Managing customer data has been mentioned in a lot of conversations as this task plays an important role in businesses. Customer data is now considered to be the most valuable resource of the world and is often called “the oil of the digital era’. This value should be treated and secured. If not, there would be a lot of serious problems coming.
Taking Uber as an example, this company ran into a data breach four years ago as hackers had access its private data collected from about 57 million people, including license numbers of drivers. To resolve this problem, Uber threw away 148 million dollars. What is more, it also resulted in big damage to the reputation of the company.
Such other companies as Yahoo, eBay and Equifax have also suffered from similar issues. The major reason for this problem is poor customer data management.
A right data collection and management plays an important role to make sure that your company can avoid data breach problems and the loss of your client trust. What is more, a good customer data management can be useful for your business in a long term. Before adopting a customer data management strategy, you must know what customer data management is and what types of customer data you can gather for your company.
The definition of customer data management
In general, customer data management is an activity of gathering ethically, storing safely and controlling a database of client information in order to improve an organization’s online services, processes as well as products. The value of a good customer data management may be listed as higher sales, increased customer retention, better marketing campaigns, stronger customer relationships and so on. Before you start to gather customer information, it is important that you should learn different types of data in order to get the most suitable information you need.
Different kinds of data collection
A wide variety of data collection can be taken advantage in order to achieve various business and marketing goals. Let’s take a look at some kinds of customer data as follows.
The first one is top-of-funnel customer data, which would ask for simple information such as email, names or both. However, you may run into obtaining unqualified or irrelevant leads by soliciting such general information.
In other words, this kind of data collection would be valuable for testing the efficiency of email campaigns as well as downloadable resources like ebooks. You can carry out the task with inline, embedded web page buttons and pop-up forms. In terms of embedded web page buttons, this kind of data collection is often utilized to motivate website visitors in order to finish such easy actions as logging in for a free trial, subscribing to a newsletter, downloading an ebook, a template, talking to a representative and so on.
As you have already known, many in-line call to action buttons will ask users to complete one field of customer data and it is often email that is required.
For pop-up forms, this is a little bit more aggressive method of customer data gathering. Lead-generation forms can be automated in order to pop up on a web page based on time on page, exit and entrance. For instance, it will only pop up if the visitor has been on that page for at least one minute or when he or she starts leaving a web page by tapping on the X button in their browser.
Another kind of data collection is current customer data. Currently, current clients have experienced your product or service and they have known what is working and what is not good and why they love your product or whether they want the product to be developed. The information they give may help you better your services or products by creating new ones and offering better customer service.
This is a kind of valuable data. Its results will result in more revenue, higher customer retention and a better understanding of your target audience. In order to get valuable current customer data, you can use these following tools.
Firstly, it is the questionnaires. In order to make the most out of a questionnaire, you should avoid asking yes or no questions. Instead, you should offer questions requiring longer answers so as to receive unique insight.
For instance, you can take a customer relationship management as an example. You have recently introduced an update that adjusted the layout of the dashboard. You can make a questionnaire in order to get feedback from current customers about whether they love your change and why. The questions would be what do you like about… or what do you want to be different.
The feedback you get will provide valuable insight into what clients like or not about your product and the reasons. You can take advantage of this data in order to make advancements to your products or services. As a result, there will be a higher level in terms of customer retention and profit.
Another strategy is follow-up phone calls or feedback forms. This data collection takes place after the event. More precisely, after your client has interacted with your brand or your product, and you would like to know whether that interaction provides good results or not. You can carry out this step. Examples of some post-event follow-ups can include: after a customer support ticket has been closed, after they completes a trial period or a purchase or after they have used that product for a specific period of time and so on. Phone calls and feedback forms can be rather brief so you should take your client into consideration. You may want to get feedback from a busy customer if you ask only yes or no questions or scaling ones.
Also, if the customer data you gather is negative, you may hope to follow up with that customer later to seek for more information. No matter how you gather customer data, you should be transparent enough.