The Hidden Value in Data
Businesses today collect mountains of customer data: email opens and clicks, sales, surveys, social interactions, and customer service discussions. But here’s the catch: most of it never gets turned into anything useful. Instead of creating stronger customer bonds, it often sits in spreadsheets, CRM systems and dashboards, untapped.
The risk? You are drowning in numbers while overlooking the people behind them. The real opportunity isn’t in how much data you have, but in how you use it to understand and serve your customers better.
From Data Points to Human Connections
The old mindset was simple: collect everything, then sort it out later. But in a world where customers expect relevance and respect, that approach doesn’t work anymore.
- 72% of consumers say they expect personalised messaging, and 76% get frustrated when they don’t find it (source: McKinsey Next in Personalization 2021 Report).
- At the same time, people are more cautious about how their data is used.
That means businesses need to shift their focus: from amassing raw data to actually interpreting it. The key is finding patterns, preferences, and stories that reflect customer needs.
Why Businesses Struggle with Customer Data
Even with the best intentions, we often hit roadblocks. Common pitfalls include:
- Hoarding data without a plan: collecting for the sake of collecting.
- Focusing on vanity metrics: chasing likes or pageviews instead of meaningful signals like retention or referrals.
- Siloed systems: data trapped in separate tools, making it impossible to get a complete picture of the customer.
The result? Customers feel like strangers, even when businesses have all the information they need to treat them like regulars.
How to Turn Data into Relationships That Last
- Listen, Don’t Just Track
Go beyond clicks and purchases. Use surveys, support conversations, and social listening to capture real feedback. And reflect that feedback in your communication. - Segment Intelligently
Group customers based on behaviour (like repeat buyers, first-timers, or at-risk accounts), not just demographics. - Personalise Communication
Move away from blanket campaigns. Tailor emails and offers based on what customers actually want. - Anticipate Needs
Use patterns in customer data to predict the next step. For example, send helpful tips just before a renewal or upgrade is due. - Close the Loop
Show customers how their feedback has shaped your product or service. It turns data-sharing into a two-way relationship.
The Role of Trust and Transparency
None of this works without trust. Customers are willing to share data, but only if they believe it will genuinely improve their experience. Businesses that are upfront about how they use customer information, and show the value in action, build loyalty faster.
Think about it: which brand earns your trust? The one that hides data practices in fine print, or the one that says, “We use your feedback to make your service better, and here’s how”?
A Quick Case Example
Take a fitness membership company that was experiencing an increasing number of members not renewing. Instead of treating this as a churn statistic, they dug deeper into their membership patterns. They discovered that the members who didn’t renew showed a clear pattern of no longer engaging with their membership months before renewal.
By segmenting their customers and moving from standard membership emails for these disengaged customers, they started to see some renewed engagement. And where email didn’t help, a helpful call to find out what was going on was the key. It wasn’t a lot of calls, just a few very targeted ones.
We all know that gyms expect us to join and then stop turning up. But it turns out that is not the way to keep your members coming back!
Action Steps to Try This Month
- Audit your data: What’s helpful? What’s just noise? Do you need to link it with other information to unlock its power?
- Define customer outcomes: Don’t just ask what you want to measure, ask how it helps you to do something differently to better serve your customer.
- Create one new personalised touchpoint: A custom thank-you email, a proactive support note, or a tailored onboarding message.
- Choose one relationship metric to track: Pick a single measure to follow that gives you insight into engagement, referrals, or loyalty and start tracking it as closely as you do clicks and likes.
Wrapping It Up
Customer data is only powerful if it helps customers feel seen, understood, and valued. Used wisely, it can transform surface-level interactions into long-term relationships.
This week, try adding one small personal touch based on your customer data, even if it’s as simple as a thank-you message.
👉 What’s the best little personal touch you’ve ever experienced as a customer?
