Collecting consumer data

Capturing key data is a priority for any business seeking to understand the marketplace. However, the task requires the use of innovative strategies to circumvent consumer sensitivity about privacy issues.

How it works

There are a number of methods companies use to collect customer data. When there is contact between a customer and the company, marketers can use the opportunity to gather as much information as possible. This might happen at the point of sale in a store or online, where marketers are able to observe customer behavior. Marketers may also choose to solicit
information directly by asking their customers to fill in registration forms and conducting telemarketing calls or customer surveys.

Collecting data to create consumer profile

Digital marketing and e-commerce have accelerated the rate at which customer information is gathered. Some methods require the customer’s input, such as questionnaires that appear online. Others, such as website tracking, are possible without the need to contact the customer.

Surveys Gather customer feedback via
email, text, or mail, and
face-to-face questionnaires.

Social media View customer’s
profile information on social media.

Observations
Study customer’s behavior while they shop in a store or online.

Website trackers Track website visitor’s
movement around a site and see what attracts interest.

Customer research
Conduct research on existing customers or on those who fit the customer profile.

Competitions
Use competitions to collect information, from opinions to demographic data

Contact center Monitor customer calls and store data on preferences and purchase history.

Transactions Ask questions at
checkout—in the store, online, or on the phone.

TECHNOLOGY AT THE CHECKOUT

In this technological age, businesses have the means to learn about their customers without bombarding them with questions. Retailers, for example, typically use three methods in stores to capture information about the customer.

Loyalty program A company may collect information by inviting customers to register for a loyalty program that offers an incentive. A
loyalty program also helps track customer preferences.

Point of sale software Computer software programs that track a customer’s purchases are available, allowing marketers to tailor offers to their spending habits.

Mobile technology The use of smartphones enables marketers to compile data, for example the frequency of customer visits and the amount of time they spend in the store.

WARNING

Data collection errors

❯ Barraging Using a customer’s data to bombard them with information on products viewed or sites visited

❯ Overlooking technical flaws Failing to integrate apps properly, leading to inconsistency (and errors) in collecting customer data

❯ Using only automated systems Neglecting the opportunity to strengthen relationships with customers by communicating with them personally