Everyone is making data mistakes – most without realizing it. Our data has never been more vulnerable online. In Q4 2023, more than eight million records worldwide were exposed by data breaches. And if you’re a business, there’s a 50% chance your data will be next. Read on to learn about some of the most common data mistakes B2C brands make.
Overlooking Data Hygiene
The most significant mistake made by B2C firms is a failure to practice data hygiene properly. If you don’t know what data hygiene is, it’s basically a strategy to keep an online presence safe. And it’s not just safety; it’s ensuring data is accurate, complete, and up-to-date. Brands can also regularly remove data from Google and other search engines for optimum online data hygiene. Poor data hygiene may lead to endless problems, including misinformed decision-making, ineffective marketing strategies, and customer dissatisfaction.
For many brands, maintaining clean data proves difficult since they lack standardized processes for entering and managing it. Duplicate entries, outdated contact information, and incomplete records are major issues.
The solution? Regular data audits should be conducted by organizations, along with guidelines on how employees should enter information and automated tools for error detection and correction. Our list could go on. Staff training concerning why they should ensure good hygiene and best practices would greatly improve the quality of their organization’s database.
Businesses should develop a culture that values data quality. That means putting systems of responsibility for those responsible for feeding into or handling it, regularly updating and verifying information by team members, and integrating hygienic principles into the overall business strategy.
Ignoring Data Privacy Regulations
Disregarding regulations surrounding personal data privacy can be an expensive oversight. And by expensive, we mean the average cost of a data breach for a small brand per breached record is $164. You only need the stored data of 100 customers for that to be bad for a small B2C brand.
Examples of rules include GDPR (General Data Protection Regulation) in Europe and the CCPA (California Consumer Privacy Act) within the United States, which contains stringent instructions about individualized data management required by corporations.
However, despite the clear risks, some businesses fail to prioritize data privacy. That’s usually a result of inadequate knowledge regarding regulations or underestimating their importance. But now you know the price tag, would you underestimate it?
To avoid this mistake, brands must remain updated on any privacy laws that may be relevant and ensure that their data collection, storage, and processing practices are by them.
Misinterpreting Data Analytics
Another error made by B2C businesses is a misinterpretation of data analytics. A good interpretation can lead to effective strategies, while a wrong interpretation might lead to misplaced business decisions. Relying on vanity metrics or lacking expertise in data analysis causes this problem.
If they’re not linked to actionable business goals, e.g., the number of social media followers or website visits, vanity metrics could be misleading. For example, there may be many individuals visiting a particular site, but this doesn’t mean an increase in sales or client satisfaction.
To overcome this trap, companies must focus on metrics aligning with key performance indicators (KPIs) and business objectives like customer lifetime value, conversion rates, or customer retention rates.
Hiring competent data analysts or training the existing ones can improve the accuracy and efficiency of insights derived from data. Brands can also outsource it online to marketing companies. They should also apply advanced analytic tools to their operations to unlock deep insights into their business, leading to a more informed decision-making process. Again, brands can outsource that, but it is relatively easy to understand.
Do you think B2C brands are taking too many data risks? It’s essential for B2C businesses looking at maximizing data that these common mistakes are avoided. Or, at the very least, avoiding data mistakes is vital for brands who don’t want to get caught up in the cyber attack storm that just isn’t quitting.