Benefits and Challenges of using Customer Data for marketing

Things happen too fast, especially in the online world. Customers have far too many
options, and if your company reaches the customer at the right time, with the right
content, focusing on providing good customer service, you have big chances to be
chosen by them.

According to a survey (NewVantage Partners, 2018), 97% of the companies were investing
in big data (BD) and artificial intelligence projects. 73% claim to have achieved measurable
results.

Whenever a marketer thinks when the topic is customer data, it is inevitable to think and
I can name some of the benefits; Insights to create the perfect segmentation and the
right content to interact with customers or potential customers, improve customer
relationships, build awareness, provide a multi-channel experience, better solution
development, increased revenue, expense reduction and so on. 

I would say that the greatest challenge of data-driven marketing is getting the data in
a single place where it can be easily analyzed and can be used to make informed decisions. 

Analysing the data also results in extra employees to give a meaning for those data, to
translate what they want to say, taking in consideration that much data is just useless,
which also means extra cost. 

Having GDPR in the picture also brings some limitations, as you cannot collect data from
everyone and also requiring extra care with sensitive information, companies must
provide the necessary security measures. We cannot forget cybersecurity risks and the
difficulties of compliance.

Data-driven decisions result in improved customer retention, sales, and brand awareness

Big Data analytics means an opportunity to make better-targeted marketing approaches
faster than ever and compete against data-driven rivals.  

Reference:

Smallbusiness.chron.com. (2020). The Advantages & Disadvantages of Database Marketing.
[online] Available at: https://smallbusiness.chron.com/advantages-disadvantages-database-
marketing-22810.html [Accessed 24 Feb. 2020].

Onix-systems.com. (2020). The Pros and Cons of Big Data for Businesses. [online] Available
at: https://onix-systems.com/blog/the-pros-and-cons-of-big-data-for-businesses [Accessed
24 Feb. 2020].

Infotanks Media. (2020). Data-Driven Marketing: Benefits, Challenges, And Examples | Infotanks Media. [online] Available at: https://www.infotanksmedia.com/blog/data-driven-marketing-benefits-challenges-and-examples/ [Accessed 24 Feb. 2020].