The Delicate Art of Collecting Data Responsibly

It has always been important for businesses to gather data on their clients. In today’s market, one of the real problems isn’t figuring out how to get the data, but figuring out which data to get. Even if you are using the master data management services from a company like Profisee, you still have to figure out the data that’s important to you. Fortunately, you can find the right data easier by asking yourself three basic questions.

Will You Use It?

One of the most common mistakes made in data collection is failure to use the data collected from customers. Smart business spending really can benefit from the axiom of “waste not, want not”, so make sure that you’re never trying to collect data that you aren’t going to use. Not only will this make it harder for you to sift through your relevant data, but it will also boost the effort needed to collect customer data from the very beginning.

For most businesses, this means targeting the data that you collect. Every business needs to collect the basics (location and identification data), and any business that sells products or services online needs to gather transactional data (transaction history and frequency). Beyond this, there’s actually a wide field of data that you can collect from your customers, but it’s worth neither your time nor your effort if you aren’t actually going to use that data. It’s better to have a narrow focus and use everything you have than to have a wide focus and ignore most of the collected data when you are done.

Will It Benefit You?

Business decisions have become increasingly data driven. That’s why so many businesses are turning towards master data management services from companies like Profisee and why the process of collecting consumer data has become such a huge part of the industry. Gathering this data is not, however, something that needs to be done for its own sake. When you look at the data you’re gathering, you have to determine if doing so is actually worth the time and money you’re spending on the project. In short, you need to determine if the data points you are collecting will benefit you.

It’s important to ask yourself if the data you are collecting will allow you to make better business decisions. In most cases, simple things like personal and transactional data will be easy to justify gathering. After all, knowing where your customers are located and when they shop with you has always been something that businesses need to know. When it comes to other forms of data, you might not get much of an actionable benefit from the data gleaned. If you run an online shoe store, for example, you probably won’t get much value from finding out the general computer specs of your average site visitor. Focusing more on mobile versus PC numbers, on the other hand, might give you the data you need to improve your site.

Will Customers Mind?

One of your primary goals in gathering consumer data should be to create a better customer experience. While the profit motive is very important, the end goal of this data collection should always have the goal of making the buying experience better for the subjects of your collection projects. You’re not just looking to gather data for fun – you’re trying to make a site that better caters to the needs of those who shop with you or use your services. As such, it’s important to make sure that your data collection process isn’t one that alienates your core clientele.

Despite online calls to the contrary, the average consumer doesn’t really care enough about his or her own personal data to make a change in the way he or she shops. In most cases, the biggest barrier in terms of consumer engagement is how hard you make this data gathering process. If you’re putting up multiple walls between the consumer and what he or she wants, you’re going to turn off customers. This means that you may have the customer’s data, but you won’t have his or her money. If your customers are being turned away by the way you collect data, you’re not making the right choices.

If you want to make sure you get the right data from your customers, ask the three questions above. Know if you’ll use the data, if the data will be beneficial to you, and if gathering that data will turn away customers. Once you know these answers, you can start gathering the data that matters the most to your business.