Benefits and Challenges of using Customer Data for marketing
The usage of clients’ data can be very helpful to deliver personalized experience and increase the reach of your small business.
According to a Accenture report, consumers' demand for personalization is higher than ever before. .
The data generated can be pulled out from smart devices , social media and other sources. Through the client’s data, companies can use them to gain insights into consumer behavior and offer better customer service or the ideal product .
Some companies focus on the database process of all the information acquired and break them down bringing actionable ideas in order to levarage the consumer’s experience, audience segmentation, loyalty programs creation, feedback collection, test new ideas and create a powerful brand awareness.
From collecting relevant data, such as customer names, lifetime value and spending habits, it enables you to learn more about your audience. The information you collect can also be used to create target markets for specific products and services offered in-store and online.
These insights can also offer a strong foundation for your website content and other materials designed to inform, educate and engage your audience.
There are some companies like Sephora, Macy's that gather customer data through their websites and apps allowing them to send relevant offers by SMS and email.
According to some research, 91% of consumers are more likely to purchase from brands that remember their preferences and make relevant offers,
Despite the benefits, there are also some challenges like data decay since your customers could change their email addresses, switch careers or move to a different city. If that happens and you're not aware of it, your marketing budget is wasted.
Another factor is data inaccuracy. For example, some clients may share fake names or email addresses to access a product. In such scenarios, you may end up sending promotional offers to someone who doesn't exist or isn't interested in your brand.
Summing up, the usage of clients’ data is a good tool to promote engagement with your audience and create brand awareness, however you have to act quickly enough to capture customer’s interests and provide what they need when they need it.
Hi Natalia,
ReplyDeleteThank you for your content on the benefits and challenges of using consumer data. You mentioned some very interesting facts in relation to data and how consumers now expect certain things form companies. It is very interesting to think that everyday we produce huge amounts of data, of every kind, so filtering and organising it all can be a daunting task. Luckily there are digital marketers to filter out through all this data and put it to good use.
I liked the examples you gave of effective customer data usage and that customers are more inclined to companies that remember them. I definitively am one of those, I would expect to get suggestions on similar products I would like and also gain discounts.
Thank you for sharing your content on customer data.
Hi Natalia,
ReplyDeletethank you for sharing this post on the benefits and the challenges of using customer data for marketing.
I agree that are many challenges nowadays especially when it comes GDPR and handling customer data. A business needs to make sure to have a robust security system in place and it is really important to share with your audience all the steps that you are taken to retain their data safely.
i believe that the example of Sephora is really pertinent to the subject. I am a customer of Sephora myself and I am happy to be part of their loyalty programme and to share my data with them. This is because of the benefits I receive, such as a present or discount on my birthday, free samples based on my preferences and invitation to exclusive events.
I believe businesses should follow their examples in order to retain their audience!
Thank you for sharing this!
Paola
Hi Natalia,
ReplyDeleteI found very interesting your post. It is extremely important that companies be aware and understand properly how to manage their customer data, as everyday more and more people are connected online the most effective way to find your audience and create a good relationship with your potential customers is through the knowledge generated from the Data collection. As you mentioned, companies also need to be careful when collecting this data and keep it updated to ensure that their digital marketing campaign, which depends strictly on knowing customers behaviour, will be accurate. Customer Data, if well managed, is definitely a incredible solution for businesses succeed online.
Thank you for sharing your content.
Osnei Pereira
Hi Natalia
ReplyDeletethank you for sharing this very interesting post.
I’m a spa owner and I have been looking for effective marketing practices to boost my business goals. I love the part when you mentioned about the usage of clients’ data can be very helpful to deliver personalized experience and increase the reach of your small business. I totally agree about the information you collect can also be used to create target markets for specific products and services offered in-store and online. That is my main goal and CRM will be very useful to help me achieve it. Definitely I will try to apply this concept on my business. It will be a way to engagement with my audience and create brand awareness. It is quite challenging find marketing content tailored for small business. I really appreciate your post.
Thanks again!