Why do companies want your data, what do they use it for, and is it necessarily a bad thing that these companies know a lot about you?
In recent years, the collection and analysis of customer information have become increasingly integral to company functioning and success. As the digital world continues to rapidly evolve, data is fuelling business growth across multiple industries. Of course, many people are, quite rightly, concerned about privacy and how their data is used, but it’s important to recognise the numerous benefits that arise from the responsible processing of consumer information.
Here, we delve into the various advantages of companies using your data.
Enhanced support
It’s frustrating when you need customer service and receive less than satisfactory support. But, when companies collect customer data, they can significantly improve their support. By understanding common issues and frequently asked questions, businesses can train their support teams more effectively and develop comprehensive self-help resources.
Data analytics can help resolve issues more quickly by providing support agents with relevant information about your history and preferences. Data collection allows companies to offer highly personalised customer support, which in turn builds customer satisfaction and loyalty.
Better products and marketing
Consumer data provides insights into market trends and customer preferences, helping companies make informed decisions with their product development. By better understanding what their customers need and want, innovative product design and better services naturally will follow.
This helps businesses invest in products and services that are more likely to do well, saving time and money, and also helps deliver what people want more efficiently. Data-driven marketing is also far more effective than traditional methods and improves Return on investment while delivering engaging and relevant content to consumers.
Data collection can enable companies to offer personalised marketing and discounts, which can benefit consumers if done transparently and with consent. For example, look at supermarket loyalty schemes. You scan your loyalty card to get potentially better prices and offers on the products you are purchasing. The supermarket can then see exactly what you buy from them each time you visit and can then tailor your offers to suit your taste, not to mention also offer you other products which your data shows you might be likely to buy, which may potentially lead to additional sales for them; so your data is assisting them in giving you better-targeted deals, as well a potentially increasing their revenue. Imagine if every single customer bought one extra product suggested to them by their loyalty app every time they visited. The increase in revenue (due to the sheer number of customers the supermarket has using its loyalty apps) would be enormous, and this shows how important your data is to these types of companies and others, but it could also be useful to you to find new products you might like to try, or save you money on things you were going to buy anyway by being offered discounts, and this is just the tip of the iceberg!
Fraud detection
Fraud is something that can affect everyone, and consumer data plays a critical role in identifying and preventing fraudulent activity. By analysing transaction patterns and online behavioural data, companies can detect anomalies that could indicate fraud.
This information is protected by strict GDPR laws and works to help promote a safer digital world for everyone. Remember that using secure passwords and enabling two-factor authentication across all your accounts and devices is key to maintaining security when doing anything online.
Businesses are highly competitive, so companies that can leverage their consumer data effectively will gain a competitive advantage over competitors. Data-driven insights enable businesses to anticipate market trends, understand their customers' behaviour and adapt their marketing strategies accordingly. While it can feel daunting to have your data collected as a consumer, economic growth benefits everyone by creating jobs and fostering innovations across all industries.