Benefits and Challenges of Using customer Data in Marketing..Ivan Biocic
These days there are many software, programs and
algorithms that focus only on recording data and collecting as much information
as possible from any internet activity. Institutions like Google, Microsoft and
Meta(Facebook) are among world leaders in collecting digital data. There are
many benefits of extensive customer data, but it can also bring challenges and
possible risks if not managed right. Every such, recorded activity should
follow GDPR rules, from the beginning to the end. Data that is collected and
analysed can be used to upgrade existing customer profiles and create new ones,
also to determine satisfaction levels, customer needs and demands and many
more.
With extensive up-to-date customer data, marketers
can have a better view of the whole buying process, starting from problem
recognition, information search, purchase decision to purchase, and ending with
a post-purchase evaluation.
Challenges that could occur while collecting consumer data could be in a
form of false and incorrect information provided or wrongly recorded. So it is
important to run longer campaigns and constantly track activity so its data is
constantly updated and true. Incorrect or bad data can ruin the whole campaign,
and if potential errors are not noticed on time(before the generation of data)
it can be costly as well.
With proper customer data management, there are much more benefits than
risks and indeed customer data plays important role in marketing. The main goal
of any profitable organisation is recognition and market placement but
ultimately the goal is of course revenue - profit. And in today's information
age, information is gold and it can be used for businesses advantage as well as
in customers in some ways. Businesses can target their customers more precisely,
and provide them with offers that will suit their needs, or even with
personalised offers specifically made for them. All of this can increase
customer satisfaction levels, increase the company's brand awareness and
generate profit. While making stronger business and customer bonds.
Hey Ivan, just finished reading your blog on customer data for marketing, the inherent benefits as well as challenges. I liked the way you made the comparison as in todays world how important is the date throughout the customer journey from the start to finish and further on as long as the relationship continuous. With the benefits come the challenges, from safety to adherence to the rules of the jurisdiction, at the same time making sure that data is collected in correct manner and it is accurate, otherwise the decision made will not be accurate. Again, I would agree data is valuable asset and if used properly gives a company a competitive edge like nothing else. Well done Ivan... Comment By- Sultan Nazir
ReplyDeletegreat post
ReplyDeletegreat tips and some excellent takeaways and food for thought.
Caitriona
Hey Ivan, well said. Information is gold and many people are interested to it. A new technology that I have found while researching the data collection strategy is the use of hashed emails. The hashing process is simply the action of encoding normal email addresses making them unrecognisable from a privacy standpoint but giving them a code that can identify them in an anonymus way. These hashed emails can then be used to target users with digital marketing campaigns and represent pieces of data very similar to the cookies. This data can be used to deliver relevant content and target the right users, in the right place, at the right time. Pretty impressive if you ask me!
ReplyDeleteMany thanks- Rory Dignam
Hey Ivan! When we talk about data, the first thing that comes to mind is a large amount of information. And you are right in saying that the success of the company will depend on the correct processing of this information, but we may also encounter problems that are connected with the provision of false or incorrect information. Therefore, it is long-term campaigns that give a good result, which help to collect accurate information, focus on customers and their needs. I agree with you that customer satisfaction is directly related to brand awareness, which entails company profits. It's a great blog, thank you!
ReplyDeleteKsenija Karpezo
Hi Ivan, It is great to list off large organisations who currently control huge volumes of businesses data, Google, Microsoft and Facebook (meta). As we have seen Facebook has had its challenges legally in the States and in Europe on how they collect and store data and whether their customers were aware the volume of data they were collecting on them unknown to the customer. So storing appropriate data when it comes to GDPR is essential that it is managed according to the law in the continent the data center is located. If we think of the worth of these three businesses it really emphasises how much data is worth and as some expert say Data is the new Oil. I liked your blog it got me thinking about how much data is worth to these three companies. Tks Ivan for a great blog. Diane
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