Benefits and Challenges of using Customer Data for Marketing

In today’s marketing world, customer data is very effective and necessary for the growth of business. Marketing initiative is to deliver personalized and important messages to every customer. A good customer database can be grouped into segments for satisfying specific purpose, shared interest, relevant content which allows easy identification of the biggest or most potential opportunities and create personalized campaigns for the customers.

On understanding the customer data gives an immediate line of communication with the target customers by making the company easily accessible. This triggered the customer trust and brand loyalty (Infotanks, 2019). Example, Facebook messenger gives a one-on-one, personalized conversation where marketers can see high percentage of open rates with messenger broadcasts and also benefits in forming personal relationships with customers.

Nowadays, many customers purchase products online and overall customer’s journey insights on the website helps marketers to create a list of past purchasers to up-sell promotion campaigns (Minkara, 2018) in the future. Also the customer’s online activity data can be collected and analysed to enhance their user interaction and web experience which can lead to an increase in conversions. Understanding on customer’s behaviour helps creating buyers persona, campaigns and tactics which is valuable for an effective advertising and consistency (Pearlman, 2019) in the market.

In contrast, it is very challenging for marketers when there is a greater disconnect in data acquisition time (Stone, 2002) because it makes customer personalisation less effective and compromise security. It is difficult to acquire streaming data like GPS, site clicks, video viewer interactions which are effective customer behaviour marketing data. The General Data Protection Regulation (GDPR) outlines strict rules that organizations must follow in regards to data collection and protection (Services, 2019). Under SAR regulations, companies must provide a copy of the individual data that an organization has collected about individuals.

Customer Data Platforms (CDPs) allows marketers on creating single customer view where the data is consent at one place and makes the lives of marketers a lot easier.  

References

Infotanks, 2019. Infotanks. [Online]
Available at: https://www.infotanksmedia.com/blog/data-driven-marketing-benefits-challenges-and-examples/
[Accessed 18 Feb 2020].

Minkara, O., 2018. Aberdeen. [Online]
Available at: https://www.aberdeen.com/cmo-essentials/good-bad-ugly-using-customer-data-for-marketing/
[Accessed 19 Feb 2020].

Pearlman, S., 2019. Talend. [Online]
Available at: https://www.talend.com/resources/big-data-marketing/
[Accessed 18 02 2020].

Services, T. C., 2019. Tata Consultancy Services. [Online]
Available at: https://sites.tcs.com/big-data-study/marketing-big-data-benefits-challenges/
[Accessed 18 02 2020].

Stone, M. H. M. &. K. M., 2002. Multichannel customer management: The benefits and challenges.. J Database Mark Cust Strategy Manag 10, Issue https://doi.org/10.1057/palgrave.jdm.3240093, p. 39–52.