Here’s 4 Most Critical Questions to Consider when Collecting Customer Data

Top 4 Most Critical Questions to Consider when Collecting Customer Data

Customers are the bloodline of any business. Without them, there will be no reason to continue the business. Even more importantly, there will be no profits. However, when you acquire customer data regularly, it helps you understand what your customers need most and what they expect from your product or services.

Gathering customer data is extremely challenging and a critical task too. Businesses now need to be extremely careful with how they acquire their customers’ data, how they store it, and how they use it for creating long-term or short-term business strategies. A business needs to be transparent during every step of the process.

Let’s explore the questions a business should ask itself and its customers’ when gathering the data.

How will you acquire data?

How a business acquires its customers’ data is highly significant. Businesses are using an array of diversified sources to acquire and process their customer data. You can collect customer data by:

      • Directly ask the customer to create his profile
      • By appending other sources of customer data
      • By indirectly tracking the customers

The most common place to pull data is from consumer activity on a business’s website. Location-based advertising is an interesting method, however, as it uses an internet-connected device’s IP address so that it can build a data profile. Through this data profile, a business can use hyper-relevant advertising methods.

  • How will you protect the data?

    Another important question a business must ask itself when gathering customers’ data is: how will I protect the data?

    It is imperative that every piece of customer data is encrypted and stored securely. Data theft is a real threat to every business. Should this happen to your business, it could potentially close the doors on your company. Therefore, you need to ensure every piece of sensitive data is safeguarded and encrypted.

    However, it’s crucial to remember that safeguarding customer data starts in your office. Studies have suggested that employees are one of the biggest threats to data breaches. Every employee needs to be well versed in the best practices of creating a strong password and ensuring they don’t give permission to view sensitive data to anyone who shouldn’t have access.

  • What data do you need to make the right decisions for your business?

    This question is important as it will form the basis of your data collection. From gathering names, locations, and age to more personal information such as customers’ income status and lifestyle preferences, this data will enable a business to know who they are catering to and what their buyer’s persona. It will allow a business to know who they want to be targeting if they aren’t doing so already. Think about the following to understand what data to collect:

    • Name, age, and family status: Single, married, widowed, divorced, and so on
    • Location
    • Lifestyle: Own a house, living situation, income status
    • Education status: High school, a university graduate, postgraduate
    • Occupation status: Unemployed, in work, retired
    • Specific occupations: marketing, retail, IT, engineering, hospitality etc.
  • Why do you need to gather data?

    Another very important question to consider: why are you gathering this data?

    Is this something that will help you create customized marketing campaigns? Will it show you which demographics respond most to your products or services? Is this for feedback on your current products and services? By answering this question, you will be able to gather the correct data.

    However, this question will also help you understand what benefits customer data will bring your business.

    Above all, the data should paint a clear, defined picture of your customers. This information will be invaluable for the business as a whole moving forward, from marketing to product development.

    Gathering customer data is a challenge. Not only do you need to know what data to collect, and how, but you also need to protect and safeguard every piece of information. Only by doing so can you ensure customers continue to trust your business with their data.

Author Profile

Varuna Raghav
Varuna Raghav
As a CX and marketing specialist, Varuna Raghav has more than 15+ years of experience to her name. Her enriching input has been valuable to the brands and organizations she's worked with.

2 responses to “Here’s 4 Most Critical Questions to Consider when Collecting Customer Data”

  1. Great post. I was checking continuously this blog and I’m impressed!
    Very useful info specially the last part 🙂 I care for such information much.
    I was looking for this certain information for a very long
    time. Thank you and good luck.

  2. I’m always keen to read more on how to acquire new customers with less investment as it’s something I’m continually looking to improve upon. It would be great to get your insights on any innovative methods you may know of that can help me reach and connect with my target market. Thank you for your time!

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