Why and How to Collect Data?

Today, personalization has become imperative for brands faced with a plethora of offers and choices for consumers.

However, access to data is becoming increasingly difficult due to GDPR and the growing trend of internet users refusing cookies: 39% according to an IFOP study.

This evolution greatly complicates the acquisition of data, particularly first-party and zero-party data, which are essential for understanding customer expectations and thus ensuring effective personalization.

How, as a company, can one proceed with this collection efficiently and analyze it to obtain GDPR-friendly and quality data?

Why Collect Data?

Data: The Raw Material of the 21st Century

Data has become the pillar on which decision-making rests in companies that have transitioned to the digital era. However, one question remains: why is data so important?

In a word, the answer is analysis.

This data provides precise information that allows companies to:

• Have a deep understanding of the market. By scrutinizing trends and behaviors, companies can better understand consumer needs, anticipate market developments, and adjust their offerings accordingly;

• Anticipate future trends through predictive models based on this data. Companies can thus position themselves ahead of emerging trends and prepare to meet customer expectations even before they fully manifest in the market;

• Respond proactively and precisely to customer needs. By understanding individual preferences, purchasing behaviors, and feedback, companies can personalize their offers and services, thereby strengthening customer loyalty and satisfaction.

To be convinced, in a Gartner survey conducted among 283 customer service and support leaders from August to October 2022, 84% of customer service and support leaders indicated that customer data and analytics were “very or extremely important” for achieving their organizational objectives in 2023.

The Role of Data in the Big Data Era

The Big Data era has opened new perspectives for data collection and analysis. Companies now have the ability to process massive amounts of data, whether from internal or external sources. A true machine that opens up numerous perspectives.

Data analysis tools and collection methods have evolved on their side to meet this growing demand. Companies, from marketing to communication, and even product and service creation, can benefit from this ocean of data to increasingly personalize their offerings and gain market share.

Why Should Customer Data Be Handled with Care?

Personal data is a goldmine for brands. But the proliferation of this data, collection techniques, and their not always legal resale lead to risks regarding the privacy of consumers.

Poorly managed data can also lead to cybersecurity risks. Especially when it comes to health, research, or financial data. This has led the European Union to take measures and rely on a coherent model.

The GDPR (General Data Protection Regulation) requires companies to process personal data in a compliant manner respecting the privacy of internet users:

• Companies must obtain clear and specific consent from internet users before collecting, processing, or using their personal data. This consent must be given freely, in an informed manner, and unambiguously;

• Personal data can only be collected for specific and legitimate purposes, and cannot be processed subsequently in a manner incompatible with these initial objectives;

• Companies can only collect personal data necessary to achieve the specified objectives. They must limit the quantity and retention period of this data to what is strictly necessary for the determined results;

• Internet users have the right to be informed in a clear and understandable manner about how their personal data will be processed;

• GDPR gives internet users several rights over their personal data: the right of access, rectification, deletion, limitation of processing, and portability of their data;

• Companies are required to implement adequate security measures to protect personal data against any loss, alteration, unauthorized disclosure or access by unauthorized third parties;

• Companies must also demonstrate their compliance with GDPR by maintaining internal records, implementing data protection policies…

Remember that you have information concerning the identity of people who have no interest in it being misused or insufficiently protected.

To this end, in addition to “transparent information, o” ther duties are incumbent upon you. Also rely on your Terms and Conditions of Use which must comply with this same regulation.

How to collect GDPR-friendly and quality customer data?

To collect quality data while complying with GDPR, one solution is to focus on community engagement. It thus becomes easier and more authentic to gather useful data.

For this, one of the keys is transparency and obtaining consent. Informing participants clearly and precisely about the purpose of the collection, its objectives, and future implications is an essential prerequisite.

Providing value to your community members is also a major driver of their involvement. This involves offering exclusive content, personalized feedback based on their contributions, customer loyalty programs… This constitutes an effective incentive for their continued participation.

🔎 Good to know: the collection of consumer data from application forms for campaigns launched from the Trustt solution are compliant with current regulations and GDPR.

As you will have understood, diversifying engagement methods is an essential strategy.

Surveys, forms, or discussion groups are all means of reaching the various segments of the community in a relevant and attractive way. While demonstrating the interest you have towards consumers.

In this regard, collecting customer data is essential to understand their needs, preferences, and behavior. There are various methods of data collection, each suited to particular situations. Among the most common methods are:

• Surveys: “this involves asking customers to answer questionnaires and polls. This quantitative and qualitative data is essential for analysis to” improve products and understand target expectations more closely.

