Did you know that 80% of Americans are either somewhat or very concerned about how companies use their personal data? That’s a good majority of people who may not trust your company.
This is why it is important to know how to use data the right way. When you use customer data correctly, you can improve your business. Read on to learn more.
Predict Customer Needs
Knowing how to use data can help you predict the needs of your customers. You can use your data insights to suggest products or services that you know your consumers will be interested in.
However, you have to be careful with this technique. With data analytics, you can figure out where a customer is in the buying cycle. Yet, you don’t want to make them feel like you are spying on them.
When you make the exchange, it needs to feel organic so that the customer only feels like you are interested in their needs.
One way to look at the numbers is by using predictive analytics software. With this technology, you’ll have access to behavior patterns and market trends based on what has happened in the past.
To leverage the benefits of predictive analytics, a business should create a digital experience using a loyalty program. This will help create a customized product discovery where consumers can earn rewards and maximize their experience.
After you review data, you can combine those insights with AI solutions. The use of human input can help identify the needs of consumers further.
AI solutions are often used to help a user with a purchase they are already thinking about. Instead, go a step further and suggest to them an item that they didn’t know they needed.
To do this, you can implement search engine optimization (SEO) into your strategy. With daily rank tracking, you can learn the needs of your consumers better.
Invest in the Relationship
To improve your business, you can look at data to further your relationships with your customers. It’s one thing to gain a new customer, but can you keep them? Customer retention is just as important in the business.
You can use data to create personalized attention. You can do this by, yep, you guessed it, loyalty programs!
Consumers feel a better relationship when they are getting something in return. As they are buying your products or services, they are rewarded with points.
Brands can benefit from long-term engagement from the best customers they have.
Go a step further and use a tiered loyalty program to create a better relationship. This is where you can organize customers based on how much they spend.
Not only will it benefit you to know more about your customers, but it will also help you make product recommendations to the right people. This will be reliant on purchase patterns which is why proper data evaluation is required.
Be sure not to look at only one data point. Looking at all of the data collectively will help you create a better strategy. It will also show your customers that you value them and their needs.
Build Trust
You can build trust with your consumers by effectively using their data. The first thing to consider is online data privacy policies.
Chances are, your customers have concerns about who is using their data. Maybe not your business specifically, but in general.
Why take your chances and use data the wrong way? Give your consumers a way to have control over their information use.
Customers won’t have problems sharing their data with businesses that they trust. Using data improperly can lose your customers and ruin your reputation overall.
Always be honest with your data privacy policy. Make it clear to your consumers how and why you are using their private information. Get straight to the point, never bury important details.
It is recommended to make your privacy policy as concise as possible. Your customers aren’t going to read them if they are too long.
Why is this your problem? Even if they don’t read the policy they may still be upset with how their data is used.
Here are a few ways you can keep customer data safe and build trust:
Update Your Software
One sure way to lose customer data is by installing the wrong software and not updating the right one. This is the basic first line of defense to protect customer data from cybercriminals.
A non updated software is a worthless one. The update options may seem like recommendations, but they are a necessary part of the business.
The best software to have to protect customer data is encryption software. This is how you can safeguard customer information.
Limit Access to Data
Yes, you need to understand customer data to grow your business, but not everyone at the company needs to have access to it. Give customer data to the only people who need to access it.
With fewer people involved, there is less of a chance that hackers will gain that information.
Collect the Necessities
Part of knowing how to use data includes only having the necessary data. Not only does collecting unnecessary things waste resources and energy, but it also makes your customers nervous.
If you are asking for more than an email and name, chances are, consumers are going to move onto a competitor instead. You don’t need their address or card information unless they are making a purchase.
Even when you do collect this information for a purchase, don’t keep it. You can ask your customers what they are comfortable sharing with you before taking it into your own hands.
How to Use Data to Boost Customer Relationships
To improve your business, you need to boost your relationships with your consumers. By knowing how to use data, you can do just that.
Without the proper people on your team who can analyze data, you won’t be able to use it to your advantage. Data is an intricate part of your marketing strategy. When you use it correctly, you’ll reap the benefits!
Looking for more interesting articles like this? Check out our blog for more.
