BENEFITS AND CHALLENGES OF USING CUSTOMER DATA FOR MARKETING

BENEFITS AND CHALLENGES OF USING CUSTOMER DATA FOR MARKETING

We will take a closer look at why customer data or firsthand information obtained through customers is important in Marketing. 

In today’s digital world, it seems that there is no pause and the world is constantly active, as such, a vast amount of information is gathered every day and every minute. Its more than 2.5 quintillion bytes of data is generated every day and will only get more massive. It can be our regular social media activities, queries or purchase history through the websites, an unattainable amount of data is obtained regularly. (Rob FitzGerald)

The essence of obtaining customer data is to make the type of decisions that improve overall company growth through elevating the customer experience, such as customer retention programs, product suggestions and more. 

There are 4 types of customer data significantly strengthening marketing strategies. 

To personalize communication and to identify buyer personas, Identity Data is obtained from the consumer. The second type of data is Descriptive, which helps the marketers to understand customer segments and analyze buying habits of the customer. To understand which channel generates the most conversations and is relevant is received through general patterns customer performs when engaging with our business is through Behavioral data. When it comes to acquiring additional information like sentiment analysis, preference data Qualitative data is used to understand how a customer feels about the product, the services that we offer and our company. 

Ensuring the effectiveness of the data-driven strategy, it is important to track the right metrics and measure it at multiple levels. To prevent conflicting records it is also important to maintain centralized data hygiene across all the teams that lead to sustaining high-quality data. The data that holds the most value is the information that is received directly from the customers themselves, to develop the most effective strategies customer segmentation and right data resource platform helps marketers to personalize the content. These are a few challenges that every marketer faces.

References:

LeadBoxer. (2020). Improve Your Marketing With Customer Data. [online] Available at: https://www.leadboxer.com/blog/customer-data/ [Accessed 19 Feb. 2020].

 Connext Digital. (2020). 4 Types of Customer Data to Enhance Your Marketing Campaigns. [online] Available at: https://connextdigital.com/types-customer-data-enhance-marketing-campaigns-infographic/ [Accessed 19 Feb. 2020].