Yael Warman, Content Manager at Leverate, takes an interesting look at the importance of collecting and using data at Forex brokerages.
Data collection has become almost a buzzword across every industry and while collecting data may not be the all-telling, omnipotent power to guarantee your business’ success, information gathering does hold great power. Collecting data can help a business answer questions to things that may not be obvious.
Collecting data may not necessarily be an easy task. I mean it comes together with the responsibility of storing it safely, of treating it with respect and not spamming your clients nor selling it to third parties without your client’s consent and a whole other set of privacy pitfalls. However, the benefits of collecting data could impact your bottom line so greatly, that the benefits outweigh the risks and challenges.
The better you know your customers, the more effectively you can reach them. For Forex brokerages, data collection is already a process that is taking place due to legal requirements. All brokerages need to do is enhance the process of data collection in order to squeeze out relevant information and improve their marketing efforts. Below, I have gathered some truths about data collection that will help you ensure you get the most out of the process you already employ:
- As part of the sign-up process, even before conversion, you have gathered a trader’s name and e-mail address, so you can personalize the communication. This is a great first step.
- As part of the compliance process, you have gathered details about where they live and what they do for a living. Use this information to personalize offers and rewards that can help increase brand loyalty and boost sales. Imagine sending your client a voucher for the most coveted restaurant in his hometown? Wouldn’t that show your client you care about him/her?
- As you establish trust with your client, train your sales personnel to record new demographic and psychographic information they may learn, such as whether they have children or what their hobbies are. Sales personnel can come across very useful information while spending time on the phone with a trader. When a client says “sorry, this is not a good time, I’m about to pick my kid from soccer practice, call me back later”, he has given you valuable information. You now know he has children and his child likes soccer, so you can incorporate this information in your offerings (think two tickets to a soccer match in his hometown).
- Transactional data also holds a great deal of importance. Knowing when your traders deposit and trade, when they withdraw, what instruments they prefer and what their trading habits are can help you personalize your strategic advice. If you know your client is into trading gold and you see an indicator that it’s a perfect time to buy, sending a personalize SMS to your client enticing him to buy gold with the reason why, can boost your volume immensely.
- With time, you may find that SMS’ing your clients ensues an almost immediate response, whereas calling them pretty much guarantees you hitting their voicemail. Have your sales personnel note what the most effective way of contact is and use it wisely.
Leveraging customers’ data can help you offer added value to your customers and help you stand out from the competition, but overwhelming your customers by asking too much information can counteract your efforts. Learn to gather the information using alternative ways. Your official questionnaire during compliance will give you a wealth of information and casual conversation along the way can help you complement it, you just need to know what you are looking for and always keep your ears open. Catalog every piece of information and most importantly, use it. A lot of good sales people have learned to gather this information, but they never record it in a CRM, so if the sales person leaves your brokerage, he/she takes that information with him/her. If the information is recorded properly, then any new sales person can take over with a wealth of information about the trader that can be harnessed to boost sales.