The Do's and Don't of Collecting Customer Data
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Customer Data contains important information about your consumers, such as email addresses, demographics, and purchase history. The data gives you visibility into who is buying your products or services, and it helps you grow your customer base. Data is a useful tool for recognising and listening to your customers. Collecting client data may be an effective approach for businesses to show they care when done correctly. Knowing your customers better enables the business to tailor their messaging to their target audience's requirements and interests. Of course, when done in a creepy manner, it can be off-putting, which is why it's crucial to get it right.
Retargeting has made it easier to secure customers who leave your site or abandon items in their cart. According to Baymard Institute. 69.57% of online shopping carts were abandoned in 2021. Consider that for a minute, 70 out of every 100 potential clients will walk away without making a purchase. How much more money would you make if you were able to keep those sales instead of losing them? Receiving a personalised email, reminding you of the items you abandoned earlier in the day, with the message ‘’going out this Saturday and nothing to wear?’’ may cause panic and will result in more sales.
Collecting customer data has a number of key benefits but unfortunately, it has its challenges too.
Data Compliance & Regulations need to be abided by. General Data Protection Regulation (GDPR) clearly lays out the rules for processing client information. You need to ensure you’re protecting and respecting your clients. Breaching these rules and data protection laws may result in serious consequences and fines to your businesses.
Data Inaccuracy is another possible disadvantage. Some customers, for example, may use false names or email addresses to gain access to a subscription discount accessible on your website. You might end up sending promotional offers to someone who doesn't exist or isn't interested in your business.
Collecting customer data is useful for businesses and once used correctly it can produce huge benefits!
Many a time have I left items in my cart to buy when pay day arrives and many a time have I received an email to remind me about my abandoned cart of treasures - sure who doesn't do this? But also, I have previously forgotten about things I wanted to buy and have gone back to secure the goods. Just shows that collecting customer data does work - if you have the correct details for said customer. Overall, even though digital marketing efforts and customer data collection can be costly, if done properly the company will reap its rewards through sales. A good read, Dervla!
ReplyDeleteRetargeting is a great tool from a business perspective, probably not as good for some people’s bank accounts. If you get distracted when online shopping to do something else, then a reminder a couple of day’s later pops up showing all the items that were in your cart. It really emphasises that you need to focus on getting to know your customers and their behaviours so you can keep providing content that matters to them. In Rebecca’s blog post on the pro and cons of customer data in marketing she mentioned that ‘91% of buyers are more likely to purchase from brands that remember their preference’. It shows that customer data is essential to maintain.
ReplyDeleteReiterating Helen's point, getting to know your customers indeed is so important. When done right it can really lead to an enjoyable experience. When I receive mails from a certain outdoor clothing and equipment company they know what to show me and as a result they have more chance of making a sale. It's a win win. Making sure customers' data is up to date means this relevant targeting can happen, if you don't do this it can really throw a consumer off, in my opinion! So yes, that information Rebecca shared regarding 91% of buyers being more likely to purchase from a brand that remembers their preference isn't all that surprising.
ReplyDeleteGreat blog post, Dervla! It's clear from your post and the comments above that getting to know your customers is so important and when done right, creates a better experience for the customer but also benefits the business as well. I have to say I agree with Oxana - the abandoned cart emails are some of my favourite to receive (after pay day of course). It definitely adds to the customer experience and as Ciara mentioned, marking sure that customer data is up to date means that more relevant targeting like this can happen. Overall, great points Dervla - I think this will be a great resource for small businesses looking into customer data in marketing for the first time!
ReplyDeleteGreat read Dervela, it is hard to add much more here, I think the above comments have covered all the angles!
ReplyDeleteRetargeting has been a great outcome of collecting customer data. The pop up reminder as Helen mentioned proves very successful and highlights the importance of knowing your customer and trying to get that sale over the line. If we were in a shop, the shop assistant would be directly marketing to us the dress your trying on however, online shopping is a different ball game - the follow up emails with a practical message like you mentioned Dervela "going out this weekend?" draws the customer back to the website.
great post
ReplyDeletegreat tips and some excellent takeaways and food for thought.
Caitriona