1. Personalization

Consumer data is more than a set of demographics.

Consumers are increasingly spending their time on mobile and social media. They are also sharing more information about themselves than ever before. This data is a major benefit for companies that want to increase their sales and customer satisfaction.

According to a study by Pew Research Center, 79% of Americans on the internet worry about companies infringing their online privacy. As data privacy becomes a major focal point for consumers, businesses must be compliant with laws and follow data privacy regulations.

Businesses must follow data privacy regulations.

Businesses have access to a wealth of information about their customers. From the time they spend on your website and the products they browse, to the items in their shopping cart and the emails they open — it’s all valuable data that can be used to inform and improve your customer experience.

For instance, if you run an e-commerce site that sells shoes online—and not just any shoes but those made by UGG brand boots—you can’t share consumers’ shoe sizes with another company unless you’re working together on some kind of promotional offer or sale. This can lead to fewer partnerships between businesses because no one wants their competition knowing what they’re up against and if your customers wanted their shoe sizes shared with other companies, why would they purchase from your business?

2. New Product and Service Ideas

Consumer data displays what new product and services they’re interested in.

For example, if the marketing team of a particular company discovers that customers are interested in purchasing a product that does not currently exist, they can use their consumer data to help them develop the product or service.

For instance, Netflix’s data helped it identify how popular its original shows were before they were even released. This led Netflix to produce more content aimed at specific audiences and avoid wasting money on projects that may have been unsuccessful. It also allowed them to target customers with advertisements for other products within their portfolio of original programming (such as movies).

Businesses can improve products and services based on consumer data.

As a business, you want to be sure that your customers are getting the best possible experience. That’s why you need to gather information about them and use it to create a tailored experience.

The data comes from a variety of sources, including:

Social media – Data from social media sites like Facebook can help marketers learn about their customers’ interests and habits.

Customer surveys and feedback forms – Customers may give companies their opinions about products or services at any time — whether it’s after receiving a product or service or during the shopping process.

3. Monitoring Campaign Performance

Consumer data helps businesses identify their best customers.

Consumer data is more than a set of demographics. It’s a wealth of information that can help businesses identify their best customers and better serve them.

For example, it may be tempting to think that you know everything there is to know about your customers’ preferences based solely on their age and gender, but this isn’t the case. Your best customers might not be in the demographic groups you first assume they would be—or even at all! If you want to truly understand how your products or services are being used and what consumers value most when buying from you, then having access to this kind of information will make all the difference for your business growth in both short-term sales and long-term brand loyalty.

Businesses should use data as proof of what works and what doesn’t and what customers want in the future.

Businesses can use data to identify crucial customer service issues, to boost sales and marketing efforts, and to get a better understanding of customer preferences. But how can you use consumer data to your advantage without running into privacy issues or violating consumer trust.

For example, if you own a brick-and-mortar store, you might want to know which products are most popular at certain times of the day or week. Or if you’re running an email campaign, you may want to know which offers appealed to your customers and which ones didn’t. Consumer data allows you to learn more about your audience and make informed decisions based on real data rather than guesses.

The growing amount of consumer data has opened up a whole new world of opportunities for businesses and marketers. It’s no longer as simple as creating ads and sending them out into the world; now, you can target ads to specific people based on where they live, what they like and what they buy.

With technological advancement and software, the opportunity for business growth is immense. The challenge is that all this data comes with risks and responsibilities relating to data privacy that shouldn’t businesses ignore.