The ability to create great customer experiences is becoming increasingly important in today’s market. As consumers, we all desire a personalized experience when shopping. Companies that continue to succeed in today’s market will have an effective strategy for collecting relevant data about their customers. Today we’re going to cover some of the reasons why you should start collecting customer data.
Creating an effective personalized experience starts with the right data and leads to a competitive advantage in the market. Think about any time that you went to a restaurant and had a waitress/waiter that goes beyond your expectations. Also, reflect on a time when a waitress/waiter tarnished your experience by forgetting the specifics of your order. The difference between a negative and positive experience partially exists within the details of the customer’s personal expectations. In essence, employing an effective data collection strategy will help you have a more refined understanding of your customer needs and expectations.
Building a system to collect data about your customer can lead to an increase in sales for your business. Studies have shown that companies that are personalizing the customer’s experience are seeing on average 19% increase in sales. Effective personalization starts with asking the right questions. Find out the attributes of the experience that are most important to your customers. Test what techniques could be used to gather the data effectively. You will eventually notice trends in your data that can lead to growth opportunities.
You gain an advantage when you know exactly how to create a unique customer experience. Studies show that less than ten percent of top retailers are highly effective at personalization, and one-third have no ability to support personalization. By providing a unique experience, you’re allowing your company to separate from the noise in the market.
In conclusion, creating a strategy to collect data will be important in building a growing business in this evolving economy. Start evaluating your current data infrastructure and move forward with a plan. Expect this to be a process and not a one-time project in which you plan to make constant improvements.
Alex Brooks is the founder and CEO of AE Brooks, LLC (d/b/a, Entreprov), a Seattle-based firm that builds custom predictive analytics and automation tools to enhance a company’s performance and decision making.