In the fast-paced world of business, especially for those operating online, the importance of customer data can sometimes be overlooked. However, Ben Billups, the founder of NOBLE Digital, recently shared insights that could change the way companies view their customer information. Speaking on the eComm Chats Happy Hour podcast, Ben emphasized how crucial first-party data is for brands, calling it an “asset” that’s often undervalued, particularly by e-commerce businesses.
Ben explained that customer data isn’t just order history, phone numbers, and emails; it’s a valuable asset that can significantly influence a company’s future. Imagine, he says, looking down the road five, six, or seven years, and the difference between having a hundred thousand emails versus one or two million in your database. This isn’t just about having a bigger list; it’s about the immense value these numbers add to your company’s worth. In the event of selling your business, having a vast database can substantially increase its valuation.
But what if things don’t go as planned? Ben brought up the example of the activewear brand Bandier, which, facing financial difficulties, chose to sell its assets, including customer data, to avoid bankruptcy. This move underscores the value of customer data not just in the best of times, but also as a lifeline in challenging periods. Even when a business is struggling, its customer data remains a valuable asset that can provide a much-needed financial boost or a pathway to recovery.
For businesses looking to secure their future, Ben advises starting early with data collection and management. It’s about laying a foundation for growth that many overlook in the rush for immediate results. Building a comprehensive database of customer information is an investment in your business’s longevity and value. Ben’s message is clear: don’t expect miracles overnight, but understand that every piece of customer data is a stepping stone towards a more secure and prosperous business.
Ben Billups’s insights offer a valuable perspective for any business operating in the digital age. Viewing customer data as a critical asset and investing in its growth from the start can set a company apart, ensuring not just survival but a thriving future. Whether it’s leveraging this data to enhance business valuation or as a safety net in tough times, the message from NOBLE Digital’s founder is a call to action for businesses to rethink their approach to customer data. In doing so, they not only safeguard their immediate interests but also pave the way for sustainable success in the ever-evolving world of e-commerce.
