When the goal becomes the collection of big data, businesses can lose sight of why they are collecting it and what they should do with it. They need to know what to measure and how to use it to help with decision making and what they need to invest in to use data insightfully. The scale of data matters far less than using the simplest and most effective means to capture data and analyze it.
Companies that cast a wide net and collect any and all data can be subject to privacy and security issues as well as end up swimming in a sea of data that does not help them to make decisions. Here are some tips for determining what data to collect and why customers need to be involved in the data collection process.
Focus on minimal viable data
A focus on the collection of data as a goal means losing site of the practical use of the data. Collecting data with a ‘more is better’ approach neglects considering whether the data is really needed and the risks involved in collecting and storing it. Trying to apply it can be expensive and impractical.
It is important to question the data collection process and determine what to collect to offer the most meaningful results. This is where lean philosophy comes into play as it focuses on minimizing waste and reducing any activity that does not directly create value for customers. LeanData offers solutions that focus on the needs of target customers.
Sourcing the right data offers a better understanding of them, their purchasing behavior, preferences and habits, and this, in turn, helps with delivering better products, services, offers and experiences. The outcome of this is being able to drive more revenue more quickly.
Build trust with customers
Brands today need to be totally transparent with their customers about the data they collect and how they use it. They need to let customers know what type of experience they are trying to create for them and then give them the option of receiving it or not.
More data does not necessarily translate into greater business intelligence and can expose businesses in ways that affect customer trust. Many breaches in trust when it comes to customer data over the past few years have brought new awareness to consumers about the dangers of sharing personal details online.
Most consumers willingly share certain information with brands they trust in exchange for a product or service. However, they have become more wary about the extent of information they divulge online, especially when they can see no apparent reason for the type of data being collected.
Collecting the right data in the right way can help to build rather than erode trust and establish loyalty over time due to the ability to deliver more personalized experiences.
A lean data approach starts with questions relevant to the business and finding ways to answer them through data collection, rather than searching through countless sets of data.
Far less time is spent by employees trying to sift and sort data – time which can be better utilized on more important business operations. Collecting minimal data can drastically reduce the time spent to gather insights.
It is possible to do away with hours of analysis by using new engagement objects, simple metrics and a more holistic view of account engagement. Use intuitive routing flows to make sure the right content gets to the right prospects. Quickly discover which leads or contacts are unengaged and co-ordinate follow-up with highly engaged buyers.