Ideas On How To Improve the Leverage of Customer Data
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.
Why Leverage Customer Data?
Every business is trying hard to grab the attention of its ideal target market. Leveraging customer data can provide a wealth of benefits to businesses. Customer data is crucial to set your brand value apart and create impactful experiences. Understanding customer expectations and offering them their needs can help your business thrive. It is the fuel for creating more innovative retention strategies, predicting your customer’s future behavior, and building a more intelligent acquisition for a lifetime.
Here are the top reasons why leveraging customer data is crucial for your business:
- Identifying your target market segment: Finding specific customer segments can help businesses tailor their marketing efforts to reach the most relevant audience, increasing the effectiveness of their campaigns and reducing marketing costs.
- Getting an accurate picture of your customer: Getting an accurate picture of your customers by leveraging data unification which combines data from multiple sources into a single, consistent format, so it can be easily analyzed and used to make decisions. By having data in a unified format, businesses can more easily and quickly access and analyze the information they need, without having to spend time and resources searching through multiple systems. Besides, some industries have legal requirements to store data in a certain way; unifying data can help businesses comply with regulations and avoid legal issues.
- Attracting customer attention and improving retention: After identifying your target market, it gets easier to attract and retain them for recurring purchases leading to high-valued, sustainable growth. Based on your existing customer list, you may create a better audience by targeting them through different channels and taking multiple initiatives. For better retention, creating various custom audiences, fine-tuning your onboarding process, and reactivation campaigns are helpful. It allows you to use your budget appropriately, reducing the extra costs and creating positive impacts on the performance of the campaigns to achieve your marketing goals.
- Personalizing the customer experience: Identifying customer segments allows businesses to create personalized experiences for different groups of customers, which can improve customer satisfaction and loyalty. Personalization can also help businesses stand out in a crowded marketplace and build stronger relationships with their customers.
How to Improve the Leverage of Customer Data
Here are the top ways businesses can improve customer data:
- Data governance: Establishing a data governance framework can help to ensure that data is accurate, consistent, and accessible across the organization.
- Retargeting: You can leverage programmatic advertising to personalize customer retargeting strategies. Retargeting ads are shown to people who have already expressed interest in a business’s products or services, which can lead to higher conversion rates.
- Advanced analytics: Using advanced analytics techniques such as machine learning and artificial intelligence can help businesses to uncover insights and patterns in their data that might not be immediately apparent. For instance, Finteza is a top data measurement service which includes collection, processing, and instant data mapping. It provides website owners with a wide range of features to track and analyze their website’s performance, including visitor tracking, behavior analysis, conversion tracking, and A/B testing. It also provides businesses with tools to improve their website’s performance, such as user behavior analysis, conversion optimization, and website personalization. Additionally, Finteza provides businesses with a range of security features to protect in the form of real-time reports and charts to provide the most relevant information whenever you need it.
Example of the advanced retention report: Finteza
- Data visualization: Using data visualization tools can make it easier for businesses to understand and share the insights they gain from their data. Data integration: Integrating data from multiple sources can help businesses to gain a complete understanding of their customers and operations.
- Data quality management: Implementing data quality management processes can help businesses to ensure that their data is accurate and reliable.
- Content creation: Creating dynamic content based on past customer actions increases engagement and improves conversions.
- Data privacy and security: Implementing data privacy and security measures can help businesses protect their customers’ data and ensure compliance with regulations.
- Collaboration: Encourage collaboration and cross-functional teams to work together to leverage customer data to make better decisions.
- Reviews: Review data refers to customer reviews or ratings about the products or services they use. A referral program with some bonus is an excellent tactic that goes a long way in improving customer satisfaction. Analyzing reviews can provide insight into customer feedback and opinions, informing product development, marketing efforts, and customer service improvements. Positive reviews can also improve a business’s search engine rankings, making it more likely that customers will find the business when searching online.
Real-Life Example of Customer Data in Action
One example of customer data in action is a retail store using purchase history to personalize its marketing efforts. The store tracks what items a customer has bought and uses that information to make personalized recommendations for future purchases. For example, if customers frequently buy running shoes, the store may send them promotional emails for new running shoe models or discounts on running gear. This kind of personalization can increase customer satisfaction and loyalty, as the customer feels that the store understands and caters to their specific needs and interests.
Maintaining Data Transparency is Important
Data transparency is essential because it allows individuals to understand how their personal information is collected, used, and shared by organizations. This can help to build trust and confidence in the organization and its practices, and can also help individuals to make more informed decisions about how they interact with the organization. Data transparency can also help organizations detect and prevent misuse of personal information and comply with legal and regulatory requirements.
- Customer data is crucial to improve business operations by identifying areas where refinements can be made.
- There are a lot of tools and software that help manage your relevant data, which can be helpful for you while you sit back and follow through to enhance your strategies.
- These tools and software help you achieve your business goals while managing your data at your fingertips with easy and simple steps.