Maximizing the Use of Customer Data in Your Online Business

Jan 2
16:57

2024

Lisa Schmeckpeper

Lisa Schmeckpeper

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In the digital age, online businesses have access to a wealth of customer information. However, many fail to utilize this data to its full potential. This article explores how businesses can better use customer information to enhance their marketing strategies and improve customer relations.

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The Power of Personal Information

Over the past four years,Maximizing the Use of Customer Data in Your Online Business Articles I have interacted with numerous online businesses and consumer websites. In the process, I have filled out hundreds of online forms, often providing personal information such as my birth date. As a marketer, I understand that businesses collect this data for their own purposes. However, I was surprised to find that out of all the online retailers I have interacted with, only two acknowledged my birthday, and only one offered a special promotion.

The Missed Opportunity

This lack of personalized engagement is a missed opportunity for online businesses. Many are struggling financially, despite spending large amounts on advertising. They are failing to realize the potential of a simple, friendly business strategy that could significantly improve their customer relations and marketing effectiveness.

A Simple Strategy

Assuming your business collects personal data from your customers, you can use this information to send personalized greetings and offers. For example, you could filter your customer database to find matching birth dates and send a personalized birthday greeting and special offer to each customer on their birthday.

This strategy requires some initial setup and ongoing maintenance, but the potential benefits are significant. Your customers are likely to appreciate the personal touch, and your offer is more likely to stand out among the multitude of generic marketing messages they receive.

A Proven Approach

This approach is not new. Traditional brick-and-mortar businesses have been using it for years. For example, fast food chains like Burger King and McDonald's send annual "Free Birthday Meal" coupons to children. This strategy helps to build consumer appreciation from an early age.

Why Online Retailers Are Missing Out

So why are online retailers failing to adopt this simple but effective marketing practice? There are likely two main reasons:

  • They are too focused on mainstream online advertising methods, such as banners and ezines, which often benefit advertising agencies more than the businesses themselves.
  • They have not realized that they can use their existing customer database to fuel their next marketing campaign and make their customers feel special at the same time.

In conclusion, online businesses need to make better use of the customer information they collect. By adopting a simple strategy of personalized engagement, they can improve their marketing effectiveness and enhance their customer relations.

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