Have you ever been conversing about a service only to have it pop up in a Facebook ad later?
At first, many customers got caught off guard by these ads. Now, we know they’re a result of Facebook’s customer data collection methods.
Plenty of other businesses are now recognizing how significant customer data is. Are you one of them? Read on to learn about why you should collect data and how to go about it.
Why Do Businesses Collect Customer Data?
If you have a business, then you know marketing is crucial. Regardless of your company’s size or niche, marketing is what brings in the customers.
So, why is data so crucial for marketing in 2019? To market your product, you need to know your audience. Data helps you get to know your customers in a way that was never possible before.
Through data collection, you can get an idea of how individuals (or groups) behave. You can make better targeted ads and streamline campaigns.
Here’s why businesses are collecting data:
- Improve marketing strategies
- To remain competitive in their field
- Customers want more targeted ads and personalization
In short, data is currency in the 21st century. If your business isn’t collecting it, then you’re likely losing customers and profits.
Types of Customer Data Collection Methods
How do businesses go about collecting customer data? There are several methods at your disposal. Here are a few:
- Ask your customers for information
- Use websites and cookies to collect data
- Use location-based data from the customer’s IP address
- Look into your customer’s social media accounts
- Email trackers
- Regularly offer surveys
- Buy customer data from data brokers
Once you have the data, it’s all about using it the right way. More businesses are letting AI and computers do the data analysis for them. Programs like the Tableau platform are bringing better insights to businesses.
You’ll always want to run your ideas through your HR department before implementation.
It’s necessary to balance a customer’s right to privacy with your company’s goals. Some states have made laws about customer data, so ensure your methods are compliant with the law.
The Future of Targeted Marketing and AI
AI tools are making it easier than ever to process customer data. AI also helps:
- Predict future customer behavior based on past actions
- Identify trends
- Deliver personalization
- Increase customer satisfaction
When paired with customer data, AI becomes a powerful tool for businesses. If you’re looking to grow, then consider looking into AI-driven analytics for your company.
Data Collection and Management
Businesses of the 21st century are changing the face of the future one customer at a time. Customer data collection methods are profitable, desirable, and attainable for most companies. Each new tidbit of data is feeding the AI of the future.
Is your company currently collecting data? Are you maximizing your profits and marketing insights by using it the right way?
If not, then it’s time to get competitive and get in the game.
Check out our other articles in our business section for more helpful tips.