Why Do Marketers Collect Data?

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Consumers expect personalized communications and suggestions when you collect data. You are more likely to close sales by pitching customers the products they’re most likely to buy if you know what kinds of products/services they’re most interested in.

Collecting customer data is key to almost any marketing strategy. Without data, you’re marketing blindly, merely hoping to reach your target audience.

Through various sources, they gather prosperous data. Marketers love such data.

But the surprising truth is that a large percentage of us are ignoring the most valuable customer data sources available.

Many businesses already collect data digitally, but don’t know how to leverage what they have. If data collection isn’t a priority, it’s time to switch gears.

What Is Data Collection?

Technically, customer data collection is gathering quantitative and qualitative information about customers by leveraging various data collection methods. 

From a strategic perspective, data collection helps companies understand customer sentiments towards their products and services.

Acquiring data from disparate primary and secondary data sources drives better decision-making.

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Why Is Collecting Data Important?

Customer data is the most critical key to your marketing strategy. Without data, you’re marketing blindly, hoping to reach your target audience or persona. 

Many businesses that collect data don’t know what to do with it and only pull it from a single source.

Social media, email sign-ups, site usage, purchases, and feedback forms all offer valuable insight into whom you’re marketing to.

Collecting data allows you to store and analyze important information about your existing and potential customers.

Data collection improves your consumer database.

According to a study by Digitalist Magazine, 65% of customers were happy to share their information in exchange for more targeted marketing.

Almost 67% were willing to share their data if they received some benefit, such as discounts. 

When customers are willing to provide personal data for marketing purposes, why not collect it and use it for more targeted, strategic marketing?

Collecting this information can also save your company money by building a database of customers for future marketing and retargeting efforts.

Additionally, customer data allows marketers to identify products or services that are poor performers, and helps them create processes to reduce the unnecessary effort of building these products or services that have no demand.

You can improve your customer experience by knowing this background information.

The types of data collected by companies can include information on a fitness watch, a user’s IP address, past search queries, a user’s location, and even the ads that someone clicks on online.

No matter the industry you work within, the demographics of your target market, or the kinds of goods/services you provide, you know that collecting data about your customers helps you improve nearly every aspect of your business.

Collecting Customer Data In-Person vs. Digitally

As opposed to in-person data collection, collecting data digitally allows for much larger sample sizes and improves the reliability of the data.

It costs less and is faster than in-person data, and it removes any potential bias or human error from the data collected.

How To Use Collected Data

Traditionally, questions such as why to collect customer data and how to collect customer data, bothered marketers and companies alike.

However, now the focus is on leveraging the power of automation and artificial intelligence to collect and exploit every single data source to glean actionable insights.

Once collected, companies can analyze the data to gain valuable insights and trends.

You can use the information to build segmented audience profiles for future marketing efforts, making your marketing spend more efficient and effective.

Additionally, importing a list into social platforms gives you the tools you need to build custom and look-a-like audiences to reach the most qualified segment.

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Subject Access Requests (SARs)

A report by Factual has provided some interesting insight into customer concerns and opinions about data collection.

When it comes to privacy and data collection concerns, younger people are far less concerned about data privacy than older consumers.

This could be because they grew up surrounded by technology. So, they are less suspicious of such tactics in general.

However, the actual people companies market to must be accounted for. And data suggests that many people do not want to share their location data for marketing purposes.

SARs is a protected right for customers, allowing them to ask any company if they are storing or using their data.

Customers can ask for copies of the data collection verbally or in writing.

Where Do Customers Draw The Line?

Eighty percent of consumers are comfortable with brands using data they share directly. This is a solid majority.

However, only 19% are comfortable with brands using the information they have inferred from other data gathered.

Besides collecting information for business purposes, companies that sell personal information and additional data to third-party sources have become commonplace.

Once captured, this information is regularly changing hands in a data marketplace of its own.

Reaching Your Target Audience

Your target audience isn’t on every channel. You might already know that a younger audience would be easier to reach on social media or streaming media.

And that you’re more likely to attract an older audience via email, traditional ads, and maybe one or two social networks. But consumer data collection can get you much further than this.

Collect data about where your customers are coming from and analyze it. The more you know your customers, the easier reaching them.

Additionally, the more you know about the kinds of products/services your customers are interested in, the more likely you are to pitch them products they’re the most likely to buy and close the sale.

You can segment your marketing strategies according to consumers who have similar interests, allow for the autocompletion of payment methods and other forms on your website, and even understand the devices that customers prefer to use when accessing your website.

Significant Personalization

Data collection allows you to understand what your customers expect in terms of personalization.

When you have identified customers with similar interests, you can easily devise segmentation strategies, helping you to pitch them more effectively and shorten your sales cycle.

Roughly 63% of consumers say that they expect personalization from the companies they work with regarding marketing and product suggestions, order confirmations, and any sort of communication between themselves and your business.

Data gathering allows you to meet consumer expectations regarding personalized communications and suggestions.

Additionally, the more you know about the kinds of products/services your customers are interested in, the more likely you are to pitch them products they’re the most likely to buy and close the sale.

The Customer Experience Matrix

The customer experience matrix will help you determine the extent of the company’s interaction with the customers and the effectiveness of the data.

These things will help you understand the kind of customer experience a business offers to its customers.

For many companies, consumer data offers a way to understand better and meet their customers’ demands.

By analyzing customer behavior and vast troves of reviews and feedback, companies can nimbly modify their digital presence, goods, or services to suit the current marketplace better.

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Shaping Your Marketing Campaigns

Data will tell you which of your marketing campaigns and tactics your target market responds to the most and prefers, so that you can create more effective and targeted advertisements in the future.

The data will help segment the customers based on several factors like region, price range, and others. The companies can define marketing strategies based on this data.

Such a marketing campaign will be more effective and reach the target audience.

You’ll learn more about your average buyer persona, their preferred social media platforms, which products they’re the most interested in, etc.

Hop-On The Kennected Train

According to HubSpot, 61% of companies name their top marketing challenge is generating traffic and leads.

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