How Much Data Collecting is Too Much?

With the increasing reports of data leaks, people are becoming wary of sharing their information for good reasons. As business owners, the relevance of data we are collecting from our clients and efforts in protecting them is crucial.

There is so much information we could collect. However, the next question to ask is, what are the benefits of collecting client’s information, and what are we going to do with it? Below we share a few best practices to protect our client’s privacy and prevent losing our client’s trust.

Don’t Be Creepy

It is acceptable to collect data if our clients permit us to do so. As long as we use it in the way we have told them we would. If asking for a client’s address so we can mail special offers to them, that’s reasonable. Asking their birthdays so we can give gifts, that is cool, provided we make good on our promises.

Personal Data Protection Commission Singapore (PDPC) has gone into effect, and we should pay attention to stricter consent requirements. Consent must be explicit and verifiable — increased rights for individuals concerning how their data are used. More transparent data-use information, businesses must provide information about how they plan to process or use personal data.

What are the Most Valuable Client Data?

For hair salons, the standards are email, address, age, profession, gender, and birthday. To up our retail game, the most valuable data we can collect is our clients’ transaction history: what they buy and how often.

Ask only for information you know you will use. Since people often abandon forms that ask for too much. Or they don’t understand why a business is asking for them. Also, the last thing we want is to annoy our clients by asking too much information, especially during check-in.

What are the Best Ways to Use Client’s Data?

There are many ways to leverage customer data; we can use it to share discounts and exclusive offers. We can use it to have conversations with our clients. We might even take the data collected from surveys or quizzes to create new services that our clients are interested in. Or you might use the data to create targeted advertising campaigns.

Lastly, are you trying to know your clients better to offer the services that will improve their lives? Like some companies do with its “recommended for you,” messaging? Or are you collecting information so you can “share” them as some dishonest companies did? Remember, when clients share personal information with you, they’re taking a leap of faith that you won’t lose it or abuse it. They’re trusting you not to spam them every five minutes or make their personal data vulnerable to hackers.