• Social networks: they are an extremely rich source of data, whether through analysis of brand mentions, customer comments, or interactions.

In images: this Instagram post shared by Andreia, ambassador for Yves Saint Laurent, generated more than 130 likes and dozens of comments. The detailed performance of the content, impressions, and corresponding engagement rates are also provided to the brand on Trustt.

• The “first party data” (first-hand data): This refers to data collected directly from customers, which is therefore declarative data, such as their name, age, and address. It also includes data “they leave behind, such as their purchase history, preferences, and personal information. This data is particularly important” for loyalty programs.

🔎 Good to know: This information is also collected during registration for Ambassador Programs of companies using Trustt.

• The “third party data” (third-hand data): This data comes from external sources, which are data providers and aggregators. While it is useful for enriching customer understanding, it primarily requires careful management to respect personal data. Note that there is also second-hand data, second party data, but the boundary with third party data is blurred, given that this data comes from partnerships. For example, when a customer agrees, for instance by subscribing to a newsletter, to have their data transferred to partners.

It is therefore preferable to rely primarily on first-hand data. It is more reliable in both senses of the term: its truthfulness and its security.

🔎 Using Trustt means benefiting from comprehensive surveys from consumer applications for ambassador and influencer campaigns, and collecting valuable quantitative and qualitative data. All year round. A process that is simple and adapted to your needs.

👉 Book a demo of the tool with one of our experts

Data Management

Another step in data collection involves its management. This means setting up a system to store, organize, and protect the collected data. A database, such as SQL Server or cloud services like Microsoft Azure or Amazon AWS, are commonly used for this purpose.

What are the risks if your customers’ data is hacked?

When it comes to customer data security, the risks associated with hacking are considerable. Besides financial damages, one must also consider those concerning the company’s reputation and legal consequences, particularly in the context of GDPR.

First, in terms of financial damages, companies risk direct and indirect losses. The costs of recovery after a data breach include technical investigations, communication with affected customers, corrective and preventive measures, as well as potential fines.

The GDPR provides for severe financial penalties of up to 20 million euros or 4% of the company’s annual global turnover, whichever is higher.

Next, the company’s reputation is severely affected. Customers lose trust if their data is compromised, which can result in decreased sales, customer disaffection, and diminished brand value. Rebuilding trust takes time and requires considerable effort in communication and transparency from the company.

In addition, the operational consequences of a data breach can be enormous. Companies must invest in enhanced security measures, train their staff, and implement strict protocols to comply with GDPR standards, which can lead to significant costs and operational disruptions.

Don’t forget the direct risk to your customers: Personal information contains sensitive details such as addresses, phone numbers, financial information, etc. This exposes customers to risks of identity theft, financial fraud, and other forms of cybercrime.

Setting Up an Ambassador Program to Collect Quality Data

An Ambassador Program involves mobilizing passionate and engaged internet users to represent and promote your brand to their network. These ambassadors, often loyal customers, influencers, market experts, or active community members, are encouraged to share their positive experience with the brand and to encourage their circle to engage in the same way.

In the context of data collection, an Ambassador Program aims to gather information, such as feedback, opinions, or even user data. This data is then used to improve products or services, refine marketing strategies, or better understand customer needs.

However, as mentioned above, it is essential that these programs are implemented in compliance with data protection regulations, namely GDPR. Participants must be clearly informed about data collection and explicitly consent to this collection. Transparency, confidentiality, and control of personal data must be priorities in the implementation of these programs.

Do you want to amplify your brand or distributor site? Benefit from mass community engagement to increase awareness? With Trustt, enjoy an Ambassador Program that adapts precisely to your needs and respects customer data.

👉 Book a demo of the Trustt software and get a free audit

Don’t forget flyers and brochures … with a unique QR Code

The distribution of flyers and brochures is a traditional, but declining, method of promoting a business.

To modernize this medium, use new methods like QR Codes that will link to your website or social networks, newsletter sign-up, or your Ambassador Program.

QR Codes allow consumers to easily access more information about your company by simply scanning a code with their smartphone. This significantly reduces paper usage while providing an interactive and immediate experience.

Today, the question is no longer “whether ‘to collect data’: it”‘s essential, as it allows you to understand and retain your customers, optimize your products and services.

But collection methods are evolving and require relying on solutions that ensure both safe collection and processing, for available, regulatory-compliant, quality, and relevant data.