Customers are at the heart of every business. Every business interaction revolves around the customer experience.
In order to create the ideal product or service, you need to have an understanding of your customers. This includes collecting customer data that will give you an inside look as to who is interacting with your business.
However, collecting customer data can be tricky to navigate. You want to ensure that the methods you use are worthwhile and legal. Keep reading to learn how to collect customer data profitably and legally.
Benefits of Customer Data Collection
There are three major benefits of collecting customer data.
- Database. The larger your database, the more information you have to analyze and interpret about your customers. With customer data, you can get a clear picture of just who your customers are and how your product or service works for them.
- Marketing strategies. Collecting customer data provides you with a better understanding of the market, allowing you to create more effective marketing strategies. Target customers based on demographics like location, gender, age, and more.
- Customer experience. Using customer data, you can design an optimal customer experience. Are your customers almost solely finding your product on a mobile app? Create a mobile-friendly platform that exceeds your customers’ expectations and watch your business thrive.
Convinced yet? Great! Then let’s take a look at the best customer data collection methods.
How to Collect Customer Data
Collecting customer data is an integral part of business. Without it, businesses may not be targeting the correct consumers and their product or service may go unused. Many customer data collection methods have emerged from businesses’ need for this information. As you create your collection strategy, consider trying out the following methods.
Surveys are an excellent way to collect voluntary information from your customers. In addition to answering questions about themselves in regard to your product or service, you can also use surveys to receive feedback. Make sure your surveys contain optional questions so customers don’t feel pressured to provide information they may not feel comfortable sharing.
Calling your customers is a great way to collect data and create a connection. Use this method to learn more about how your customers are using your product or service. It allows them to share how they interact with your business and the expectations they have for these interactions. Your customers can also opt not to answer the phone call to protect their privacy.
Sending a personalized email out to your customers is another method for collecting data. These emails may include surveys, useful ads or resources, or a general newsletter about your company. By interacting with these emails, you can learn a bit more about what interests your customers and how you can improve these emails for increased interaction.
Chatbots or other direct messaging systems are a real-time method for collecting customer data. Customers can ask questions, share feedback, or provide additional information instantly through a messaging platform. Be mindful that there are laws against certain practices when it comes to sending text messages to customers. They must opt into these messages and have the option to stop contact should they choose.
Social media platforms are widely used by customers of every company. Whether your target customer is an avid Facebook user or spends a lot of time checking Instagram stories, you can collect quite a bit of data from social media. By monitoring elements such as likes or comments on your own posts, you can learn just who your regular consumers are.
In addition, social media often collects a variety of voluntary data from users. Depending on the platform, you may have access to this data. Keep in mind, however, that not all the information collected on social media is available to businesses. Double-check what of this collected data is legal for you to obtain.
Have you ever clicked on a website that had a bar asking you to accept or deny something? That something is cookies. These website cookies are used to collect customer data. They monitor a user’s time spent on your website so you can analyze their habits. When implementing cookies on your website, you’ll want to allow users to accept, deny, or customize what information they share with you.
The final customer data collection method revolves around location. While location data only shares geographic information about your customer, this information can help you better create targeted ads or understand how a customer is using your product or service. You can collect location data through website cookies, social media, Google Analytics, and more. Just make sure you be transparent about collecting this information, as some customers may be unwilling to share.
Best Practices for Collecting Customer Data
When it comes to customer data collection, there are a few best practices to follow to ensure that you are getting the information you need without violating privacy.
Keep It Simple
Only collect what’s necessary. There’s no need to pester your customers or overload your database with information you don’t need. Spend some time analyzing what customer information is necessary for business and only utilize methods that collect that specific data.
The last thing you’ll want to do is send out that dreaded email informing customers that their data has been breached. No matter what kind of customer data you are collecting, invest in a high-level security system to avoid stolen information.
Technology is a beneficial tool for collecting and storing customer data. It’s even better when you can collect and store data all on one platform. Avoid switching back and forth between data platforms by investing in a tool like Threads. Our business communication software allows you to collect, store, and easily access customer data in one convenient location. Integrate additional tools such as HubSpot or record and transcribe your phone calls so you never miss out on pertinent customer data again.
Back Up Collected Data
Regularly back up your customer data. If your system ever malfunctions, a data backup will allow you to restore customer information without having to contact them all over again. Schedule weekly or monthly system backups into your calendar so you never have to lose months’ worth of data.
Manage Customer Data with Threads
From call transcription to a shared inbox, Threads has all the tools you’ll need to collect, store, and manage customer data. Share information quickly with colleagues or integrate HubSpot to integrate emails and automatically input data. As you continue to collect customer data, Threads can analyze and sort data so repeat customers are managed easily.
Contact Threads today to learn more about our business communication tool and how we can help you improve your business using customer data!