Upcoming trends in customer data

Companies often collect data on customers who use their websites, interact with them on social media, or access their apps via mobile devices. The data collection landscape is constantly changing, with companies obtaining more information from an ever-expanding and evolving list of sources. Businesses need to focus on securing information via mobile devices, social media, websites, and embedded systems. They also need to take steps to organize this expanding flow of data in valuable ways.

Getting data collection and analysis right can help companies with targeted marketing campaigns and assist them in improving customer experience. 80% of customers value a quality user experience, and data analytics can help define these expectations and gauge customer response to any improvements that you make. Information can also inform other operational decisions.

Here are 10 trends that will affect the way that companies collect, organize, and use data.

1. Customers are using more devices

The average person in the U.S. has access to 10 internet-connected devices in their home. In addition to mobile phones, tablets, and computers, newer products, such as connected TVs and game consoles, voice-activated speakers, fitness-tracking watches, and smart appliances, also provide useful data.

Because of these innovations, the amount of information on customer activities and habits is increasing exponentially. Furthermore, specific-use devices can provide data from a very specific demographic. For example, healthcare or fitness companies are able to get useful information from smartwatches or exercise apps that they can use for targeted marketing strategies.

2. Customers are becoming less concerned about data tracking

Most internet and app users are aware that companies are tracking their online activities and collecting data. This practice has led to concerns about privacy and security. However, a majority of internet and device users think that it is simply not possible to go through daily life without having their information collected.

As more consumers accept that they have to provide data to take advantage of tech tools and Customer Data Platforms, it will be easier for companies to collect this information without alienating customers.

3. Companies will have access to higher-quality data

Companies will have access to more data, and they will have access to information from highly targeted sources. The result of this trend is higher quality data, which can provide specific benefits.

• Companies can use accurate data to gain customer insights, which can help them define trends and use them to make predictions that can inform strategic decisions.
• A business can use quality data to improve the customer experience by defining areas for improvement and testing new user features after deploying them.
• A business can get a complete picture of the market and its customer base because quality information leaves fewer gaps.
• A business can be sure about the accuracy of quality data because it fits within time, demographic, income, or other parameters.
• Quality data is targeted, making it easier to organize and extract useful information without having to comb massive databases.

A company can typically use quality data for multiple purposes, which allows them to get a better overall return on investment for its efforts.

4. Increasing automation of data analytics

Automation relies on algorithms to perform basic analytical and organization tasks. Automated applications can handle the time-consuming tasks related to data collection, organization, storage, and reporting.

This trend will free human analysts up to focus on tasks that can convert the data into value-adding strategies or operational changes. Because automated systems are cost-effective, they can increase the return on investment of data analytics operations. For this reason alone, trying an automated analytics platform can prove worthwhile for a company.

These systems can streamline the data management process by filtering out poor information, mistakes, or typos or flag certain data for inspection by an analyst. Furthermore, analysts can use dashboards to find specific data, organize it, and visualize it in a way that makes it accessible to executives without technical knowledge.

5. Outsourced cloud analytics

Outsourcing data analytics to specialists can bring specific benefits to an organization or company. Analytics service providers take care of data infrastructure, collection, and offer detailed reports to their clients.

• This frees employees up to focus on higher-level tasks
• The company does not have to hire as many technical staff members, which could lead to cost savings.
• Analytics companies often hire staff with specific skills, so clients get expert-level service without having to hire an in-house staff.
• Outsourcing provides more budget flexibility because you only have to pay for the projects that you need.

Finally, these companies handle all compliance issues related to privacy and data security, so the company does not have to.

6. More opportunities for data exchanges

Data exchanges allow companies to share the information they collect with other firms. Specialized cloud-based platforms make this process time and cost-effective because companies can get access to raw data without having to collect it themselves.

These opportunities allow smaller firms to engage in the same kind of big data analysis as larger corporations. However, the trend does come with compliance issues. Companies that engage in the exchange of information need to ensure that they meet local and national requirements for their location and the locations where they collect data. For example, data exchange platforms that offer information from users in Europe need to abide by the E.U.’s General Data Protection Regulation.

7. Usage of blockchain and distributed ledger technology

Blockchain technology can make data accessible to everyone while protecting it from being controlled or manipulated. It allows for secure sharing across interfaces and platforms. With this arrangement, employees, contractors, and different companies can efficiently work together, with everyone having equal access to the data.

Furthermore, the distributed ledger technology is secure and difficult for hackers to gain access to data. This is a major advantage for companies concerned about data privacy and compliance issues.

8. Development of interactive data stories

Data storytelling is the process of translating data analyses so that it’s easier to understand and use to make business decisions. It can also make it easier to use data to clearly explain an idea or strategy decision.

It is becoming more important among analysts as they seek to inform the decisions of their employer or client. Improved visualization tools or dashboards on analytics platforms that allow advanced visual reporting have made this part of the job easier. As visualization tools become better, useful data-driven insights can be more accessible to more stakeholders within a company.

9. Recent data privacy legislation on the federal level

There is no one comprehensive federal law that governs data privacy in the United States. However, the Federal Trade Commission Act (FTC Act) gives the FTA jurisdiction over companies and organizations that collect data online and use it for commercial purposes.

The FTC can tell companies what they need to include in privacy policies and other notifications that they need to supply to customers and website users. The agency can also issue fines and investigate companies that engage in deceptive practices.

The GDPR governs data sharing and security practices in Europe and simplifies compliance by ensuring that individuals have ownership of their data and transparency in data collection and privacy policies. Even companies who are not in the E.U. need to comply with the rules.

Efforts for similar legislation in the U.S. are ongoing, with one bill, the SAFE DATA Act, currently awaiting approval from Senate committees.

10. Recent data privacy legislation on the state level

Current data privacy laws are affecting recent analytics trends at the state level in the U.S. These vary widely, but typically seek to promote transparency and fairness in data collection.

One of the most prominent examples is the California Consumer Privacy Act. This law gives people in California the right to see, correct, and delete any personal data that a company collects. They also have to be given the choice to opt-out of data collection activities. Finally, companies cannot discriminate or offer different services to people who do choose to opt-out of data collection.