How your data can improve your customer relationships

Every business uses data on a day to day basis. From tracking inventory to SEO rankings, data provides entrepreneurs with valuable insights that can help them run their business more effectively.

However, all that data will be far more valuable when you use it to build relationships with your customers. At the end of the day, a successful business depends on the rapport it develops with its customers – and really, all of your data gathering efforts should take into account your customers.

Use the data to better understand the wants and needs of your customers.

Many people believe that behavioral science is the key to better reaching and connecting with your customers – and for good reason. When you have a clear picture of the actions your target audience is taking and why they do it, you can gain a better understanding of their mindset – what drives them to buy your products or services in the first place. Is.

Market research that uncovers the reasons your customers do what they do can provide surprising insights that help you understand their goals and motivations when shopping with you. Is someone taking 10,000 steps a day because they want to improve their fitness (focus on gains), or because they are concerned about the health risks of a sedentary lifestyle (disadvantage mindset)?

These nuances should define your marketing, allowing you to tailor your messages in a way that feels more relevant to the mindset of your target audience.

Your internal behavioral data can also help you identify where you have lost customers in the sales funnel. Key actions such as dropping a shopping cart or unsubscribing from an email list should be analyzed to identify and fix common bottlenecks within your system. Offering a more streamlined approach makes it easier to meet customer needs and requirements.

Use data to give customers peace of mind.

Your company data should not be for internal use only. Often, companies provide data to their customers to provide them with peace of mind and to increase confidence in their ability to deliver on their service promises.

This became especially clear during a recent conversation with Nico Polvinan, co-founder and CEO of Logmore. At a time when supply chain disruptions have become the norm, Polvinen’s company provides situation monitoring to its customers to help organizations detect shipping bottlenecks or other issues that may occur during the shipping process, such as: Exposure to extreme temperatures or shock.

For businesses concerned about their logistics, the availability of such data provides a broader picture that can enable immediate, actionable change. Quality data enables informed decision making – and ensures lasting loyalty to the company that helped provide such insight in the first place.

Providing data to the customer goes beyond B2B applications. As just one example, consider personal finance apps that help users track their spending habits, and then use this data to provide personalized tips and insights for improvement. Companies that provide useful data as part of their services are set to become an essential part of their customers’ lives.

Use data to make things personal.

Today, companies have many ways to collect data from customers. Even collecting names and addresses during online checkout gives your brand an opportunity to personalize your marketing and make it more engaging.

Of course, companies have even more in-depth options for personalizing content for their customers. By keeping track of their interactions with your company, you can send the right message at the right time, with offers or products tailored to their individual interests.

As just one example, studies have shown that personalized marketing emails result in six times more transactions as non-personal messages. Cart abandonment emails or messages highlighting offers or events specific to the recipient’s geographic area are going to look more relevant and engaging.

The more your customers engage with you, the more data you can collect to further customize your message. Continually collecting and analyzing this information will help you be more proactive in sending the right message.

Your business data can be so much more than the numbers that you throw at a slide presentation. By considering how your data can help you learn more about your customers — or how you can even integrate it into your services — your company is better positioned to turn information into stronger relationships. will be in

The opinions expressed here by Inc.com columnists are their own, not those of Inc.com.