Benefits and Challenges of Using Customer Data for Marketing

Benefits of Using Customer Data for Marketing

Segmenting Customers - With the help of using customer data for marketing many companies have been successfully segmenting their customers. By making use of the data collected from the customers, the companies can filter and categorize their customers based on various factors such as location, buying behavior etc. Once the customers are segmented various strategies can be applied to various customer segment needs.

Knowing Customer Interests - By collecting the data from the customers the companies are able to know their customers more. If only they know their customers more, they will be able to design the right type of marketing needed for them. Marketing will be successful only when the customers feel that they are valued or their needs and interests are into account by the marketers.

Challenges of Using Customer Data for Marketing

Creating Bad Impression - Customers often have a bad impression about the company when they come to know that their data is used by the company for its goals. It all starts when the user tries to install an app or when the user opens a website, where there are forced to accept the Terms and Conditions of the company including that they will use the customers data.

Trust Issues With the Customers - One of the biggest challenges of using customer data for marketing is that the customers' trust should be maintained. Customers should be made aware that their data will be used for the purposes mentioned and not anything else. Breaching this can lead to serious trust issues with the customers and also the customers can sue the company for doing so.

Complying with Rules - Another crucial challenge while using customers' data for marketing purposes is that t comply with the rules and regulations. Different countries have different rules and regulations to using consumer data.

Reference

Using Customer Data for Marketing: The Good, Bad & Ugly

https://www.aberdeen.com/cmo-essentials/good-bad-ugly-using-customer-data-for-marketing/