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6 Strategies for Collecting Customer Data for Early Personalization

6 Strategies for Collecting Customer Data for Early Personalization
Published On
March 8, 2023

Unlock the power of early personalization with our comprehensive guide on collecting customer data. Discover six effective strategies to gather valuable customer insights, from leveraging website analytics and surveys to utilizing social media listening and CRM integration. Learn how to lay the foundation for personalized experiences, improve customer satisfaction, and drive business growth.

We are living in a world that is not driven by technology, but by data! Yes, data holds a lot of importance in every sphere and today we are going to explore how data can be collected and used for personalization in retail. 

Personalization is what attracts customers these days to any business. Whether it is clothing, decor, beauty, kitchen accessories, or even a small toothbrush, customers seek a personalized experience these days. But why personalisation in the first place? 

  • Personalization ensures that every customer experiences a unique journey across every channel or touchpoint. 
  • Personalization connects customers with a brand on an emotional, trustworthy level and improves their shopping experience. 
  • Personalization makes them feel valued as a customer and hence affects how they shop from a brand. 

So much so that, 91% of consumers say they are more likely to shop with brands that provide offers and recommendations that are relevant to them. This clearly means that personalization is the key to success in any business these days. But how to ensure personalization in your retail business? We have 6 strategies that you can start immediately:

1. Collect fewer data from new customers 

Whether someone is buying from your brand for the first time or whether they are just visiting your site for the first time, you must not overwhelm them by asking them to fill out a form or enter a lot of details or even take a survey. Simply ask them for their email address and then use a series of emails as a welcome gift for them. You can now use this email series to collect more data about your customers such as what discounts they prefer, what products they like, and so on. 

2. Know what data you need to collect 

Some retailers straightaway ask for information that is not even needed. This can put off the customers and they might lose interest in your brand. For instance, you cannot ask a person who is visiting for the first time on your website to share their home address with you. No one will be willing to do so. We found that 67% of internet users worldwide are more concerned with their online privacy than they’ve ever been. So, asking for irrelevant data might turn the tables for you. Instead, you should wait for the right time to ask for the right information. 

3. Tell your customers how this data will be used 

If you want to know more about the shopping preferences of your customers, why don’t you share what will happen if they share the data with you? For instance, if you are asking what products customers want to see more out of home decor, fashion, and technology. Based on what the customers say, you will be using that information for providing better product recommendations. You can also tell your customers that you will be giving them an upfront discount if they fill out the required form. You never know how many people will be willing to share their information, preference, and interests because of your honesty. 

4. Keep your customer first 

Do not let your customer think that the data that you are collecting is for your benefit. Make them realize that it is all about them. This might sound similar to the third strategy that we shared but it is not. In the third strategy, we encouraged you to increase the transparency between you and your customer. Here, we want you to make them feel that it is all about them. Here are some ways to do that:

  • Take note of how you communicate with them. Your tone and choice of words should be done mindfully.
  • Do not use robotic language with them. Communicate like a human. For example, you can use their first name or use a conversational tone in your email. 
  • Ask for help! In other words, ask them to share their information so that you can make the shopping experience better for them. 

5. Add incentives to collect data 

Do you know that birthday emails outperform all other types of promotional emails in almost every way? They can boost your average open rates and revenue per email by over 20%! However, only 12 percent of brands send reminder emails for birthday offers. Milestones like birthdays, anniversaries and other special occasions like Christmas and new year can help you gather more data easily. You can send your customers a personalized offer on special occasions and keep them engaged with you. You can take their feedback afterward or ask them to fill up a short survey about how they feel about your brand. This data can further be used to personalize their shopping experience even more. 

6. Ask your customer how they want things to take the course

Continuing our agenda of keeping the customers first and working on increasing transparency between your brand and your customers, we have our last strategy to share with you. Here, you are going to ask your customers how they want to communicate with you. For instance, you can ask whether they want to keep receiving messages on WhatsApp and email or just want to choose one option. You can also ask them to set the frequency of emails they want from you. You can even find out the specific category such as promotional emails, updates, general news, etc. that your customer prefers and wants to receive those emails only. This can help you understand your customers at a deeper level. 

That’s all! Early personalization is no big deal when you have the right strategy to collect data from your customers. Use the six strategies that we discussed today to bring a change in how you collect data from your customers. Understanding when to collect data, how much data to collect, and keeping the customer in the center can help you collect data without failing. 

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Marketing & Content Strategist

Anisha Arora is an experienced Marketing & Content Professional who often breaks down complex topics for readers here. She collaborates with various teams to seamlessly combine different viewpoints and knowledge about customer retention, CRM, loyalty, and marketing technology. When she's not working, you'll find Anisha sipping coffee and binge-watching her favorite TV shows.

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