First-party data is imperative for the success of every business. You might receive tons of data each day from different departments. However, not all of them are important for your organization. It is, therefore, essential to adopt the best collection practices to keep your data simple and relevant. Let’s take a look at 7 data collection tips that can prove to be extremely high-yielding for your business.
- Identify the Right KPIs
One of the most challenging steps in data collection is identifying the right KPIs (Key Performance Indicators) for your goals. Selecting the wrong metrics to measure your data will lead to failed opportunities. You will not only waste your time and money but also lose potential cliental data.
For instance, you might want to measure sales, so your key metric should be CPA (Cost per Acquisition. Keeping CTR (Click-through Rate) as KPI here will give you false readings as it will also include people who clicked on your ad without making any purchase. Thus, planning the right metrics before data collection may avoid misleading information about your customers.
- Spot the Best Data Collection Tools
There are dozens of data collection tools available worldwide, each having its database system. No matter what tool you choose, you need to store information under a column called a field in a database. In addition, you must know what type of data can be added to those fields to ensure efficient data management.
For example, a Content Management System (CMS) may have fields regarding marketing. However, it may not be a good option for the Human Resource Department. Therefore, you should keep in mind your business goals before investing a considerable amount in purchasing data collection tools.
- Manage Your Data Efficiently
A successful data collection is largely impacted by how well its worksheets are maintained. Every department aims to keep its business data simple and clear. However, they will fail to do so when bombarded with tons of information each day.
Most companies use excel sheets to upload and manage statistics, and though this may seem like a convenient procedure, updating and managing the sheets daily or even weekly is exhausting. Also, most departments keep a stack of data that is of no use to them.
A good practice is to use systems that you can easily update. The management systems allow you to keep your information up-to-date. It also provides access to the authorized people for remote operations.
- Audit Your Data Periodically
The high fluctuations in the market accompanied by ever-changing technology mean that most of the data you have now will be futile after six months. Checking and updating data at frequent intervals is an excellent practice for improving data collection.
In the marketing department, the real-time data of your potential customers will help you retarget and measure conversion. In Finance, the updated data is a key to inventory management, budget allocation, and expense calculations. Synchronized information is also beneficial for the Human Resource department in measuring the turnover ratios, employees’ performances, and performing appraisals.
- Consider who will view the reports
The company can acquire reports once you have implemented data collection and analysis systems. Therefore, identifying who will be reading and evaluating the reports is essential. You must also know what information is most important to them.
Do they want to know where your customers are from, or do they want to know their interests? Are they asking for customers who filled the form on your website, or are they especially asking for those who bought products or services from you?
Each audience will value information differently. So be sure to figure out what data is considered relevant by the team who will review your reports and then filter your stats accordingly.
- Ensure Data Encryption
Data encryption is a crucial part of your data collecting process. For example, you may have extensive data regarding your customers, employees, and partners, which may need encryption. Potential hackers are always on the lookout for existing data of the companies to sell them to your competitors or blackmail you.
One of the best ways to keep your data secured is establishing a data backup system via cloud computing. Cloud technology is favored by most businesses because of the availability of extra space whenever needed. Also, you can access your data from anywhere in the world, provided you have the required credentials for it.
Other data encryption methods include saving data in external hard drives or USBs. However, these are traditional methods and may not prove helpful for your business.
- Try Automation Software
If you are a medium or large enterprise that needs constant data feeding and analysis, automation software might decrease your workload two-fold. The AI system allows you to feed your paperwork into the software and translate it into meaningful insights. It also reduces human errors and redundancies associated with manual input. Some automation software allows you to transfer your data from one app to another. Additionally, you can save the data into your system for a long-time without keeping stacks of papers on your desk.
The use of automation software is not limited to large businesses only. You can also use these tools if you are a startup or a small corporation, as they may streamline your workflows and increase the efficiency of your tasks.
Are These Tips Useful for Startups?
If you are a startup, adopting these practices from day one may prove highly beneficial. Define your business goals clearly, and then align your KPIs with them. Ensure you have the right tools and systems for data collection and management, streamline your workflows and ensure auditing your process periodically.
Adopting these tips will help you receive your first-party data faster. It will also help you optimize your strategies, leading to progressive growth in the future.
Final Thoughts:
No matter the type or size, efficient data management is crucial for the growth of your business. Hiring someone to manage and optimize data is a good option if you are a small corporation. However, if you are a medium or a large organization with multiple departments, data management software is a smart choice.
