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Amperity 2024 Predictions: 2024 Data Trends - How Ready Are You?

vmblog-predictions-2024 

Industry executives and experts share their predictions for 2024.  Read them in this 16th annual VMblog.com series exclusive.

2024 Data Trends: How Ready Are You?

By Derek Slager, co-founder & CTO at Amperity

A lot has changed in the tech landscape in the past 12 months. Data collection practices shifted as new privacy legislation emerged, and as Google announced its plans to disable cookies in 2024. AI has emerged as an essential companion for streamlining business operations with new tools and resources disrupting the market. These trends are sure to raise challenges-and opportunities-in the new year. Here are the top three customer data management practices for IT leaders to incorporate into their 2024 planning.

Pivot to a first-party data approach.

Third-party cookies are becoming less valuable by the day, especially with Google's plans to disable third-party cookies for 1% of Chrome users early in the new year. The behemoth also shared its intentions to continue phasing out cookies for more Chrome users over time. Historically, companies have relied on third-party data to build comprehensive customer profiles, but without it, they will need to rethink their customer data strategy.

Using third-party data was always an ongoing risk since companies don't own or manage the process of data collection outside their own channels. Now that third-party cookies are officially being phased out, brands must turn to first-party data to understand their customers. Using first-party data ensures IT leaders can gather customer insights using their own collection methods that are aligned with best practices for privacy and accuracy. The end of the third-party data era is near and IT teams that haven't begun transitioning to a first-party approach are already behind.

Embrace a scalable customer data strategy.

Managing customer data is no easy feat. Data is often formatted differently and comes from various sources, making it hard to unify and organize. Another complicating factor is that data is generated rapidly, often at a pace that makes it challenging to keep track of with accuracy. Data also must adhere to regulatory stipulations outlined in legislation such as the California Consumer Privacy Act. On top of it all, companies must reconcile data to make sure customer information is complete and accurate-which is easier said than done.

One of the most common barriers to a scalable data strategy is the company's overall data approach. When IT teams don't have a solid plan for processing and organizing data, it becomes challenging to harness the information to its fullest potential. Or, they might not have a reliable system to manage the volume of incoming metrics-making the chore of "cleaning" it even more cumbersome.

Inaccurate and unorganized data is a huge business risk. Without reliable data, organizations could end up launching marketing initiatives or making business decisions driven by incorrect insights. For example, a company might spend hundreds of thousands of dollars on an ad campaign that reaches the wrong demographic or doesn't include a message that resonates with their ideal customer. Adaptable, scalable systems and strategies that manage customer data are essential to delivering effective marketing and business strategies, especially as access to third-party data becomes increasingly limited.

AI will upskill workers and create demand for new skills.

Like other industries, the tech world is facing a shortage of skilled workers. In a recent survey, Deloitte found that "nearly 90% of leaders said that recruiting and retaining talent were a moderate or major challenge."

As the industry reels from hiring struggles, companies that need to adapt to knowledge gaps can use AI to augment software development and other work. AI can drive more efficiency and effectiveness for certain tasks, such as integration and coding, enabling workers to handle new projects for which they don't have specific skills. Going back to the challenges of handling customer data, AI tools can also ease the strain on IT teams by collecting, managing and analyzing it-allowing companies to make the most of their headcount.

However, we're not yet at a point where AI can assist with heavy-duty tasks without clear, detailed direction. To be most effective, users need to learn how to interact with the tool-including how to formulate prompts that will generate the desired results. In the future, "prompt engineering" will become a desired IT skill, especially as related to marketing and analyst positions. As AI becomes a larger part of daily work, companies should seek employees who know how to make the most of these solutions to perform their jobs more efficiently.

Navigating the road ahead.

Although it's impossible to know exactly what 2024 will bring, IT leaders can glean several important takeaways from the shifts that are already underway. With major companies setting limits to protect user privacy, it's reasonable to expect that more enterprises will follow suit. Workforce trends suggest that hiring the right skill sets is going to be an ongoing issue as organizations strive to augment their tech and IT talent. Companies can adapt to these challenges by re-evaluating their customer data strategies and leveraging the power of AI to fill knowledge gaps until they can hire the right candidates. Both of these pivots will help IT teams lay the groundwork for success in the year ahead.

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ABOUT THE AUTHOR

Derek Slager 

Derek co-founded Amperity to create a tool that would give marketers and analysts access to accurate, consistent and comprehensive customer data. As CTO, he leads the company's product, engineering, operations and information security teams to deliver on Amperity's mission of helping people use data to serve customers. Prior to Amperity, Derek was on the founding team at Appature and held engineering leadership positions at various business and consumer-facing startups, focusing on large-scale distributed systems and security.

Published Friday, January 26, 2024 7:31 AM by David Marshall
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