What Do I Do With All This Information?

We spend a great deal of time collecting data. Data itself remains a primary talking point within the marketing industry. We’re all supposed to be amassing this massive cadre of information about our customers, potential customers and competition. 

Data on its own is meaningless. It’s a lot like dumping a pile of topsoil on your driveway. The topsoil has the potential to grow trees and gardens, but unless you know how to use it, it’s simply a pile of dirt.

The goal of any commercial venture is to put boots on the ground. Your business needs customers. Whether it’s orders placed through your website or foot traffic in your brick and mortar location, this goal hasn’t changed much since human beings began selling things to each other. Our ability to collect copious amounts of information is supposed to help us achieve that goal. Instead, most of us ignore it.

If you’ve been in business for any length of time, you’ve likely been approached by many companies scaring the living daylights out of you by warning that your business isn’t collecting enough data. But how much is enough? And how in the world do you begin to sift through it all?

DATA NEEDS TO SERVE A PURPOSE

This statement seems on the surface to be ridiculous. Of course data needs to serve a purpose. But for most of us, we’re collecting data simply because we can and we’ve been told we should. Every piece of data you collect should have an end point. Why else are you collecting it? Data doesn’t lie. It shows us where we’re succeeding and, more importantly, where we’re failing. Data is only a pile of topsoil until we use it for planting. 

DATA ALLOWS YOU TO SEE TRENDS

One of the primary uses of data is to view trends. A product-driven organization can see clearly and almost instantly what sells and what doesn’t. Information organizations such as news sites and entertainment companies can spot trends and provide content that is most desirable for their audiences. The types of trends your data can show depends on your business. From straightforward data trends such as abandoned shopping carts to where a user drops off your website, to more complex data algorithms that monitor traffic patterns, peak demand and negative feedback, there’s a tremendous value in data. 

For people who slept through algebra class, data analysis can seem daunting. Analyzing data is a learned skill. It requires an analytical mindset. Part of the fun of data analysis is looking for the obscure. Data isn’t only derived from inbound marketing. If you’re going to follow a transaction life cycle, you need to have information for the whole cycle. That includes your outreach (your advertising campaigns), behavior during the transaction, questions or comments during an online chat or through your sales staff, sales data, customer reviews and comments, and product defects and returns. Your business may have different touch points. Effectively using your data requires you to understand where these touch points exist. 

DATA COLLECTION OFTEN INFURIATES CUSTOMERS

Your customers watch the news. They read things online. They’re acutely aware that data breaches are an everyday occurrence. They’re becoming reticent to provide too many details. If you request too many private details, things like a Social Security number, a CVV code on a credit card, mother’s maiden name, etc., you will lose sales. There are many situations where confidential information is required. Customers used to provide that type of information willy-nilly. Today, requiring too much identifying information often leads consumers to search elsewhere. The decision process happens quickly. Too many questions, too many details, customers will abandon you.

Many companies try to harvest data that has little or nothing to do with the transaction taking place in order to fatten their marketing outreach. We build email lists in order to bombard our existing customers with promotional material. There’s a thin line between customer engagement and customer abuse. Do you really want to send e-blasts to customers who have no interest in what you’re promoting? 

BE WARY OF STORING TOO MUCH OF IT

If the NSA, the IRS and the Defense Department computers can be hacked, trust me, so can yours. The law regarding responsibility for the inadvertent release of personal data is still catching up with real life. At some point, one of the lawsuits by consumers against companies that have been hacked will stick and precedent will be set. But whether or not your company bears legal responsibility for data breaches, your company will have to answer to the consumer. It may be through customer boycotts or even through increased costs to implement extreme digital protections. 

How much data do you need? How much of it do you need to keep? How long do you need to keep it? What are you planning to do with it? Each of these questions needs an answer. If your business can’t answer these questions, it’s time to seriously look at the information you’re collecting.

DO SOMETHING WITH IT

You have at your fingertips the type of information Don Draper could only have dreamed about. Unless you use the data, there’s no reason to have it. Use your data to take action. If data trends are telling you that Product X is doing well during the ordering process but has a 45% defect rate, you should be focusing on improving Product X. If you regularly see negative comments regarding a particular portion of the consumer experience, maybe the wait time to place an order or lack of knowledge by the customer service team, that tells you that you need to target those particular weak points. Data tells us what’s happening. But it requires us to learn how to read it. And it requires that we have the desire to make the types of changes the data suggests.

Nobody’s perfect. Every business can improve. You have at your command enough information to figure out where you need improvement. You also have enough information to learn what other information you need. What pieces of data will allow your business to make educated decisions? What do you need to know? Why do you need to know it? Those are the questions you should be asking when you’re thinking about data collection. After all, who wants a giant pile of topsoil sitting in their driveway forever?

When To Lawyer Up

The old joke goes; "What do you call a thousand lawyers at the bottom of the ocean? A good start." That might give you some indication of my bias when it comes to the question of litigation. The way I run my business doesn't tend to lend itself well to suing people. If I sue my clients, they don't come back. The thought of it makes me uncomfortable, because I'm a firm believer in trying to work things out amicably.

I've discovered, as you likely have, that this doesn't always work out in business. There are times when something happens, either through no fault of your own or by some accident, that you come face-to-face with civil law. Maybe it's debt collection, maybe it's contract enforcement, maybe it's something you built or produced that didn't work as expected. Whatever the reason, there's a time and a place to lawyer up.

I've known some business people whose first reaction to any situation is to come with both barrels blazing. I've known others who just roll over at the first sign of confrontation. Both extremes don't solve the problem. Perhaps you're wondering why a marketing blog is talking about lawyers and litigation. Simple. All customer interaction is marketing. Any type of litigation usually means you've exhausted your other options, and the client in question will no longer be doing business with you. There are dangers in jumping the legal gun, just as there are dangers in doing nothing. There are certain key areas from a marketing perspective that demand litigation as a last resort.

DEBT COLLECTION
Marketing? Really? Look at it this way. If you don't have cash flow, you don't have anything to market. Your cash flow directly affects how you run your business, from payroll to inventory to whether or not you make a profit. Suing someone for uncollected debt is a process with multiple, time-consuming steps with no guarantee of success. It's also public. There are many ways to mitigate legal action, most of which start with a good plan at the beginning of the relationship. Like a prenuptial agreement, a strong contract with expectations clearly spelled out, timelines set and remedies specified will show a prospective client that you are a serious business person. Drafting a contract is one thing lawyers do very well. This is an expense that will pay for itself many times over. More often than not, tardy or aggressive clients will back down with a strong contract on your side. The more solid your footing, the more easily you'll be able to collect money or solve client misunderstanding. If there's a benefit to you, consider offering an early payment discount. Add penalties for late payment. As with everything in your initial pre-nup, state it clearly. When you are faced with a slow or non-paying client, consider first the amount, the reason, and the length of the relationship. What percentage of your business does this client represent? Is an invoice for $100 worth jeopardizing your $100,000 client? And remember that you get farther with a gentle nudge than a swift kick. Invoices get lost, payables get delayed. Sometimes being the persistent squeaky wheel will move something forward. Using the legal system to collect debt should be your last resort. If everything else fails, this is the second time to contact your lawyer. An overwhelming majority of a lawyer's work is drafting documents, not actually suing people. The threat of legal action will often prompt clients to pay. Keep in mind that this will likely sever your relationship with the client. Use it wisely.

SLANDER, LIBEL, DEFAMATION
We live in an age where anybody can say anything about anyone, anywhere at any time. The web makes these types of negative comments permanent and nearly impossible to get rid of. Most of us have to shrug off a lot of these types of negative comments. Where the line is drawn legally is when slander, libel, or defamation take place. The trick is proving these have taken place. In the broadest possible terms, defamation is something about you or your business that is untrue and has the potential to cause damage. Slander is telling someone, libel is writing it down. Now, as any good lawyer would advise me (and you), I'm not a lawyer. Consult with one if you believe you or your business are a victim of this. From a marketing point of view, defamation and its two cousins are potentially devastating. It's important to monitor any information shared about you or your company on a regular basis. Monitor your social media, as well as your competitors'. If you believe defamation of some sort has occurred,  and can pinpoint the source, this is time to lawyer up. The first step is usually a "cease and desist" letter. Most of the time, this does the trick. A letter from a lawyer can be scary. If it doesn't stop the offensive action, your lawyer will be able to recommend an appropriate course of action. From a marketing point of view, keep the end in mind. Will going after someone who is venting worth any sort of negative publicity your company will receive?

COPYRIGHT INFRINGEMENT
This one is potentially the most damaging to your business. If you produce something unique, it's in your best interest to ensure no one copies it. Lawyers can help with copyright and patent registration, which is preventative medicine. Trademark your logo and your tagline. Place copyright notices on key marketing pieces such as your website, print collateral and signage. And don't be afraid of suing on this one. This is the only such infringement I would suggest running, not walking to a courtroom. Your business depends on your proprietary information. Defend it vigorously.

TRADE SECRETS
The same holds true for business processes, trade secrets and any type of information or documents unique to your business, that are essential for your business to remain competitive. Keep this type of information as close to the chest as you can. If employees need to know this information, having a confidentiality agreement (created by a lawyer) is your best prevention should someone become disgruntled and spill the beans.

Your business is sometimes like a battle. You have an arsenal of weaponry at your disposal. Using the appropriate weapon at the appropriate time will ensure the public's perception of you remains positive. If you have the reputation of throwing lawsuits around like a petulant child, you'll likely scare off potential customers. If you roll over and play dead, your business will tend to attract bottom feeders. A good lawyer is like a homeowners insurance policy - you'll likely never need it, but when you do, you'll be really glad you had it.