Benefits and challenges of using customer data for Marketing

Customer data is the communication between the marketer and the customer which includes phone calls, messages, emails, promotional letters, magazines, websites and many more. The main goal is to collect the data accurately and analyze it to make future business decisions and attract customers. Many companies collect and store customer data but don’t effectively use data for their business needs.

There are also equal challenges in interpreting data obtained from the customers and the benefits of using the customer data effectively in marketing.

Benefits of collecting customer data

Source: Retailnext

Catering for customer interests and needs
It’s all about the customer's voice, the more you hear, the more you gain. It’s a way of saying we care. Customer data collection leads to an understanding of customer needs and interests. Interpretation of customer data positions a company to present the right product to the right customer and increases the business of an organization.

Better product development

The organization can develop better products based on consumer feedback. Artificial intelligence and technology make it easy to interpret the data from larger customer databases.

Expansion of the market

The simple email communication to the new marketing trends the marketing has come a long way. Data-driven advertising will ensure the message reaches every person intended because people believe in testimonies rather than a simple ad.

Challenges in using consumer data

Investments

One of the primary drawbacks of using customer data is the marketing costs. It requires software, hardware and third-party auditors for data collection.

Privacy disclosure

To secure the data of the customer is the key. The marketers need to convey their intention of data usage. The data should not be exploited. Taking preventive measures to avoid data exploration and maintaining accountability with the customers.

Having quality data and skilled people along with technology can ideally satisfy the customer and can increase productivity.

References:

1. Using Customer Data for Marketing: The Good, Bad & Ugly (2018) Aberdeen. Available at: https://www.aberdeen.com/cmo-essentials/good-bad-ugly-using-customer-data-for-marketing/ (Accessed: February 17, 2020).
2. Data-Driven Marketing: Benefits, Challenges, And Examples (2020) Infotanks Media. Available at: https://www.infotanksmedia.com/blog/data-driven-marketing-benefits-challenges-and-examples/ (Accessed: February 17, 2020).
3. Sharma, B. (2019) How to Collect Customer Data and Improve Shopper Experience, RetailNext. Available at: https://retailnext.net/en/blog/how-to-collect-customer-data-and-improve-shopper-experience/ (Accessed: February 24, 2020).