The importance of Data Collection
Data collection is becoming extremely important for businesses today and
with technology at our fingertips, it is easier than ever before. Data helps you understand the day-to-day operations of your business, provides real-time insights into making better business decisions all whilst helping you learn about their customers’ behaviour and interests.
Consumer data has helped companies build their entire business model, promotional strategies and product development. What does your data say about you?
How do businesses collect data?
Companies capture data in many ways and from many sources. Some processes are highly technical in nature, while others are more automated through reporting tools such as Google Analytics, social media insights, and reporting software like Raven Tools. Additionally, it can also be collected by asking your customers in person or by survey using survey tools like Survey Monkey. In fact, to gain an accurate representation of your data, you should use all of the methods available.
In addition to collecting data, companies can also purchase it from or sell it to third-party sources. Once captured, this information is regularly changing hands in a data marketplace of its own and can become an additional revenue for you.
How do you turn data into knowledge?
There is also the issue of time when it comes to collecting data, and what we mean about time, is the time to sort through it all and extract key information. This is the part we see many businesses struggle with as they are simply either under-resourced, do not know how to use the reporting tools, or simply not sure what data is important. Although there are many reporting tools, that have algorithms to do this, you do need a keen eye and understanding of how the data will be used.
How do businesses use data?
There are several ways companies use the consumer data they collect and the insights they draw from that data:
1. Improving customer experience
For many companies, consumer data offers a way to better understand and meet their customers’ demands. By analyzing customer behavior, as well as vast troves of reviews and feedback, companies can nimbly modify their digital presence, goods or services to better suit the current marketplace.
2. Refining marketing strategy
Data can help companies understand how their customers are engaging with their products, and promotions, allowing them to adjust accordingly. Like other aspects of consumer data analysis, personalisation for your target market is becoming key.
We use a process called ‘Customer Mapping’ also known as journey mapping, which follows their journey or exposure to your products and services. Not just through your online presence but through your website and social media platforms.
3. Turning this data into cash flow
As mentioned earlier, rich data can be profitable, especially for companies in the same industry as you. Providing you have obtained it in all the ethical ways, you can engage a data broker to help you sell information, representing an opportunity for a new stream of revenue.
Data privacy regulations
So much consumer data has been captured and analyzed that governments are crafting strict data privacy regulations designed to give individuals a modicum of control over how their data is used. The European Union’s General Data Protection Requirements (GDPR) lays out the rules of data capture, storage, usage, and sharing for companies, and stiff penalties for those that fail to comply. Companies that fail to abide by the rules set out within the GDPR face hefty fines. Data privacy regulations are changing the way businesses capture, store, share and analyze consumer data.
You may also find this article helpful GDPR vs Australian data privacy regulations: 5 key differences.
In summary, Technology these days provides your business with loads of information and data, not only so you can better understand your business model, but help identify opportunities and maximise your marketing efforts. We can help you understand that information, create an actionable marketing strategy and take your business to the next level.
Email email@example.com to get started today!