5 Steps To Build a Powerful Customer Database

First Party Data which is generated from your (potential) customers first-hand is much more valuable than data from external sources. High data quality, control over the data as well as the independence from third parties are only a few of the advantages of First Party Data.

However, many companies face the challenge of not having the correct data from all customers. Poor quality of customer databases translates into losses caused by ineffective marketing campaigns.

But how can you ensure high data quality? Check out our 5 steps to build a powerful customer database:

1) High-Quality Forms

High quality data starts with high quality forms. Make sure that all your data capture forms use validation mechanisms that ensure that the correct data format is inserted. Also remember to provide a description or placeholders in the form fields so that users know exactly what to enter in what way.
To ensure that a user enters a valid email address and that the email address actually belongs to him or her, we recommend a two-step verification process. In some cases, such as newsletter subscriptions, this is even required by law in most countries.

2) The Shorter the Better

The lower you design the entry barrier, the more willing your customers will be to enter their data. In many cases, a correct email address and permission to contact the user is enough to "get a foot in the door" and build a relationship with your customers or prospects.
So start small and request only the essential data at first. Once you have gained the trust of your customers, you can always follow up with a request for more data. They may be ready to give you more – and accurate - information.

3) Purpose Is Everything

Make it clear for your users why you collect the data and what you use it for. Point out what the customer can expect after the completion of the form and the added value of entering his data. In this way, you will build up the necessary trust so that the customer is willing to provide correct data.
If you have a wide range of products or services, give users the opportunity to indicate which products or areas they are particularly interested in so that the content remains relevant.

4) Check and Correct

Do you plan to use a postal address for the delivery of products or direct mail? If so, we recommend using a postal address check that validates, corrects and standardizes national and international addresses.
This will increase the quality of your postal address data and minimize the costs of undeliverable mailings. If the address data in your database is somewhat older, it may be worth comparing it with a relocation database.

5) Keep It Up To Date

Outdated data, incorrect data or uncontactable profiles are worthless for your marketing activities. It is therefore worth asking customers to check their most important data at regular intervals and correct them if necessary. In addition, you should regularly clean up your customer database to keep it at a high quality level.

You want more inspiration? Then read our 5 tips to get more newsletter subscribers!