The 5 most important things to do to manage a business's data

When it comes to building a useful service for customers and clients, companies need to focus on data. But how does customer data management work in practice?

In essence, customer data management is the process of bringing together consumer information from a variety of sources. It allows users to create clear profiles on specific customers and target audience members.

This data collection and analysis has become critical in managing business growth and operations planning. Ultimately, it can help companies understand and appreciate the needs of their customers and offer meaningful personalization of products and services. Therefore, effective data monitoring could help improve customer satisfaction and increase revenue.

3 Types of customer data collection

It is important to consider how companies and analysts circumvent customer data management. To create an effective customer profile and securely manage personal information, a specialist or analyst team may need to consider a variety of practices.

Companies may obtain and use data through the way their customers use websites and online forms. Of course, because of data protection laws around the world, such as the General Data Protection Regulation, companies must now be explicit when advising customers that their data is being collected.

To create leading customer databases and marketing data, it is important to consider various options. Here are some examples of data collection already in use today-

1. Top-of-funnel data

This refers to low consequence and easily attainable information, such as e-mails and names. Although this top-of-funnel data is susceptible to irrelevant leads and false information, it is effective when testing the success of email marketing campaigns. Companies can collect this information using the following tactics-

Web page buttons-Buttons embedded or inline on company Web sites may ask visitors to provide this information in exchange for free product trials, downloadable digital resources, or product demos.

Pop-up forms-Companies can use custom triggers (time spent on page, exit initiated, first access to Web site) to automate lead generation forms to be displayed on a Web page.

2. Bottom-of Funnel Data

Bottom-of-Funnel are visitors who have already expressed interest in purchasing a product or service, which means they are usually willing to provide more detailed personal information to access resources and learn more about what the company has to offer them.

In order to get the most value from this method of data collection, companies can design landing page forms dedicated to promoting a particular product or service. Data fields can also be customized by the company to collect the desired and most appropriate customer information.

3. Existing customer data.

Refers to consumers who have already purchased a product or service from the company. These existing customers can help provide detailed information on how the company can improve their existing products and customer service.

This high-value data can also inform companies about gaps in their existing product range and help create ideas for new items. The collection and use of this information can result in increased customer loyalty and revenue.

Questionnaires - Companies can create questionnaire forms to obtain feedback from customers. To get the most value from this method, ask questions that invite lengthy responses and avoid yes or no questions.

Follow-up calls-This data can be collected after the purchase or after the consumer has interacted with the brand. These conversations can be brief and may include yes-or-no questions or ratings on 1-10.

5 Best Practices for.

managing customer data The above examples provide a snapshot of the simplest and most non-intrusive ways to obtain and create reliable customer data profiles. However, after collecting this information, companies must carefully manage this sensitive information to protect customer identities and consumer trust.

Here are a handful of data management best practices modern companies should consider-

1. Make security a priority

studies show that a data breach costs an average of $3.86 million, while small and medium-sized businesses lose an average of $120,000 for each time a data breach occurs. Ensuring the security of customer data helps companies avoid these costs and build consumer trust. To protect personal information, companies can invest in backup systems and customer data training for staff members.

2. Practice Ethical Data Collection.

Trust and fundamental to customer loyalty and retention, and the best way for companies to maintain trust while collecting data and to remain transparent and honest. Companies can ethically collect consumer information by providing simple surveys, allowing customers to choose what information they wish to share, and drafting a clear privacy policy.

3. Collect only the data you need

Approximately 60%-73% of the data within a company remains completely unused during the analytics process. This data saturation can overwhelm companies and distract management from efficient decision making.

Before collecting consumer insights, companies must first decide what information to prioritize, how the data aligns with business objectives, how the information will be analyzed, and how this information will help improve the business.

4. Backup All

data recovery and backup plans are essential for businesses of all sizes. However, 58 percent of small and medium-sized businesses are not equipped to deal with data loss scenarios. Choosing and installing the best backup plan for a business will help keep customer data safe while increasing brand trust.

5. Cleaning and cleansing the data of

customers' information can become obsolete relatively quickly. In fact, some sources state that up to 25 percent of a B2B marketer's average data is inaccurate or out of date.

In order to make effective use of customer data and improve the quality of information, companies need to regularly update and validate information such as home addresses, phone numbers, and e-mails, and ensure that duplicates and irrelevant contacts have been eliminated.