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Why Collecting Customer Data is Essential to your Business

by: Robin Johnston On: May 30, 2018
3 min read

As a business owner, it’s important to understand who your customers really are. After all, without them your business wouldn’t exist. For this reason, it’s integral that you are able to meet the demands of your customers to achieve a competitive advantage. One of the best ways to do this is by collecting customer data. 

Customers are spending an increasing amount of time online and because of that, the options of gathering customer data have advanced beyond measure. Collecting this data will not only help you build a loyal base of customers, but will assist in attracting potential new customers as well. Here’s why collecting customer data is essential to your business.

Customer data is information collected that gives you details about customers, such as names, contact information, buying behavior and demographics. Gathering this kind of data should always be included in your marketing strategy because without it, you simply cannot market effectively. Collecting customer data essentially allows you to target customers with more precision.

There are various sources you can use to collect data. Some include, but are not limited to:

  • Social media 
  • Your website
  • Campaigns
  • Surveys

How Customer Data will Improve your Business


In order to reach your customers, you have to know what platforms they utilize online, and which ones they don’t. Every individual is different and some customers prefer certain platforms over others. You don’t want to spread your marketing efforts across various platforms only to see little to no results.

Instead, your customer data will point you in the direction that you need to be facing. For instance, if your customer-base is relatively young, you are more likely to attract them on social media platforms such as Twitter and Instagram. However, if your customer-base is older, they may prefer a well-written email. 


Customers are continuously changing, and in order to stay connected with them, you have to always be cognizant of their current behaviors. Your customer data is real-time evidence that gives you the opportunity to identify how they currently consume information, shop, or make purchases. This allows you to leverage appropriate strategies.

For instance, does your target audience prefer to shop online or in-store? Similarly, are they more likely to purchase from you after watching an interactive video or after reading a detailed blog post? You can use your data to make changes to your business strategies that will make you more attractive to current customers, while attracting new, more targeted customers.


Collecting customer data is vital to every business because it gives you a higher probability of increasing your sales. For example, if you have a local coffee shop, offering wi-fi in exchange for a name and an email address gives you the opportunity to offer discounts and promote current sales. Similarly, if you have an online store, you can give people the opportunity to subscribe to your email list that gives them access to sales, discounts, and resources in exchange for their contact information. In both cases, this puts you in front of your customers and increases your chances of making a sale, and even establishing a long-term customer.


Gathering and studying customer data allows you to cater to your customer’s needs, ultimately strengthening your company’s position in the market. Customer data will tell you where your customers are online, which is especially important as more individuals are spending more time on the internet. It is  also important that you narrow down what platforms your customers use and how they choose to purchase for the most effective marketing. Overall, gathering and researching your customer data is invaluable. When used correctly, it will strengthen your relationship with your customers and provide an increase in overall foot traffic and sales. 


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