Benefits and Challenges of using Customer Data for marketing.

Benefits and Challenges of using Customer Data for marketing

Source: educba

Many businesses are spending huge sums of money on marketing. The most important thing in marketing strategy should be to gather customer data because without data the advertisers can not successfully meet the target audience or identity. Valuable customer details help improve almost every aspect of the business of the company.

Benefits of Using Customer Data in Marketing

Better Segmentation

The collection and segmentation of buyer data enables organizations to engage existing customers better in the corresponding communications, and to develop model journeys for buyers for similar prospects. As a result, marketers also provide a more relevant value at the top of the funnel.

Better Targeting

Collecting and analyzing data helps to better understand how customers act online and help to determine which marketing campaigns are most preferable for the target audience, so businesses can increase efficiency by creating more targeted ads.

Reduction of Marketing costs

Cost reduction by improved customer targeting to people who will respond to you.

Makes Marketing More Streamlined

It helps to streamline marketing more by leveraging the data and the ability to extend the target audience across multiple channels.

Challenges of using Customer Data for Marketing

Data growth: Storing and analyzing all the information is one main challenge faced.. 

Generating insights: Gathering all the data is one task, but it is not enough for a company to obtain data, they need to analyze its elements to achieve business objectives.

Investments: Costs of using customer data in marketing comes at a price. A lot of tools are required for the processing and collection of data.

Securing big data: Data has to be protected from hackers as if not done so can cause harm to citizens by leaking personal information.

BIBLIOGRAPHY

eduCba(no date), Customer Data | Importance and Benefits of using Customer Data. eduCba[Online]. Available at:https://www.educba.com/customer-data/(Accessed: 25 February 2020)

Omer Minkara(2014), Using Customer Data for Marketing: The Good, bad and ugly. aberdeen[Online]. Available at:https://www.aberdeen.com/cmo-essentials/good-bad-ugly-using-customer-data-for-marketing/(Accessed: 25 February 2020)

admin(2019), Data-driven marketing: benefits, challenges, and examples. infotanksmedia[Online]. Available at: https://www.infotanksmedia.com/blog/data-driven-marketing-benefits-challenges-and-examples/(Accessed: 25 February 2020)

Arvind Rongala(2016), top 5 challenges in customer data management. customerthink[Online]. 

Available at: http://customerthink.com/top-5-challenges-in-customer-data-management/(Accessed: 25 February 2020)

Cynthia Harvey(2017), Top Big Data Challenges Datamation[Online]. Available at:https://www.datamation.com/big-data/big-data-challenges.html(Accessed: 25 February 2020)