How to leverage customer data

In today’s data driven world, it is essential that businesses are able to incorporate customer data in order to create effective marketing strategies. Customer data refers to any information that businesses collect about their customers. This includes; demographic data (age, gender and income), behavioural data (website browsing and purchase history) and psychographic data (personality, values and interests).

By gaining a better understanding of customer needs and wants, businesses can create a more personalised, market tailored product or service. Ultimately, this boost to your marketing plan will result in higher sales and drive growth. In this article, we will understand some ways of leveraging customer data for your marketing plan.

Collection and Storage of Customer Data

It is crucial for businesses to establish strong customer data collection processes. This may be done by implementing primary data collection sources, such as customer feedback and survey pages. In addition, it is recommended that a business analyses secondary data, which often is presented in market research reports and government databases. This combination of data not only provides you with an insight into your business, but also the wider global product market.

More importantly, businesses must ensure that the data collected is stored in a safe and secure location. The most common data storage applications are CRM softwares, which refer to customer-relationship management. This often provides businesses with a place to track all communications, as well as to add other information relevant to their customer experience.

Building Customer Personas

After you have collected customer data, analyse factors to focus/identify commonalities and trends amongst customers. This information can then be used to create an ideal customer persona, which is a fictional representation of an ideal-generic customer. For example, these personas should highlight demographic trends, interests, product/service pain points and preferred communication channels. Ultimately, these customer personas allow you to tailor your marketing strategy towards your audience, which should reflect better overall results.

Predictive Analytics and AI Products

In 2023, the rise of AI has rapidly changed the way businesses use data. By analysing historical customer data to identify patterns and trends helps anticipate future customer behaviour. Many businesses using AI tools/platform such as Segment and Unify have assisted businesses in automating data analytics, making it easier to find necessary recommendations and adjustments to a marketing plan. This proactive approach can result in an improved effectiveness of your marketing plan.

Ensure Data Content Privacy and Security

With so much information regarding customers being readily available, it is crucial that your business has airtight privacy policy and security processes for customer data. This is because customer data related information is incredibly sensitive, and is often threatened by amateur hackers. Notably, 12 million Australians just had their personal data stolen from Optus. It is therefore crucial that your business is ethical in collecting and storing the data.

Personalise Marketing Communications

Customer data will often indicate the preferred means of communication with a specific customer. With so many businesses finding themselves entering multiple demographic markets, It’s essential that multiple communication channels are open. For example, Countdown has email marketing, physical pamphlet distribution and online pop ups to communicate their weekly specials. As such, Countdown would allocate the preferred communication channel to each customer according to their preferences derived from the data.

Customer statistics is a goldmine of insights that can fuel the success of digital marketing campaigns, ultimately leading to great customer satisfaction. It is essential that businesses are able to collect, utilise and store customer data(new/old) effectively. To learn more about how to leverage customer data strategy opportunities, contact Net Branding Limited – a Digital media services company.
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