Even the simplest-seeming customer data, like age, gender, and address, can tell you a lot about your customers and how you can do business more effectively to serve them better and improve your bottom line. Win-win.
Customer data can help you enhance customer experience, increase conversions, boost sales, improve customer retention, and more.
Getting the most from customer data, however, requires proper customer data management.
Better organization will lead to more efficient and effective business processes and the opportunity to gain insights that set you apart from the competition.
Customer Data Management
Customer data management can be defined as the collection, storage, organization, and protection of customer data.
Businesses typically collect customer data to provide more relevant, customized experiences for their customers and to share relevant brand information and offers.
With new businesses adding to the competition every day, your customer data is a vital resource.
With care, it will not only help you sell more to your customers but also learn about their needs so that you can improve all you do.
Customer data to consider collecting and managing includes:
- Name
- Email address
- Age
- Social media preference
- Interests
- Conversion metrics
- Order history
- Average order value
Customer data management is not only about empowering social media campaigns.
Your business exists to serve customers, so knowing them better should feed into every business decision.
Customer Data Management Tips
Customer data is inherently valuable. Businesses ask for it.
Cybercriminals want to steal it. And we all need to protect it.
Managing customer data is essential to safeguarding customers’ privacy and maintaining their trust and loyalty.
Here are eight tips to help you collect, use, and store data safely and effectively.
1. Get Consent
This is the number one tip for any business dealing with customer data.
In a world where so many devices are interconnected, accidental transmission or theft of customer data is common.
You must have customers’ permission to collect and store their data.
This is a moral and, depending on your location, a legal requirement, covered by regulations like the General Data Protection Regulation (GDPR) and the Health Insurance Portabilty and Accountability Act (HIPAA).
2. Be Transparent
Collecting data from your customers needn’t be shady.
The more transparent you are about why you want or need data and how you intend to use it, the better.
Transparency gives customers confidence and helps you build trust.
Remember to use simple language; be concise and accurate; allow customers to opt out.
3. Take Only What You Need
A key part of protecting data is to only collect what you need.
This limits the risk to your business and your customer, so think carefully about the data that is useful to you and don’t store anything else.
4. Secure the Data
It is important to have a written policy regarding customer data and how you secure it.
This is good for customers, but it’s also helpful for you.
A policy helps you know how to keep data secure and what to do if things go south, i.e. you end up facing a cyber attack or you suspect you’ve been hacked.
Data security might involve:
- Installing (and using!) a reputable firewall and virus protection software
- Passwording access to your devices using multi-factor authentication
- Physical security — such as keeping your devices securely on your person or locked away
In addition, it is a good idea to use software designed for storing and analyzing customer data.
Spreadsheets are not very efficient for customer data management, and they are prone to breaches and misuse of data.
5. Use Software
Better organization is a major reason to use software.
A dedicated, reputable customer data management system can save you time, money, and heartache.
It will connect you to your customers and help you build insights that can improve every part of your business.
Software also allows you to centralize the data so that you can access it from anywhere.
If you work with a team, it will also be able to access the data and insights. Having your data in one place makes it easier to protect and update.
Salesforce CRM, for instance, includes security features, activity tracking, compliance with regulations, and anonymized data.
You might also consider:
- Airtable
- Zendesk
- HubSpot
- Zoho CRM
- Monday
6. Learn How to Gain Insights
It is not enough to have customer data. You need to learn how to use it, too.
The main things to do are:
- Define your objectives
- Actively seek the answers in your data
If you are collecting the right data, you can segment your customers into groups and determine elements such as:
- What products or services interest your customers most
- Seasonal trends
- Purchasing patterns
- Customer satisfaction
7. Keep Your Data Up-to-Date
If your data is out of date or inaccurate, guess what happens to your insights.
You may end up making decisions based on incorrect or incomplete information, leading to potential mistakes or missed opportunities.
Pay attention to emails that bounce. Try to complete customer records with gaps — Leadar can help you verify and clean up contact information.
Maintaining accurate data is a legal requirement for GDPR, so take this seriously. It’s also good for business.
8. Backup Your Data
It would be a shame to lose all your connections due to an inopportune power outage or a cat knocking a glass of milk over your laptop.
The best backups are performed regularly with at least one backup kept offsite. Backing up to a secure cloud service can check both of these boxes.
Cloud storage providers are often targets for cybercriminals, so prioritize security over convenience, though you should be able to find both.
Conclusion
Managing customer data requires attention at every stage. Collect it ethically, protect it, make backups, and take a deep dive into what your customer details and behavior can tell you.
Data won’t do anything positive for your business if you are not using it. When you manage it properly, however, you should soon see the difference in your customer engagement and sales.
