How to collect and store customer data while remaining compliant
As a business owner, collecting and managing customer data can be a daunting task that requires in-depth knowledge of various methods of data collection, secure storage, and compliance with the laws in the UK. This article aims to provide a detailed breakdown of the data collection process, the different methods available, and best practices for storing and managing customer data securely and in accordance with legal requirements.
By the end, you’ll have a better understanding of how to manage your customers' data effectively, whilst ensuring compliance with all relevant regulations.
Data collection methods you need to be aware of:
Surveys are a great tool to collect customer data because they are completely customisable, allowing the ability to ask specific questions with targeted responses. You can create surveys to use online or in-person to gather data on customer preferences, opinions, and demographics.
Customer feedback can provide valuable insights into their pain-points, satisfaction and possible improvements by utilising email communication, social media and phone calls.
Website analytics allows you to track more than sales, you’re also able to obtain valuable data around how your customer interacts with your website. This includes data such as pageviews (how many pages they visited), bounce rate (those who leave after visiting one page), and time on site (how long they spend during each visit).
Purchase history data provides a wealth of insights into customer behavior, preferences, and purchasing habits. Depending on what platform you use for your business, this data should be easily accessible and used to potentially predict what offers to share.
Social media will allow you to gather data about customer engagement, mentions, and overall view of your brand and products.
By collecting customer data you are positioning yourself to make better decisions whilst increasing competitiveness and profitability.
Storing and managing customer data you’ve collected:
Security: Store customer data securely to protect against data breaches and cyber attacks. This includes using secure servers and encrypting sensitive data in a central location. It is best practice not to store data across multiple platforms/tools to reduce the risk of losing access or forgetting the data exists.
Access: Limit access to authorised employees only on a need-to-know basis. Using a password management tool can boost security, use complex passwords as well as update these on a monthly or quarterly basis.
Consent: In order to collect and store customer data, you must obtain their consent. This includes providing clear and transparent information about how their data will be used and providing the option to opt-out.
Accuracy: Maintain accurate and up-to-date customer information. To do this regularly update customer profiles with new data and remove outdated or incorrect information.
Retention: Customer data should only be retained for as long as necessary to fulfil the purpose for which it was collected. This includes regularly reviewing and deleting outdated information.
By storing and managing customer data safely you can protect their privacy, build trust and loyalty, and boost business performance.
UK laws to be aware of and adhere to:
The General Data Protection Regulation (GDPR) governs data protection and privacy for all individuals within the European Union (EU) and the European Economic Area (EEA). It applies to all businesses that collect and process personal data from individuals within the EU and EEA.
Data Protection Act (DPA) regulates the processing of personal data. It applies to all businesses that collect and process personal data in the UK.
Privacy and Electronic Communications Regulations (PECR) governs electronic marketing communications. It requires businesses to obtain consent before sending marketing communications via email, text, or other digital means.
To remain compliant with these laws and regulations, it's important to obtain consent before collecting and storing customer data. As mentioned previously, this includes providing clear and transparent information about how customer data will be used and providing the option to opt-out at anytime.
