Benefits and challenges of using customer data for marketing

Understanding your customer base is an integral part of a successful enterprise. A database of customers is a list of details about all the customers who made a purchase from your company.

Collecting customer data – listening to consumer preferences, monitoring accurate interactions, predicting desires in convenient ways are good things.

Here are few unique benefits in which customer data gathering enhances customer experience.

1.     Data that improves ad experience -
For decades, the advertising industry has consistently spoken about the notion of significance and personalization, and that is because its value cannot be overlooked. Thanks to data, advertisers now have access to more information than ever before

2.     Allows shoppers to save money -
Couponing and special offers are some of the oldest tricks in the marketing arsenal, but information-driven, targeted advertising enables companies to deliver such benefits to buyers when they most require them when shopping.

3.     Makes it easy for consumers to do business Customer-
Friendly services such as one-click shopping and automatic payment processing are made possible through the integration of technology and technology.

Challenges of consumer data:
So what do marketers think holds them most back from leveraging Big Data? The biggest challenge they felt was technological: handling the volume, variety and speed of the data.

1.     Working with the IT department to leverage big data-
This is the first stumbling block to use big data. It requires specific systems that can arrange and convert the data into a format that makes it functional (you've already heard of something called Hadoop).

2.     Integrating and converting big data points into useful insight-
Advertisers are still improving their expertise in data analysis, just with the marketing programs producing results.

3.     How much pace do we need, really?-
One defining feature of big data is velocity. In this section, as Karl Van den Bergh, Chief Marketing Officer, Datastax argues; marketers fail to generate value from big data largely because the importance of data is directly proportional to the speed and the degree to which it can be utilized

References:Strategic Marketing. (2020). Five Benefits of A Customer Database | Strategic Marketing. [online] Available at: https://thinkstrategic.com/five-benefits-of-a-customer-database/ [Accessed 20 Feb. 2020].

Smartyads.com. (2020). Data-driven Marketing Challenges and Solutions | SmartyAds. [online] Available at: https://smartyads.com/blog/data-driven-marketing-challenges-and-solutions/ [Accessed 20 Feb. 2020].

Customerthink.com. (2020). Top 5 Challenges in Customer Data Management | CustomerThink. [online] Available at: http://customerthink.com/top-5-challenges-in-customer-data-management/ [Accessed 20 Feb. 2020].

Minkara, O. and Minkara (2020). Using Customer Data for Marketing: The Good, Bad & Ugly. [online] Aberdeen. Available at: https://www.aberdeen.com/cmo-essentials/good-bad-ugly-using-customer-data-for-marketing/ [Accessed 20 Feb. 2020].

Datafloq.com. (2020). 5 Great Benefits of Big Data in Marketing in 2016. [online] Available at: https://datafloq.com/read/5-Great-Benefits-Big-Data-Marketing-2016/1802 [Accessed 20 Feb. 2020].