By Chirag Shivalker,
Hi-Tech BPO
We live in a world driven by data, and leveraging it
appropriately in a retail setup has proved its worth in providing relevant and valuable
customer experiences. However, the biggest hurdle, one which makes this shining
moment of truth dull, is the “introvert” approach of retailers in collecting
their customers’ data.
Why Should Retailers Collect Customer Data?
Understanding customer needs deeply, and accepting it to be the
new norm, is the prime reason to collect data. Collecting customer data from the
POS is the key to helping your retail setup know the customers, not only as
individuals but also as a part of a loyal and potential customer base. It
unlocks the insights that assist retailers in making highly personalized
strategic marketing decisions.
What Questions Should Retailers Ask To Collect Relevant Customer
Data?
Ask enlisted
questions to collect customer data to help you segment customers into relevant
groups:
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·
What do they like and dislike? Favorite brands, colors or
categories?
·
How do you prefer shopping? Online, in-store or social? What is
your shopping style?
·
Did you browse online for any product or service?
·
What did you add to your shopping cart but did not purchase?
·
Have you purchased something very recently?
·
How much budget did you allocate to shopping online? What is
your typical spend level?
·
Are you a baby boomer or from Generation X?
·
Are you married? Do you have kids?
·
How did you hear about our store?
How Retailers Should Thoughtfully Collect Customer Data?
Address first things first. Start with a strategy of how to not
only collect customer information but to collect relevant first party data
including name, email address, mobile and phone number and a postal address —
if possible, from all interaction points. Strategically collecting customer
data does not suffice, but consistently doing so will. Remember; dirty,
inaccurate and incomplete data is known for wasting your dollars and efforts,
and wastes customers’ time, ultimately leading to dissatisfaction.
1. Adhere to
customer data collection basics:
·
Convenience – simplify
the data input process for customers;
·
Trust factor – be
prepared to explain the utility of their data collected instantly;
·
Relevancy
factor – explain how providing information enhances customer
experience;
·
The process – collect
data at interaction points across the sale, and not only at the cash counter;
and
·
Don’t overdo – data
collection is a long term process, and getting everything at a shot is unlikely.
2. Putting
robust marketing and loyalty programs in place
The second step is to start collecting customer information like
anniversary dates, birthday months, favorite brands and colors and much more,
to derive marketing and loyalty programs. Along with this, use of emails and
surveys will help you convince customers to share more personal data on their
own. Once these data pieces start to fit in the puzzle, you will start gleaning
a complete overview of customer demographics and their individual preferences.
Final Word
Every retailer today should be equipped with a holistic data
collection strategy that addresses the business needs of their retail business.
This holistic strategy should envisage staff training and use of advanced
technology as a data collection tool. Retailers also can resort to outsourcing data
collection to some of the best offshore companies as a more viable option,
rather than allocating it to in-house teams.
Another reason to rope in data collection experts is that it
requires a dedicated and concentrated approach, which along with performing
core tasks gets compromised in case of DIY approach. Data collection needs a
deep understanding of why to collect, what to collect and how to collect data;
as it directly impacts the bottom line. However, more importantly, retailers
should be able to use collected customer information to deliver personalized
customer experiences.
Chirag Shivalker is a
digital content head at Hi-Tech BPO, a
company thriving in the industry for more than two decades. He regularly writes
about the importance of data management for data analytics and the changing
landscape of the business process management industry.
