New research has found that brands in the UK are underutilising their data and failing to gain a proper understanding of how it can be effectively used. 

Data suggests that, despite only 5% of marketers not activating their data at all, just over a third (39%) of brands are utilising advanced measurement solutions to gain better insights from their data.  

Technology and digital marketing consultancy Making Science carried out the study, which surveyed marketing decision makers across the UK.  

Making Science surveyed three main sectors– retail and eCommerce, financial services, and travel – and discovered that retail in Britain is behind both other sectors in its data practices.  

Data showed that 7% of retail and eCommerce respondents are less likely to gather both on or offline data, compared to only 1% of financial and travel respondents.  

Retail brands are also less likely to validate the quality of their data, with one in eight failing to do so. This is significantly higher than both finance (1%) and travel (2%). 

12% of retail respondents stated that they did not activate their data at all – much higher than financial (1%) and travel (2%) – while 15% of retail brands have not invested in data automation, compared to the much lower 3% for financial services and 4% for travel. 

More than half (55%) of all surveyed marketers said that they aim to gain new clients through data activation in the future. This means that the findings highlight a waste of efforts considering the post-pandemic drive for efficiency and the pressure of growing economic concerns on ROI.     

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Commenting on the research, Kevin Daly, first-party data director at Making Science, said: “The number of brands investing in data collection with the aim to grow their business and enhance current services, yet failing to fully complete the final stage of activation, where the benefits of their efforts are rewarded, was particularly surprising to us.  

“Almost all companies look to ensure the quality of their data, with six in 10 using internal processes and five in 10 relying on external platforms. Nine in 10 are going a step further and enriching their data, using a mixture of machine learning and AI tools. However, after all of the hard work, the majority are failing to use advanced measurement solutions to activate their data to its full potential.  

“It is clear that there is currently a lack of understanding or resources to complete the most important stage in the data journey: activation.” 

Data literacy has now become and essential part of running any business, and companies must start understanding the value their data can bring.  

Research from last year suggested that poor understanding, inadequate valuing, and mismanaging data is costing firms billions of dollars every year. 

The Data Leadership Report from Anmut found that 91% of business leaders believe data is critical to the success of their businesses. 

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