How to Use Data to Understand Your Customers Better

Posted by Nick Christou on Jun 9, 2020 11:00:00 AM

entrepreneur analyzing data customer insights

Getting to know some of your customers by name and identifying the loyal ones is not enough in today's business environment. You need to appreciate the fact that customers are driving most business decisions currently, and for that reason, you should also seek to understand their purchasing habits.

Big data is an excellent resource for entrepreneurs who are seeking to know more about their clients, and that is why you should consider leveraging the same. Here is some insight into how you can use data to understand your customers better.

1. Prioritize Data Quality Over Quantity

Although most business owners acknowledge the fact that analytics are only as good as the data available, technological limitations and organizational roadblocks continue posing challenges on the probability of retrieving quality data from various sources.

The implication is that entrepreneurs will lack the step-by-step blueprint of a customer's buying journey if they cannot access reliable customer information, which results in misleading, incomplete, or inaccessible analytics. If you want to understand the behavior of your clients, you should focus on feeding your analytics solution with the information that matters most after capturing such data from various sources.

2. Leverage Every Piece of Data Available

Business systems collect a lot of information, and sometimes business owners tend to overlook some of the details therein, which can affect their operations in one way or another. Remember that aggregated data can hide valuable insights. Granular information about the experience and behavior of your clients is critical in enhancing service delivery and improving business outcomes.

For that reason, you should leverage every bit of customer information that your business systems gather.

3. Remain Platform Neutral

Smartphones, laptops, tablets, desktops, among other business systems, can help you collect various details about individual customers. If you are focusing on understanding your clients better, adopting strategies that can help you capture customer experience and behavior insights from multiple data platforms is a wise idea.

4. Avoid Unnecessary Assumptions

The temptation to assume that you know what your customers require after running your business operations for a while is quite high. Unfortunately, unnecessary assumptions regarding the needs of your clients can be costly, and you should avoid making such mistakes at all cost.

Dependence on data allows entrepreneurs to remain objective through the insights they receive, and in turn, they are in a better position to understand their customers.

5. Make Use of Real-Time Information

One of the advantages of data analytics is that it can help you monitor market performance in real-time, which suggests that you can tell the reason behind current client-facing dynamics. In that case, mining real-time customer data will guide you in taking appropriate action to address specific situations, which will ensure that you deliver the best possible experience for your clients and improve the profitability of your enterprise as well.

6. View Your Website Traffic As A Gold Mine

If you have a business website, there is likely a lot of activity taking place there day in day out, and monitoring it is paramount. Your company's site has a wealth of data in motion, and if you do not take advantage of that, you may never get to know your clients beyond meeting them and the volumes they purchase from you on various occasions.

Harvesting the online data available on your business website will point you in the right direction towards understanding your customers better.


Technological advancements are driving change in the way entrepreneurs are interacting with customers and responding to their tastes and preferences as well. Investing in the right technology for your business operations is one thing, but leveraging it is another thing altogether.

So, if you want to achieve the most from your business systems in terms of understanding your customers better, you need to retrieve and make good use of the data you have in-house.

Topics: marketing lifecycle, data driven decisions, big data, customer service

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