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]
CIOs 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 CIOs can reduce complexity:
- Adopt a first-party identity graph 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 CIOs 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 CIOs 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 CIO growth lever
Unless they can overcome siloed data problems, CIOs will struggle to unlock the value of their data, enable AI-powered insights, and truly understand their customers.
Solutions such as LiveRamp’s Enterprise Identity 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 here.
i Jacques, Pete, “Customer Experience Quality In The US Falls To An All-Time Low,” June 17, 2024. Forrester Research.
ii Maurici, Vinny, “Understanding the Phenomenon Also Known as Data Decay,” April 13, 2023, Dun & Bradstreet.
iii Erlich, et al, “How the operating model can unlock the full power of customer experience,” June 28, 2022. McKinsey & Co.
iv Rooney, Paula. “CIOs weigh the new economics and risks of cloud lock-in,” Dec. 14, 2023. CIO.
v “85% of IT Leaders See AI Boosting Productivity, but Data Integration and Overwhelmed Teams Hinder Success,” January 23, 2024. Salesforce.
