As we can see from such companies as Uber, the task of gathering and managing customer data should be taken seriously. In spite of the fact that the information gathered can offer a lot of value to an organization, the process of gathering it should be done in a suitable manner. This article is going to provide you with the best practices that you can use to better your customer data management.
From one research, the average cost of a data breach would be around 4 million dollars. It is estimated that companies of small and medium sizes often suffer from average losses of about 120 thousand dollars for each data breach.
When you collect personal data of your customers, from calls to addresses and so on, there is a need to set up a plan in order to secure that information. This will help you build customer trust as well as saving your company from unexpected problems.
In order to secure your customer data, you can make an investment into a CRM, a backup system and a training for your staff about customer data.
In case you are skeptical about the need for these solutions, you can think of what would happen if your company has a security breach. It always results in a drop in customer trust and of course, the profit. In the Europe, there is also a threat of being fined. Making an investment into the security of data is a long-term investment, which is worth spending.
Collect information in an ethical manner
Facebook ran into problem two years ago as the data company Cambridge Analytica were able to collected the information of over 50 million Facebook users at that time without their knowledge. People were angry and asked for an investigation, which made the confidence in Facebook decreased a lot.
Trust is a big factor of setting up relationships with your leads and your customers and it could have big implications for customer loyalty as well as brand reputation. The best method to build trust is to be clear about the policies on data collection. You should let your clients know what data you will gather and if customers suppose that you have done wrongly, you may lose their trust and confidence in your business.
In order to gain customer data ethically, you had better offer a survey in which there are clear questions for more ideas. Also, you need let clients choose to share valuable information. It is a must that you should prioritize your clients’ privacy at all times. Customers will value your transparency, in return.
Make a decision for what you truly need
Your company could be overwhelmed with too much data when it comes to information and decision making. Attackers may be able to access your data that you should not have. There is customer data which is not often used. It is estimated that about 60 percent to 73 percent of data in a company is not used for analytics.
To determine what data to collect, it may take a lot of time and this is not an easy task. The data you collect from your client should come with a goal. You had better decide what information you actually need. To achieve this, you should ask such questions as how the data aligns with your enterprise goals, how it will be analyzed and how it can make a contribution to the client experience.
In case you are gathering information about customers through utilizing marketing automation software, you should take the data you actually need into consideration. For instance, you must be sure whether you need both email address and phone number or just one.
Otherwise you can utilize a systematic approach in order to collect data, which can help you reduce unnecessary collection. If you get only the data that your company needs, you will then be capable of streamlining the processes.
Making an investment into customer database software
A spreadsheet used to be the most effective method to store customer data but now it is not. Businesses taking data seriously will save their client information in a safe database, which is known as customer relationship management tool which is compliant with GDPR. These tools are made to help organizations collect important data in a secure and convenient manner. What is more, they can also offer segmented customer insights based on the data by which the company can identify chances for advancement.
Taking Expensify as an example, this financial service company providing online expense management services has used Zendesk Sell to store their clients’ information and make all kinds of data meaningful. Adopting a customer relationship management strategy also helps save your data in one place, control customer interactions and get a unified view of the customer.
Thanks to Zendesk Sell, users are able to customize different data entry fields in order to get a right snapshot of the data needed the most. It is a tool prioritizing data ownership and other benefits like arranging data, balancing, automating daily tasks as well as gaining more insights from data via analytics. Last but not least, for beginners, Zendesk Sell also offers a free trial.
In spite of the fact that losing data is highly possible, 58 percent of small businesses are not making any preparation for data loss. This figure is even terrible as they may lose their data within just 6 months. Now we need data backup and recovery plan.
You should adopt a good backup plan for all your client data in case there may be a problem with them. if you are careful enough, you will be able to save both your clients and your company.
When setting up a data backup plan, you should ask such questions as what your budget is, what type of data backup plan you need and when you are going to store your backups.