Why gathering customer data is important for your business

09 Aug Why gathering customer data is important for your business

How well do you really know your customers? If you’re simply looking at basic profile information, you probably don’t know them at all. In fact, most businesses are lacking the customer data required to create and drive effective marketing campaigns.

Reflecting on your own relationships, you know that human personalities and behaviours are both complex and layered. You couldn’t have a close relationship with someone just knowing their name and delivery address! As an organisation, collecting and storing only basic customer data is no longer enough. So what customer data do you actually need, and how do you use it to help your organisation prosper?

The following are five ways to make the most out of the information your customers provide:

  1. Use Survey Feedback Data
    What if you had the ability to find out immediate issues and fix them straight away? With surveys in place, you’ll no longer be surprised if a customer decides to leave! They’re also an excellent reminder to your customers that you’re constantly looking for ways to improve their experience with your business.
  2. Analyse the Email Metrics
    Evaluate the effectiveness of your email campaigns by looking at the click-to-open rates and unsubscribes. Keep an eye on what time and days of the week your emails are being opened. While a single metric doesn’t tell the whole value of your campaigns, spending time understanding how much content your audience reacts best to is an effective way of getting the most out of your emails.
  3. Purchase and Support History
    When attempting to predict what your customers will purchase, as well as when and how often, the answer lies in analysing each customer’s transaction history. Not only will your marketing campaigns become more relevant, you’ll also have a better understanding of what products and service to offer them in the future.
  4. Use Customer Segments in Marketing Campaigns
    You wouldn’t assume that a whole crowd of people are all after the exact same thing! The same goes for that list of customers you have. Personalise your communications by using the data you collect to target specific segments of your customer list. By tailoring the message of your emails to appeal to particular groups, you are more likely to meet their specific needs, all while increasing your relationship with them in the process.
  5. Fine Tune your Target Audience
    Once you start regularly applying the data you collected from your customers more, you can start narrowing down your target audiences. Now a smaller number of recipients doesn’t necessarily indicate less sales. You’ll actually find that increasing your focus on a smaller, more targeted audience is actually a great approach! Your campaigns will be more successful here, rather than with a wider audience that wastes your time and resources on recipients with no interest in your business.

While using customer data has a great effect on your business, it’s even more important to be aware that NOT using it can truly sabotage your relationship with your customers. So start implementing the data your customers are providing you. They’re giving it to you because they truly want you to help them! It’s the obvious, (yet sometimes) secret ingredient in moving you towards reaching your marketing goals.

At Hachiko, we truly believe that targeting narrower, more specific customer segments is essential for building relationships while maximising your return on investment. Spend your time and resources on the audience that will be the most appreciative of the messages and values you’re providing.