Why Collecting Customer Data is so Important

The importance of collecting customer data, both that of potential yet-converted customers, and practising customers; is vital for any business no matter what size. By customer data I mean names and contact details such as emails, phone numbers and addresses. A business that is able to gather each of these contact details about a person now has 3 ways to make direct contact.
 
Why is making direct contact important?
 
Making direct contact with customers puts your business ahead of competitors. You are able to go straight to the source of your revenue stream and tell them exactly why that should continue (or start) associating themselves with your business. Direct contact gives you the ability to create good will (such as sending out exclusive discounts) and keep a recurrent reminder of your business’ existence so that when people who are receiving your information are in need of a service/product you offer, they will first think of your business.
 
But how do you get people to share their data with your business?
 
There are multiple ways business can get people to share data, one of the most popular ways is through competitions – you don’t really think that company is giving away 10 iPads from the goodness of their hearts do you? When people participate in a competition they share their data with the business running the competition. These days competitions are super easy to run, with social media platforms such as Facebook having many plugins available to put on your business page. The benefit of a Facebook competition is that not only will you receive customer data, but you can make it a requirement that participants must ‘like’ your page first – giving you another direct line of communication. You could even do something as a simple as a business card draw at your premises.
 
Some businesses have gotten really sneaky at collecting data and can get people to hand it over without really knowing what they are opening themselves up for. In my area recently a company sent out a kids colouring page for Easter. The kids colour the page, the parents send the page back with their contact details, and the child goes into the draw to win some prizes. Parents wouldn’t even think about the fact they’re sharing their data…and it’s a great way to pinpoint your audience if you are targeting families.
 
Loyalty cards/programs are another way you can collect data, they can be as simply as a ’10 stamps and get a free X’ promotion, but with the catch being that customers fill out their details first.
 
“Take our quick survey and get a free X” is another way to collect customer data, and a great way to find out what your market is thinking too, especially if you have an issue or want to expand your business.
 
You could also get people to sign up for your e-newsletter directly, but this takes a bit more persuading on your part, and you have to give them a good reason to.
 
Charities are extremely reliant on customer data; they keep detailed records of those who donate so they can make contact at a later point for more donations, or keep the donator up-to-date about the campaign (which makes the donator feel appreciated and can further enhance their inclining to donate again). If you are a bit altruistic-minded you could partner your business with a charity, getting people to donate to the charity through your campaign and collecting the data people share for yourself and for the charity. This is not only a great way to collect customer data, but also a great way to position your business in a positive light.
 
As you can see there are a number of different ways to collect customer data, and while I won’t go into it here, once you have that data it is extremely important that you use it appropriately and target your audience with key messages that will get them through the door. We can help you with this.
 
Have you ever used a promotion or campaign to get customer data? What was it and did you find it effective for your business?