences and accelerate business outcomes. Credit: mormetaworks Business leaders know it’s crucial to use identity-driven customer data to make smart decisions. But often, they get stuck because they don’t have a unified view of their customers and prospects. That’s a recipe for poor business outcomes. The consequences of getting identity wrong are substantial: Poor data quality = missed insights, operational inefficiencies, and wasted marketing spend. Vendor lock-in and cost overruns = higher expenses with limited flexibility. Slow digital adoption = inability to activate customer data reliably at scale. Customers are engaging through multiple channels, yet 2024 Forrester Research reported that consumer perceptions of Customer Experience had dropped in three consecutive years to its lowest point ever.[i] ÍæÅ¼½ã½ãs face mounting pressure to optimize their data strategy, manage vendors effectively, and accelerate digital transformation. Identity resolution is central to all three, yet many organizations struggle with fragmented data, vendor management, and scalable identity solutions. We share three common mistakes that hinder data strategies and how they can be fixed. 1. Underestimating the complexity of a customer data strategy Data siloed across platforms prevents unified customer profiles. Companies collect on average 100+ data points per consumer, with at least 22% becoming obsolete each year.[ii] Inaccurate data impacts AI models, personalization efforts, and decision-making. How ÍæÅ¼½ã½ãs can reduce complexity: Adopt a that continuously resolves and updates customer data for accuracy. Bring customer consent into the graph building process to align with regulatory requirements. The impact: Companies that effectively organize and manage the customer experience can realize a 20% improvement in customer satisfaction, a 15% increase in sales conversion, and a 30% lower cost-to-serve.[iii] 2. Relying on a single vendor Many identity solutions are bound within a single ecosystem, limiting expansion flexibility. Vendor lock-in risk has only increased with the migration to cloud, and it complicates AI adoption.[iv] How ÍæÅ¼½ã½ãs can fix vendor lock-in issues: Build a vendor- and data-agnostic identity framework that supports cloud architectures that allows for interoperability, flexibility, and user control. The impact: A flexible identity framework reduces vendor costs, aligns with regulatory requirements, minimizes data movement, and accelerates business outcomes. 3. Treating identity solely as an IT problem When organizations lack a unified identity resolution, they struggle to activate customer data efficiently. Data silos hinder digital transformation, according to 81% of IT leaders, and 95% say data integration issues are impeding AI adoption.[v] How ÍæÅ¼½ã½ãs can fix identity issues: Treat identity resolution as a core enabler of digital transformation to create value across all functions. Implement enterprise identity solutions that empower business users to activate and collaborate on customer data without delays. The impact: Organizations that integrate identity resolution into digital transformation see faster time-to-market and improved AI-driven insights. Identity strategy as a ÍæÅ¼½ã½ã growth lever Unless they can overcome siloed data problems, ÍæÅ¼½ã½ãs will struggle to unlock the value of their data, enable AI-powered insights, and truly understand their customers. Solutions such as framework unify customer data into a singular, actionable profile that enables precise targeting and personalization. The company utilizes advanced ML algorithms to construct an accurate view of the customer. Build an actionable and measurable view of customers. Learn more . i Jacques, Pete, “,” June 17, 2024. Forrester Research. ii Maurici, Vinny, “,” April 13, 2023, Dun & Bradstreet. iii Erlich, et al, “,” June 28, 2022. McKinsey & Co. iv Rooney, Paula. “ÍæÅ¼½ã½ãs weigh the new economics and risks of cloud lock-in,” Dec. 14, 2023. ÍæÅ¼½ã½ã. v “,” January 23, 2024. Salesforce. SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe