Customer data: Speed dating done differently! Why customer data is worth its weight in gold
Do you really know your customers? Their wishes, expectations and preferences?
According to a study by Columbia Business School and the New York American Marketing Association (AMA for short), around a third of all marketing managers have no or insufficient data about their own customers. Among those who already collect data, around 40% say they cannot do anything with the customer data they collect.
What you can learn from your customers in just 30 seconds
The good news is that if you manage to elicit a little information (customer data) from your customers and interpret it correctly, you can secure an enormous competitive advantage.
However, in times of the General Data Protection Regulation, CRM systems and the like, it is important to know how - after all, the saying "data is the gold of the 21st century" has not become established by chance in recent years.
Why different types of customer data create an advantage
The AMA study mentioned in detail also confirmed that the future lies in the analysis and use of customer data. 100% of all top managers surveyed agree that the success of a company depends largely on decisions based on various types of customer data, as well as data from their own company and the market.
Another finding is that market orientation is the success model of the future. Those who act in a market-oriented manner first collect data from their customers, use this customer data to precisely analyze their needs and adapt their offer to the consumer accordingly.
How exactly does it work?
Big data is the magic word when talking about the marketing of the future. Explained in simple terms, this term describes the use of a huge amount of (customer) data to obtain information about customers and their behavior - always taking data protection aspects into account, of course.
This information, i.e. customer data, can then be used to tailor marketing campaigns to target groups, place personalized advertising or find the perfect time for a promotion.
Categorization of customer relationships according to various metrics
Customer master data can also be used to categorize individual relationships with customers. Classification into customer groups - for example, based on the turnover generated to date, previous customer communication or individual customer contact points - can help to improve customer service based on previous tracking data, especially in the B2B sector, but also in the B2C context.
Excursus: The customer journey
Incidentally, this is often referred to as the customer journey, i.e. the points of contact that customers have with the company throughout the entire life cycle. Not only during and after the purchase, but also beforehand in the pre-purchase and decision-making phase.
CRM customer data analysis as a "template" for successful customer service
The more customer data, the better, or as Jeff Bezos, founder of Amazon, describes it: "We never throw away data". However, it should also be mentioned here that all of this must always take data protection aspects into account - otherwise the use of your customer data can quickly backfire.
The idea behind this: Every customer must be considered individually, both in terms of customer loyalty and purchasing behavior & co.
But: Not every decision always has to be based on customer master data
The possibilities for using valuable customer data in your own company are almost endless and even if the technology is still in its infancy, most companies can achieve a significant improvement in the purchasing behavior of their customers with just a little information.
Example: Customer loyalty in the hospitality industry
The following example illustrates how you can easily benefit as a restaurant owner with a customer loyalty program and easily divide your customers into different user groups. Your customers log in to your mobile app and are greeted with a box to opt-in if they want to help personalize the customer experience and get better offers.
Targeted use of the customer data obtained
The survey on purchasing behavior can include whether visits are spontaneous or occasional, whether family or friends come along, what is expected of the service, which products are particularly tasty, etc. Based on the survey and the customer data obtained, the customer data can be enriched in a targeted manner. In this way, different customer profiles can be created and assigned to different user groups. This can be used to launch personalized campaigns or even discover a new business model.
Are you still just collecting or are you already analyzing?
This is a simple example of how customer loyalty programs can be used to collect customer data and what it can be used for. 30 seconds of speed dating with your customer and you will notice the difference. Pioneers such as Amazon and Google are already well on their way to the data-supported, CRM-driven future and are busy collecting customer data. Are you too?
