We live in a world drenched in data.
Every time you purchase something online or have a conversation with a customer service agent, you’re generating more data for an ever-growing pile.
On the one hand, this is good news for companies. Collecting more insights means that you can gain a competitive edge over the other brands by giving clients what they really want.
Data drives better decision-making and improved return on investment.
On the other hand, the vast amounts of data that we deal with every day also mean that we’re more exposed to potential issues that could lead to problems with everything from broken compliance laws to lost customer trust.
Here are some of the biggest data-related mistakes that could ruin your business.
Collecting the Wrong Kind of Data
Quality matters far more than quantity when it comes to data collection and management.
Collecting the wrong kind of information from your users means that you end up with expensive data servers filled with information you’re not going to use.
To ensure that you’re collecting the right information, start by setting goals for what you want to accomplish with your data analyses.
For instance, do you want to learn more about the customer journey, or make your internal processes more efficient?
Next, think about how you can align your data collection and storage systems for better accuracy.
A good solution for data management and storage will reduce the number of duplicate records, incorrect details, and unnecessary extras in your data banks.
Not Leveraging Data Correctly
Most companies know that data can be a powerful tool in development and growth. Unfortunately, they don’t know how to use the information that they have.
There’s more to data than allowing it to collect in your repositories, untouched and underutilized.
You should have a clear plan in place for how you’re going to transform huge amounts of information into actionable insights.
Setting a few guidelines and best practices for data analysis helps you to make the most of the trends and insights your information can offer.
Your team should have a good idea of which metrics they’re looking for and know how to share valuable data with the rest of the workplace.
You might even decide to hire a specific professional to deal with your information for you. This person could be responsible for tracking the efficiency of your entire system.
Being Negligent With Data
There are a variety of ways that companies can be negligent with their data. Not having the right guidelines in place for your employees so they know how to use information safely is a common issue.
Failing to organize insights into actionable chunks is another.
The most problematic type of negligence involves not caring properly for your customer information.
Today’s companies are held to strict standards for information protection, particularly when it comes to sensitive and personal details. If you don’t have the right systems in place to maintain compliance, you risk not only your client’s safety but your brand reputation too.
Negligence with data can lead to serious breaches that cost a fortune in criminal management and fines.
Even if you can rectify the issue without causing too much of a disruption in your business, there’s a chance your clients’ trust will be irrevocably damaged.
Failing to be Transparent about Data
To stay ahead of the curve with data compliance, you need more than just the right strategies in place to protect the information you receive.
Guidelines like GDPR dictate that today’s customers should have more control over the way that their personal details are collected and stored.
It’s up to you to be transparent about your practices, or else you risk losing your customers.
The good news is that most clients don’t mind sharing their information if they know it’s going to lead to a more convenient and relevant experience.
If you’re clear about how you’re going to use certain details from day one and follow the regulatory rules, you should be safe.
Not Providing Data Security Training
Unfortunately, though your employees are some of your most vital assets as a business owner, they’re also some of the most problematic when it comes to data.
The majority of breaches that happen in the current landscape come as a result of some internal issue or mistake made by a professional.
Unfortunately, just one small mistake can be an open door for a hacker or criminal.
To protect your business and your employees, make sure that every team member receives the right training on how to protect themselves, and the data that they work with.
Every employee should be equipped with security best practices, as well as insights on what to do next when problems occur. A disaster recovery plan will help get your business back up and running again as quickly as possible after a breach.
Protect Your Data
Data remains a crucial asset for any business. It can be the key to your company’s growth – but only if you know how to leverage it correctly.
The tips above should help you understand some of the most common challenges that companies face with their data strategies, so you can avoid the traps.
Be cautious and strategic about your company’s data strategy, and you’ll be able to uncover the benefits of information, without the unwanted side effects.
I am a passionate blogger sharing business tips. I write primarily on SEO, Email Marketing, CRM, Marketing Automation and covers the entire gamut of marketing.