For companies to succeed, they must be able to deliver value to their customers. This mission entails having a deep understanding of clients' needs and interests, often by collecting and segmenting customer data. However, it is crucial to ensure compliance with data privacy laws to avoid fines and penalties as well as exposing clients to identity theft. Here are safe and effective tips for collecting and securing customer information.
1. Prioritize security
The IBM Cost of a Data Breach Report found that the global average data breach cost reached $4.24 million in 2021, up by 10% from $3.86 million in 2020. Small- and medium-sized businesses, in particular, lose an average of $120,000 per data breach incident.
To avoid such costs and ensure the safety of customer information, invest in modern security systems and train employees in data privacy best practices.
2. Exercise ethical data collection
Be honest and transparent about collecting customer data. Develop clear privacy policies, allow customers to choose what information to share, and disclose how data will be used.
3. Collect only the data you need
Approximately 60% to 73% of customer information collected by organizations is unused during the analysis process. This flood of data can overwhelm analysts and distract management from making effective decisions. Therefore, before gathering customer data, companies must first decide on the following:
- What information to prioritize
- How the information aligns with business objectives
- How the data will be analyzed
- How this data can help improve the business
4. Back up all data
All customer data collection efforts will go to waste if you lose the data because of cyberattacks, natural disasters, or IT failures. Make sure that your business has an effective backup and data recovery plan.
5. Update customer data regularly
Outdated or incorrect data, such as phone numbers, emails, and addresses, can prevent you from nurturing relationships with customers. Regularly check and delete unnecessary data, duplicates, and inactive contacts.
Collecting and analyzing customer data will greatly benefit your company's overall call Roebuck Technologies today.