Advertisement

Are You Using And Abusing Customer Data?

There’s been a lot of hype and discussion around using Big Data to create more compelling shopping experiences.

But of all data types, what matters most? Customer data, of course!

In its latest survey of millennials, SDL concluded that U.S. consumers in this age bracket respond to brands when they use data specific to them to personalize the customer experience. And these consumers are much more savvy in knowing how data is used and when. In fact, 40% of American millennials could identify the digital brands are using to track their behaviors.

Advertisement

Comparing global data, U.S. consumers are more willing to give data in exchange for more targeted offers and messages. In fact, 52% said they had no problem with it. Conversely, only 37% of millennials in the UK and 13% in the Netherlands felt the same. These results reaffirm the importance of understanding your target customers, and engaging with them how, when and where they want.

SDL made several marketing conclusions regarding key customer demands when it comes to using data for marketing. Specifically, shoppers demand:

  •  Transparency: 62% of consumers are concerned about their personal information being used for marketing.
  • Equity: 41% of people are willing to give up personal information for free products and services.
  • Trust: Millennials are seven times more likely to give up information to a brand or retailer they trust.
  • Relevance: 46% of millennials are willing to share more personal information with a business if they receive more relevant offers.

These four factors were spotlighted in a quadrant of sorts, with “Transparency” and “Equity” at the top. In my opinion, transparency and trust trump all. In this day and age, customers are savvy to technology and new marketing practices, as these survey results confirm. It is more important than ever that brands and retailers are open and honest with consumers. If they aren’t, and something goes awry, they may have to do some serious damage control.

Education wins the opt in. It’s as easy outlining the following:

  • What the program is: Is it a push notification initiative? Email? Make it clear.
  • What information you need: Name, address, location, etc. This helps them understand what information, exactly, is being used.
  • Why you need it: Will it help you improve your offers and deals? Will it help you make campaigns or assortment more relevant?
  • The value for the customer: The “why you need it” section touches on this, but indicate what shoppers will get out of the experience once you get more information.

Sure, many shoppers, especially millennials, see data collection and location tracking as standard marketing practices. But some people still are not comfortable with the idea. To win their trust, you must do everything you can to make them feel comfortable. If you don’t, you’re leaving quality data and personalization opportunities on the table.

To learn more about how “Your Data Trumps Big Data,” download the final report and infographic.

Access The Media Kit

Interests:

Access Our Editorial Calendar




If you are downloading this on behalf of a client, please provide the company name and website information below: