In today’s post, we will focus on the popularity ranking of customer data sources.
- Transactional data,
- Declared interests/preferences,
- Known digital identities,
- Offline identities,
- Anonymized digital identities,
- Second-party data,
- Inferred interests/preferences,
- Non-transactional data,
- Third-party data.
Transactional data tells us about the customer’s purchases in our company. Thanks to them, it is possible to deduce what a given person may be interested in in the future. The data referred to as this was indicated as the most popular for a reason. Knowing the customer’s purchase history, we can see what is really the subject of his interest. An example of transaction data is a payment.
By skillfully asking the right questions, we can learn about the preferences of our customers. The information can be obtained by using surveys. The answers given clearly indicate what your customers want.
The concept of digital identity appeared relatively recently – as with most concepts in the field of new technologies. Digital identity is verified information about a specific person who “hides” under this digital identity. These can be, for example, e-mail addresses to specific people. The important thing is that the information is authenticated and verified. We will not dwell on the difference in terms of digital and online identity. These concepts are very similar.
Anonymous digital identities, on the other hand, are those that do not give clear information about who is actually hiding under a given name, address or account. It should be added that anonymous identities are not “worse”. If for – any reason, a person has chosen to remain anonymous, this should be respected.
Data from partners, or Second Part Data, is data that we exchange with our partners. These are “first-hand” data that we obtained, for example, from a business partner. An interesting example is a travel agency that provides data to its clients who are interested in e.g. holidays in Spain. Let’s say we are a travel agency that organizes holidays only in Spain – the data is very precious.
Another popular source of data is data that is deduced from the information we currently have. Suppose a customer buys skis. It can therefore be assumed that he will be interested in buying a suit, thermal clothing or ski boots next. This is useful in creating recommendations – the largest online store in the world has made a good business out of it.
Non-transactional data is, as the name suggests, data that does not come from a transaction. It says nothing, right? Non-transactional data is information that tells us why the customer made the decision that pushed him to buy? They allow you to understand everything that is happening around the transaction, what led to it. Understanding the “why” of your customers may turn out to be even more valuable than knowing what exactly they want to buy at the moment. The benefits can be expected in the long run.
The last source of customer data mentioned by marketers is a third-party-data. Last one doesn’t mean the worst. Access to an up-to-date, well-crafted database is especially good for start-ups, when our own resources are at scarce.
We have cited and briefly discussed the nine most popular database sources identified by marketers from around the World. Regardless of the type, up-to-date and reliable information has become the new currency that build awareness and, ultimately, sales. Whether we collect data about our customers ourselves or we buy them does not matter that much. What we do with the data is important. How we process them. A good CRM system – such as Salesforce, gives you tools that allow you to first organize, analyze and finally draw good conclusions that can be used to build strong plans for the future.
As an official Salesforce partner, we will be happy to advise you on how to use the #1 CRM in the World to better understand your business, environment and your customers. Contact us today and gain advantage on the market!
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Articles you may want to read:
- What is CRM?
- What is Salesforce?
- Basic Salesforce functionalities
- The better way of presenting the data
- CRM? Start with Essentails!
- Grow with the Essentials
- The client won’t wait
- Be mobile!
- Customer Service
ME PL Solution Team