We are often asked ‘What is my customer data worth?’
Three company directors from Merseyside have been banned for a combined 36 years for selling warranty cover to Sky customers for the maintenance and repair of satellite equipment.
At first, this might seem straightforward. They hadn’t been legally authorised to offer warranty support.
The Value of Profiled Customer Data
When we dig a bit deeper, we discover that there is a bit more to it. You see, the reason they were able to build this into a business that owed £12m when it went into liquidation is all about data.
According to the The Insolvency Service, ‘the trio unlawfully obtained and used Sky’s confidential customer database and misled people by suggesting a connection to the broadcaster.’
If you want to know the potential value of your own data, look no further than the money that this company were able to make from it.
Once you have some intelligence regarding the profile of a database, it enables you to deliver targeted marketing activity and ultimately convert these into customers.
I have no idea how many customers, they had managed to convince but based on the debts, it would be fair to assume that it is many thousands of people.
How can I protect my customer data?
Most data providers seed their data in order to protect their investment. If a third party manages to get a copy of the data, then quickly the seeds would be hit and this could be tracked. It seems that many companies however, don’t add the same protection to their own customer data.
This story underlines several points.
- Your customer data has tremendous in-built value. Maybe you need to think about how you profile this to generate increased revenue.
- Are you protecting that asset from third parties, competitors, employees and other threats.
- Have you ever even considered the power of data within your business?
Let us know what you think in the comments below.Share