CONSUMER DATA IS IT OF VALUE ?
In today’s increasingly digital world shopping, socialising and even dating is becoming old hat for customers. Online users leave a trail of digital data and smart businesses are using this information to improve customer experience. So what exactly is the value of this data?
Various phrases have been used for the value of data like “worth its weight in gold” and “the new oil”. Its use for finding out how to boost customer satisfaction and improving business performance is becoming an increasingly hot topic for companies. However businesses need to change their perception of data from material that can be plundered to an asset that should be protected and treated with respect.
If used correctly data gives organisations an opportunity to improve customer experience through targeted and personalised communications.
The first hurdle for business is to gain and keep the data. Consumers will hand over their data if they trust you. 35% of 18-34 year olds are happy to hand over their personal information in order to receive tailored future offers and communication a recent survey concluded. However only 35% of adults said that they trusted businesses to use their personal data as directed.
A mutually beneficial relationship can be achieved if businesses are up front with consumers about how they are using their data and if they obtain the necessary consent.
When online this can be a simple pop up giving information on how their data will be used. This can also give an over view of the “contract” and show terms and condition.
Obviously this will not satisfy everyone but this can be addressed by better communication.
A survey last month showed a change in consumer attitudes from guarding their personal data to a more relaxed view on giving out their information. A younger, more data savvy generation are emerging interested in what their personal data can do for them.
It is perceived by 1 in 10 younger people they will receive better customer service the more data they release to companies. 59% of 18-24 year olds said if they were given clearer explanation of why the data was wanted they would be happier to release it.
With this in mind businesses need to take a fresh look at how they treat their customers and their data and take steps to make sure that trust is not compromised. For example sensitive identifiers like birth dates can be masked which reduces the threat of data breach.
In order to target and personalise your communications a 360 degree of the customer is key. This can be achieved by taking into account all the products and services a consumer engages with.
While it may not be either gold or oil with the right safeguards in place data can become an organisation’s greatest asset in enhancing the customer experience.
If you would like to hear about the ways in which you can improve data capture from your customers please call 0844 693 0244 and speak with a member of the team or click here to send us your details and a member of the team will call you back within one hour.