Using customer data for your digital marketing strategy

You already know data is the new oil. The problem is: how do you put in a well?

Companies with massive marketing departments have sophisticated techniques for collecting and using customer data. But what if you don’t have a full department full of data scientists? Can even small businesses make use of customer data to improve sales?

Absolutely. You just need the right tools.

In this article, we describe different types of data, how to gather it, and how you can use them to inform your marketing strategy.

Understand and collecting customer data

There are three dominant categories of data: zero-party, first-party and third-party. Because third-party data is data purchased through an external source and is impacted by privacy regulations, we'll concentrate on first-party and zero-party data below.

What is first-party data?

First-party data is data you collect from your sources about your customers with consent. As data privacy becomes increasingly strict, marketers have less access to third-party cookies. That means a first-party data strategy will be increasingly important.

Types of first-party data:

• Demographics

• Behavioral and engagement data

• Contact information

• Transactional data

How to collect first-party data:

• Phone numbers during a purchase transaction

• Name and email addresses from account registrations and free trials

• Purchase history from tracking in-app or in-store behavior

• Demographic information from surveys and forms

If you can collect only one piece of data, collect phone numbers. That’s because a phone number lets you continue the conversation via text, allowing you to collect more information over time.

Best practice: Ask for the minimum necessary first-party data on first contact with a customer (including their phone number). Then, ask for more information as your relationship progresses to enrich future campaigns.

What is zero-party data?

Zero-party data is data the customer knowingly and intentionally gives a business or brand in order to tailor a brand experience, product offerings, or customize engagements.

This approach directly asks customers for (or customers offer) feedback based on questions around:

• Preference data

• Purchase intention

• Personal context

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Challenges collecting data

Collecting data isn’t always easy. The biggest challenges are:

• Keeping customers engaged. Don’t ask for too much information, too soon.

• Respecting privacy. Always follow local privacy laws.

• Organizing data. Mobiz helps organize your data so you can provide personalized SMS experiences.

Developing a Strategy Using Customer Data

Here are some ideas for what an effective customer data strategy can look like.

Retention strategy

To keep customers from leaving your product or service, you can do the following.

1. Develop a survey. Ask what customers need most from you. Offer your customers a discount or promotion for completing the survey.

2. Create a system for tracking customer feedback. Give your customers the opportunity to tell you what they’re missing from your product or service.

3. Implement findings. Use the feedback data you receive to improve your product or service.

4. Consider developing a loyalty or rewards program. Use customer data to promote the program to customers who may be most likely to leave your service.

Reactivation strategy

To bring previous customers back to your product once they’ve left, you can do the following.

1. Segment your customers. Use purchase history data to categorize your customers into active and inactive customers.

2. Target your communications. Tailor your communication strategy to your customers based on the data you’ve collected. Use their name and make them feel like they truly matter.

3. Offer discounts. Use data about a customer’s previous purchases to offer them discounts on products that they will find useful.

Customer data strategy example

These strategies are easy to implement with SMS. For example, imagine you sell beauty products. On your website, you encourage your customers to join your SMS subscriber list with Mobiz’ text-to-join feature.  

Once they are subscribed, you can collect data about what your customers are interested in. This is data that tells you what products your audience is interested in. If they click “Shop Fragrances” in a campaign, you can offer them future targeted promotions for fragrances to keep them engaged and promote retention or reactivation.

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Customer data helps you develop effective marketing campaigns directed at particular customers. This data is critical for optimizing conversions and sales.

Remember: prioritize the collection of phone numbers early on. They let you connect directly with your customers and keep the engagement going. Mobiz makes it easy to collect customer data via text. Sign up for a 14-day free trial and get started.