Customer Data: benefits and challenges faced in marketing.

Introduction

Customer data in marketing is a form of direct marketing which involves the collection of different types of customer data such as name, address, mobile number, email, payment history, interaction and interest. when this data is analyzed it helps to create a personalized experience for different customers as per their interest and to attract new customers. Database marketing is on the rise again because marketers have access to a huge amount of customer data like never before. Customer data has it's own benefits and challenges which marketers have to consider as mentioned below.

Benefits of using Customer Data.

• Customer Segmentation: The goal of marketing is to give personalized and relevant content to different customers as per their interest and by segmenting them it gives the opportunity to reach the right customer.
• Customer Feedback: It is important for marketers to collect customer feedback to get insights about their company services. This helps marketers to understand their customers.
• Multi-Channel Experience: Customer data can be used to target them on different channels by using automated marketing campaigns which will make sure the message is consistent and reaches the intended target.

Challenges faced using Customer Data.

• high-quality data: marketing campaigns that are driven by data are only effective if the data that has been collected is quality data. Using outdated data or general data can hurt marketing campaigns as the targeting won't be personalized or direct.
• Tracking Metrics: Marketers at times prioritize tracking every metric through different channels but for long-term engagement, being selective about tracking data helps focus on KPIs to measure conversations through target behaviour, engagement and loyalty.
• Acting at the right time: The first step to understanding the customer is to collect and analyze the data but acting over it at the right time to capitalize on the interest of the customer in your brand is what makes the difference.

References:

• Clevertap. 2019. What Is Database Marketing? Why It’s Important and How to Do It Right [Infographic]. [ONLINE] Available at: https://clevertap.com/blog/database-marketing/. [Accessed 25 February 2020].
• Infotanks Media. 2019. Data-Driven Marketing: Benefits, Challenges, And Examples. [ONLINE] Available at: https://www.infotanksmedia.com/blog/data-driven-marketing-benefits-challenges-and-examples/. [Accessed 25 February 2020].
• Stirista. 2019. 9 Benefits of Database Marketing That Will Get You Excited. [ONLINE] Available at: https://www.stirista.com/blogs/benefits-of-database-marketing. [Accessed 25 February 2020].
• Aberdeen. 2014. The Good, the Bad, and the Ugly in Using Customer Data for Marketing. [ONLINE] Available at: https://www.aberdeen.com/cmo-essentials/good-bad-ugly-using-customer-data-for-marketing/. [Accessed 25 February 2020].
• Martechtoday. 2019. There are 6 challenges every data-driven marketer faces. Here’s how to manage them.. [ONLINE] Available at: https://martechtoday.com/here-are-6-challenges-every-data-driven-marketers-faces-233004. [Accessed 25 February 2020].