CUSTOMER DATA FOR MARKETING - THE GOOD, THE BAD, THE UGLY

Collecting customer data in marketing has its advantages such as - catering to customers preferences, ensuring proper communication and predicting needs in a convenient way. However, there are challenges like privacy concerns, data usage restrictions etc.

Benefits of collecting customer data

1. Customer Segmentation - Collecting and segmenting customer data allows companies to better engage with existing customers and create efficient models for the customers journey.
2. Stay in line with customers interests - When done right, the use of customer data can be used to make sure companies use this data to satisfy the customer needs and align with their interests. 

Reducing the bad elements of customer data collection 

1. Disclosure Drudgeries - The best example would be the way marketers place terms and conditions pages and privacy disclosure notices. Consumers hate reviewing and going through all the details before getting to the thing they are actually looking for. For this reason, companies are disclosing their terms and privacy forms and displaying them to consumers in a way that doesnt disrupt the customers purpose of visiting the website, blog etc.
2. Maintaining Accountability - Whenever customer data is collected and used, companies need to make sure they use it in a way that customers appreciate it. Using customer data in a way that doesnt effectively serve them can allow consumers to call out that particular organization.

How to prevent customer data collection from getting ugly

1. When collecting data, listen to customers; ask them how they prefer to be informed about how and why their data is going to be used.
2. Train employees on the corporate and regulatory rules related to the use of customer data.
3. Always remind customers about the benefits and value they get by sharing their data.

Reference
Minkara, O. and Minkara (2020) Using Customer Data for Marketing: The Good, Bad & Ugly.  Aberdeen. Available at: https://www.aberdeen.com/cmo-essentials/good-bad-ugly-using-customer-data-for-marketing/