Article written by Eva Benoit
Data can be a powerful tool for businesses, helping them to make more informed decisions about their customer base. However, data can also be overwhelming, and if not collected or analysed correctly, it could lead to misguided decisions.
From we.CONECT Global Leaders, here are some key mistakes to avoid when collecting and analysing customer data.
It is easy to fall into the trap of looking at data as an isolated set of facts. However, it is important to consider the context in which the data was collected, as this will help you better interpret the results. For example, if you’re looking at customer purchasing data from one month compared to another, you should consider external factors that may have impacted their decision-making, such as currency fluctuations or changes in economic conditions.
Insights Not Being Validated
Data is only useful if it gives accurate insights into customer behaviour and preferences. Therefore, it is essential that any insights derived from data are validated by checking multiple sources before being implemented. This could include conducting qualitative research with customers or using other methods, such as surveys or focus groups, in order to gain a more complete understanding of your customer base.
The insights gained from analysing customer data should be communicated effectively so that all relevant stakeholders understand what the findings mean for the business. This includes clearly outlining what has been discovered and how this information can be used to inform decisions or shape strategies going forward. Additionally, ensure everyone involved has access to raw data so they can draw their own conclusions when necessary.
Failure to Act on Data Gathered
It’s not enough just to collect and analyse customer data; businesses must also act on the insights gained in order for them to have any value. While some actions may require further exploration before moving forward (such as adjusting prices or introducing new products), other recommendations may be easier to implement (such as changing website design). The key is to identify which actions will have the most impact on your business goals and then take steps toward achieving these objectives over time.
Not Utilizing E-Commerce
E-commerce platforms provide huge time savings for businesses with comprehensive analytics and reporting functions. This allows companies to easily track and analyze customer buying habits over time, as well as identify potential opportunities quickly. By leveraging these features, businesses can save both time and money when gathering customer data while also getting a better understanding of how customers interact with their brands on different digital channels.
Not Evaluating Results
Gathering data from customers and measuring the impact of any decisions based on this data is an integral part of business success. By closely tracking sales figures over different periods, businesses can determine if their pricing strategies are effective, and by gauging customer satisfaction after making changes to their website design or functionality, they are able to make more informed decisions. This type of oversight puts the business in a strong position to avoid costly mistakes in the future.
Collecting and analysing customer data can be an invaluable tool for understanding consumer behaviour and preferences. To ensure accuracy and success, it is important to consider the context in which the data is collected, choose an e-commerce platform like Magneto that provides analytics and reporting features, and measure the impact of any actions taken. Doing all these steps together will help ensure greater success when collecting customer data from various sources today.
DBH from we.CONECT is the blog all about digital transformation. Every month, over 10,000 visitors visit our blog, where we provide relevant and business-critical content to our customers, decision-makers in senior roles and providers of future technologies. Learn more about our work at: www.digital-business-hub.com
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