Why Do Businesses Need Accurate Consumer Data?
by Abdul Aziz Mondal Business 20 April 2023
Data is the base for everything that a business does on a day-to-day basis. If they want to get started with a new marketing campaign – a wide array of information will be required.
Even if they want to launch a new product, they’ll still have to evaluate their consumer data. This way, they can ensure that whatever they’re offering is actually needed by the people.
But is this the only reason why most organizations have a data analyst in place?
No, not really. There’s a lot more to it. However, before we get into it – let’s start our article with something a little more fundamental to ease your understanding of the topic.
What Is Consumer Data?
The term ‘consumer data’ can have more than one meaning as a whole. However, in general, it refers to any data or information accumulated by individuals engaged in commercial work.
This ‘data’ might include the following –
- The name of an individual or a customer
- Their email address and the address of where they’re currently staying
- Purchasing habits and behavior as a whole
- Demographics, and
- Personal preferences
Consumer data can be collected by a business through several means and steps. These might include – online surveys, tracking a consumer’s social media activity, credit card transactions, and loyalty programs. The information, then, is used to understand the common behavior of a customer and label them through different categories.
You can create, change, or improve your marketing strategies to gain more popularity within the market and sell your products. However, before you get started with collecting consumer data, here’s something you need to know –
The accumulation and usage of consumer information are subjected to various regulations and laws. So if you want to move forward in that direction, it’s a must that you follow the GDPR in Europe and the CCPA in the USA.
How Is Consumer Data Collected?
Consumer data, in general, can be collected through various tools and methods. Here is an enlistment of the options that you can choose from –
- Online Survey: Before you launch a new product, you should create a questionnaire and reveal it in front of your consumer base. They can take their time and answer the entire thing properly. It will help you understand what they actually want from you.
- Social Media Activity: Various SM platforms, such as Twitter or Facebook, collect a lot of data from their users and store it accordingly. If you want, you can also use it for targeted advertising and consumer-focused marketing.
- Website Tracking: If you have a website, you may install a tracker within it to keep an eye on where your consumers are clicking on the most. This way, it will be easier for you to understand which section of your site you are supposed to improve the most.
- Loyalty Programs: Loyalty programs are all about collecting information on the purchases of your consumers and their preferences. Moreover, this may also help you get some information regarding the buying behavior of your customer base.
- Mobile Device Tracking: An organization may also use GPS tracking or some other similar technology to accumulate consumer data in their system. The information can be based on the movement patterns of the customers or their location as a whole.
Before you begin collecting the personal information of a consumer, it’s important to acquire their consent first. Also, protecting the information properly will be important to you too.
Importance Of Getting Accurate Consumer Data
So, why do you really have to go through such struggles to acquire your consumer data? As per a report, evaluating the aforesaid information can help you in more than one aspect.
These are –
- With well-organized information in your hands, you’ll be able to make informed and better decisions as a whole. This, in turn, can help in decreasing the risk of making a bad decision and damaging the reputation of your entire organization.
- The more accurate data you have in your hands, the easier it will be for you to create a business strategy accordingly. So, the issue of experimenting every once in a while will vanish entirely. And your company will be able to become more productive too.
- When you have enough data on your hands, it’ll be much easier for you to focus on a specific consumer base proficiently. So, if needed, you’ll be able to launch targeted and personalized marketing campaigns as well. No need to second-guess anything here.
With accurate customer data, you can also build a sense of trust between you and your client base. This, sequentially, can help you in developing and preserving brand credibility too.
Besides, with accurate data supporting you, you’ll also avoid a lot of business-related issues and pitfalls. So, with it, you can also save your money, time, and other assets accordingly.
How To Improve Your Data Accuracy?
Improving your data accuracy can be done in more than one manner. Here are some steps we have mentioned to help you out a little.
- Having a proper data collection plan can help you accumulate the required data in an organized manner. This way, the risk of losing your data will be quite low as well.
- If you want, you may also set a data quality goal for your business and adhere to it. It can be done through a set of tools and programs found on the internet.
- Make sure that the data sources you are using are of better quality. This will ensure that you are not getting any kind of erroneous or compromised information.
Data For The Win!
Apart from what we have mentioned previously, you should also conduct a proper data audit process for your system. This will help you find out the mistakes in the available information and ensure that you do not believe in a mistake. So your data evaluation and coming up with a decision will be much more effective as well.