Regardless of the industry, companies today collect dozens of data from their customers. While this data can be obtained intentionally or unintentionally, it is not always clear what to do with that information.
On the one hand, customer data can be used to ensure that an organization’s offerings continue to resonate with their target audience. On the other hand, it is important to remember that this data comes from real people and should be treated with care.
To help leaders use customer data wisely, 11 ukbusinessupdates.com Business Council members each share a way for companies to use collected customer data in the “right” way to better serve their customer base.
1. Focus on communicating confidentiality standards to customers
Customers will not give access to their contact information, location or browsing patterns unless they trust you. Companies must respect that trust and assure their customers of the confidentiality and security of the customer data collected. Companies must ensure this confidentiality by telling customers that they are using this data for positive research and development. – Raj Madula, Global squirrels
2. Understand customer preferences
Companies can use customer data the “right” way by analyzing it to understand their preferences. This information can be used to set up targeted marketing campaigns, improve product offerings and personalize the customer experience. However, companies must ensure that they collect and use data ethically and transparently, with customer consent, and protect it from misuse. – Nikhil Maini, Synergogy
3. Understand your target market better
Collected customer data can be used to better understand, serve and generally obsess over the target market. Whether for artificial intelligence, research or continuously adapting a product or service, data can be used to open a new location, launch a new offering and stay engaged with the target audience. Data must be used ethically to provide the best possible customer experience. – Tian Derose, EMA Inc.
4. Segment your target base
It’s actually very simple. Use the collected customer data to segment and micro-segment your customer or audience base. This leads to personalized and relevant marketing and communication, which in turn leads to deeper customer engagement, involvement and higher chances of converting leads into sales. It can even lead to upselling or cross-skilling opportunities and skyrocketing ROI. It works all the time. – Ravindr Singh, Code Consulting
5. Personalize the customer experience
An effective way for companies to use collected customer data to better serve customers is by personalizing their experiences. By analyzing customer preferences, purchase history and browsing behavior, companies can create tailored recommendations, promotions and marketing communications. This not only improves the customer’s experience with the brand, but also builds trust and loyalty. – Fabrice Testa, Maana Electric
6. Strengthen marketing campaigns
Companies know the challenges in their customer journey and can be two steps ahead of their customers. Nothing gives a customer more satisfaction than seeing a problem go away on its own. When creating marketing campaigns, knowing what customers care about is a powerful tool. Finally, don’t just contact customers when you’re selling. Connect with your customers with friendly gestures based on important milestones. – Neena Pandey, The string code
7. Reduce friction points in the customer journey
Companies can use data to improve the customer experience by reducing friction points in the customer journey. Identify where customers are encountering obstacles or difficulties and take steps to streamline processes and provide a more seamless experience. – Udi Dorner, Set Schedule
8. Keep abreast of changing circumstances
We pull a report from our customer database, create a five-question survey through Survey Monkey, and email it to all our customers. The aim of this survey is to check every six months whether the income or status of the household has not changed. In the health insurance industry, this information is vital to maintaining affordable plans and quality coverage. – Kimberly Branham-Nelson, Nelson and Associates Insurance
9. Improve customer retention
Leverage customer data to improve retention and reduce churn. Analyze behavior and purchase history to identify high-risk customers and provide personalized incentives, suggestions, and outreach. Use data for personalization to improve customer experience and build loyalty, increasing lifetime value. Secure data, obtain consent, and prioritize retention and loyalty for sustainable growth and success. – Chris Kille, Pay pilot
10. Build better relationships
Collected customer data is great for building better customer relationships and improving services. By collecting and studying data about customer preferences, interests, and past interactions, business owners can use this information to provide more personalized experiences and offerings tailored to customer needs. – Brandon Pena, 787 Coffee
11. Identify compelling stories and growth opportunities
Analyze your data to identify initial conclusions, then work with a third party to verify the correctness of your conclusions. At that point, the data should be used by the product team to inform their roadmap and by the marketing team to provide sales and account managers with data on current customer usage. This creates compelling stories for customers and prospects and reveals growth opportunities. – Ty Allen, SocialClimb