Benefits and Challenges of using Customer Data for marketing.

Customer Data is of various types collected from various channels. Marketing with Customer data is a boon to achieve the targets, conversions, profit etc. But there are challenges as well if the customer is been collected without the customer knowledge later data itself would become a curse for the business. In this blog  let’s discuss benefits and challenges of using Customer data in Marketing.

Benefits of Customer Data in Marketing:

Customer Profiling: Customer profiling is also known as customer behaviour analysis. It’s the collection of data about internet users behaviour across the different platforms, depending on the demographics, using all the available customer data we would be able to create a unique profile for the customer and target them based on their interest.

Right Audience Targeting: It was a great in business to find who are potential customer, now a days using customer data platform “Right Audience Targeting” has become quite easy and beneficial for the businesses. Businesses analyse the database to find out what are the customer interests, their past purchase and what page they spend more time etc and use all this data and target the right customer on the right time.

Customer Segmentation: Customer segmentation is a great thing to be adopted in marketing Customer analytics research show 70% of the companies use customer segmentation technique to dividing their customer category depending on the common characteristics between the groups of customers.

Customer Engagement: In this segment we would keep the existing customer engaged and this would be happening with the existing customer who has been purchased or subscribing to newsletters etc. This is possible by sending promotional email, push notifications depending on their past purchase or interests.

Challenges of Customer data in Marketing:

It is very obvious when the usage of customer data in marketing has many benefits likewise many challenges also would be around. Recently data privacy policies have been updated. Thus, GDPR guidelines has become very hard to ensure data protection becomes key challenge for the companies. Recently many GDPR complaints has been raised from the customer there are many rules been implemented in terms collection of personalised data’s of any customer without the concern of the customer. Under the data protection law EU General Data Protection Regulation have imposed huge fines and penalties for many companies.

References:

https://www.mckinsey.com/business-functions/mckinsey-analytics/our-insights/capturing-value-from-your-customer-data 

https://sites.tcs.com/big-data-study/marketing-big-data-benefits-challenges/

https://www.cyberclick.es/numericalblogen/what-is-a-customer-data-platform-and-its-advantages-in-digital-marketing

https://diligent.com/en-gb/blog/cost-of-a-data-breach-ponemon-institute-report/

https://www.enforcementtracker.com/