Collecting data from your customers makes it possible to provide targeted and relevant information which without doubt is a good thing. But a pitfall in segmenting is overdoing it and collecting the data just because you are able to.
The example above shows a collection of customer data that pins out several issues to be aware of.
Low conversion rate
In far most cases the fewer customer data you require, the higher conversion rate you will get. The extra value you expect to gain from collecting extra customer data should therefore always be weighed against a lower conversion rate.
Where is the value for the customer
Another problem in collecting extensive user data is not proving the value to the customer for giving up his personal information. Retrieving segmentation data from your customers should be accompanied with proving the value to the customer. If you in this contract with the customer are able to prove valuable customervalue for giving up their personal data you could actually improve your conversionrate even though you add extra inputs.
How often are you able to deliver 100% relevant information
Finally if you are able to deliver relevant information, frequency in your communication can become scarce. If multiple customersegmented rules have to be met for the information to be relevant to the unique customer dialogue can become your rare. In this case I would prefer to have a 80% relevant dialogue with my existing or potential customers every 14 days than having a 100% relevant dialogue every third month.
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