In today’s economy, data is increasingly becoming the catalyst behind great customer experiences. We recently discussed Collecting Data and why it’s vital to your business. In this blog, we’re going to dig into developing a strategy for collecting customer data to add value.
Collecting Relevant Data
Employing an effective data collection strategy starts by identifying what adds value to the customers. For example, every customer interaction can provide invaluable information about what motivates your customers to keep coming back. One of the most powerful ways to collect relevant data is through rewards programs. In fact, rewards programs can provide a system for collecting needed customer data. In essence, creating a rewards program can increase the frequency of interaction with your clients and provide you with more relevant information.
How will you Store the data
One of the easiest and most effective ways to store data about your customers is using a CRM (Customer Relationship Management) system. Depending on your budget, there are several CRM tools that will give you what you need. For example, Salesforce, Hubspot, and Zoho are a few of the most popular CRM tools in the market. Expect to spend on average $35 a month per user for a basic CRM package. Before picking a solution, I would suggest doing some research and finding the one that fits your needs and works with your budget. Another key point to remember is these options will serve you for basic customer data collection. Therefore, you want to explore more robust options for data storage such as a database as you grow.
Encryption of Data
Encrypting all customer data is a priority If you’re going to collect any sensitive information such as financials. Creating an effective data collection strategy means protecting that data from hackers. If you hire a third-party company to collect and store your data, make sure they use the highest encryption standards available. By all means, you want your customer data to locked away from any potential threat.
In summary, collecting data about your customer will be an ongoing process of refinement and change. Over time, you will gain a better understanding of their needs and behaviors. In result, this will open the door for more ways to add value and build lasting customer relationships.
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.