Internet users produce about 2.5 quintillion bytes of data every day. Besides, around 90% of the overall data has been produced in the last few years. Analyzing customer data offers various advantages, including enriching customer experience and satisfaction. This ultimately results in retention and customer loyalty, which leads to a higher ROI. When you have your customer’s data, it is easier to predict their needs while providing them with the services they need.
This article will share some top ideas to leverage customer data to your brand’s advantage.
What is Customer Data?
Customer data or consumer data refers to demographics, behavioral, and personal data, which helps you better understand your audience and their intent. While building your business online, understanding and capturing relevant data via analytics is crucial to leverage data potential and generate viable growth.
Some examples of customer data include:
- Personal information such as name, address, phone number, email, and date of birth. Demographic information such as age, gender, income, and education level. Purchase history, including products or services bought and how much was spent.
- Web browsing history, including pages visited and products viewed.
- Interactions with customer service, including phone calls, emails, and chat transcripts.
- Social media activity, including posts, likes, and comments.
- Geographic location data.
- IP address.
- Preference data, likes, and dislikes.
- Behavioral data, such as how they interact with the company’s website and mobile apps.
What is Customer Data Analytics?
Customer data analytics is the process of collecting, analyzing, and interpreting data about customers and their behavior in order to better understand and target them. Critical business information such as demographics, purchasing habits, and interactions with a company’s products or services are necessary to track in order to serve your customers better.
The insights gained from customer data analytics can be used to improve marketing strategies, optimize pricing and product offerings, and enhance the overall customer experience. The most important customer data types are:
- Personal data: It involves information related to the customer’s profile, like email address, birth date, customer’s name, phone number, and credit card details.
- Behavioral data: It comprises the information that is collected about the actions and decisions of individuals or groups. This can include things like website clicks, purchase history, and social media activity.
- Engagement data: It includes how your customer interacts with the businesses via channels like social media, websites, and emails, including data sources that comprise email opening rate, website visits, and social media sharing.
- Attitudinal data: Attitudinal data refers to information collected about an individual’s or group’s attitudes, beliefs, opinions, and perceptions. It can measure customer satisfaction, loyalty, and brand awareness.
- Financial data: It includes data related to income and credit score.
- Social media data: It includes data from posts, likes, and followers on social media platforms
- Location data: It includes data from current locations or past location history.
- Technographic data: It includes data from the type of device or browser used to access a website.
- Firmographic data: It includes data related to the industry and size of a company.
- Transactional data: It includes data related to purchase amount, payment method, and delivery address.
Collecting this information is beneficial to understanding the customer and identifying trends and patterns in customer behavior, which can help organizations to anticipate future demand and make strategic decisions.