Patient Approach Boosts Consumer Data Results

The key driver of success in consumer data collection is long-term thinking, says Paul Buta, COO of Optas, a company that provides the plumbing for other business’s consumer data harvesting. Unfortunately, Buta said, the typical tenure of a brand manager is 18 months, and he needs results in the next three months, so it is very difficult to get staff to think about lifetime value of a consumer relationship. Employees rush to get information, and develop shallow, opportunistic relationships with consumers.

This is true at every company Optas deals with including those in the health, financial services, pharmaceuticals and consumer goods industries, he said.

Give coupons to get data, and you’ll learn about consumers who are opportunistic and unlikely to generate profits in the long-run. Gather data slowly and patiently over a period of years and you’ll learn far more and from consumers who are valuable to the company, he said.

Buta offered a number of insights into how to cultivate a healthy long term relationship with consumers. Some of it is obvious, but bears repeating. Be honest. Be transparent. Ensure security of data.

Ensure that you really, really, really have the consumer’s consent to use data.  Many consumers don’t understand exactly what you are saying, so get multiple levels of consent. If the consumer doesn’t understand, it is your problem.

“The more time you offer people opportunities to opt out, the less likely they are to opt out of a relationship altogether. People want to feel in control,” he said.

Most importantly, be sure that you give the consumer some long term value for sharing data. Help him or her understand how his action will help you give him a better product or service.

Take your time and build trust. Like a marriage, don’t ask personal questions on the first date.

Don’t over-incent. Long-term relationships don’t need much incentive to share data - they trust the company and are more likely believe that it is trying to help them. In fact, with these consumers, a cash incentive to share data can decrease the likelihood that the data will be shared.

Paul Buta, COO of Optas: