For companies to succeed, they must be able to deliver value to their customers. This entails having a deep understanding of their clients' needs and interests by collecting and segmenting customer data. However, they should first ensure that they are compliant with data privacy laws to avoid corresponding fines and penalties.

Customer data offers an insight into information such as customer demographics, behavior, and preferences, enabling businesses to create quality products and positive experiences that will cater to their client base. But it’s not enough for a business to collect customer data — it must collect data that is useful and relevant.

Businesses have more access to customer data than ever before, and that trend will likely continue in the future. The insights you get from all that data are valuable. However, a lot of data is unnecessary or possibly even problematic. To ensure your insights are relevant and useful, you must have a well-defined data collection system in place.