Today’s post will talk about the importance of data collection in businesses today, and how this data can be used to improve the services you provide to your customers. I will start by giving an overview on the definition of data, and why data collection and analysis is becoming so important today. Then I will give some simple examples of how the data you collect can be used as a tool to give your company a slight edge as a startup in Nigeria.
I think most people have an understanding of what data is, but if you don’t, the definition of data according to the freedictionary.com is “Facts that can be analyzed or used in an effort to gain knowledge or make decisions.” Using this definition, an example of data could be a spreadsheet consisting of different sales figures. See the image below:
Figure 1: Raw Data.
In the example above, I have written a bunch of facts. We know the facts in the 1st column is about t-Shirts, there are numbers in the 2nd column without any definition, and the 3rd column has some currency figures. It can be inferred that the table above is some kind of sales sheet, but even that is inconclusive because all the facts are not defined. Now look at the modified table below:
Figure 2: Introduction of new facts, makes data meaningful (Information).
The table now includes more headers that makes clear what the information in the table is about. In the table in Figure 2, you can say that the data has been transformed to information because it has been altered to provide meaning. This is the symbolic difference between data and information. If you’d like to read more on the differences between data, information, and knowledge. See this article:
Now you have an idea of what data is, you might be wondering why data collection and analysis so important in many businesses today. The simple reason is “Business Intelligence”. The internet has brought about so many changes in the way we live our personal lives, and business is no different.
Data collection and analysis provides a unique way for businesses to understand what really makes their business thrive. Understanding and using information can help businesses improve the services that they provide with the knowledge acquired. Making the business operate in a more intelligent fashion.
Now there are many ways a business can decide to use the data it collects to provide improved services to its clients, and one of the most common trends we see today is by providing personalised services. Personalised services can occur in many ways, adaptive interfaces like your Amazon homepage when you sign in, your apple music playlist, etc. The whole idea is that what you have is different from what someone else has i.e. it is tailor made for you.
Personalisation is at the heart of many great services that are provided today, and it is facilitated through the use of data. For example, if I wanted to send out Personalised birthday cards to a friend, I would need to know his/her name (data). So rather than just say a very cold “Happy Birthday”, I can say “Happy Birthday *insert name*!”. But anyway you get the point here, in order to Personalise, you must acquire certain pieces of data.
The same process applies in today's business world. Think about all the major businesses that provide some form of personalised service to you, they all initially have to get some form of information from you. I'm guessing some examples are popping up in your head, think Amazon, Google, Netflix, etc. All these companies have different methods of collecting information about you to provide the services that they do. Just as in the simple case of sending birthday cards I described earlier.
The simple truth is in today's marketplace, personalised services have a deeper connection with customers than offering standard services across the board to all your customers.
A good example to help you visualise this is the multiple promotional messages many individuals in Nigeria receive from their Mobile Network providers daily, asking them to subscribe to different bundles, data plans, etc. Below is an example of such messages.
Now I am happy Airtel thinks of me as a valued customer but to be honest this is a lazy attempt at providing a personalised service, and my immediate reaction to this is that I'm just one of millions of Nigerians that have received this message which really makes me feel valued doesn't it.
Now imagine receiving a text like this instead
“Hi Nnamdi!! You have been selected for N500 Extra Credit Today. Please Call 14495 to Get It.”
A small change but one that will catch my attention a lot quicker than the use of general phrases like “Valued Customer”. Now I'm not sure what the response rates to these messages are but I’d put my money on the 2nd message getting more conversions than the first. I used the term lazy in describing the efforts of this Telecom Giant because when I registered for my sim card I remember submitting my name.
But anyway, this is just one example and it barely scrapes the surface of the things businesses can achieve through data collection and personalised services. With that in mind I've attached some links for those who want to read more about personalisation. Please feel free to post any comments / questions in the section below and i hope you have a great weekend!
Three major benefits of using personalisation in marketing - Andrew Davies
5 Ways to Provide Personalised Service to Small Companies - DaveThompson
Having It Their Way: The Big Opportunity In Personalised Products - Bain Insights
