Why do we collect data?

It seems like such a simple question, right? 

Yet when we actually sit down and try to answer it, we often find it’s much harder than we expect. 

Before we go any further, take a moment to think about the answer yourself. 

Just see what comes to mind when you ask yourself ... 

Whether it’s in regard to product data or personal data, why do we collect it at all? 

Got an answer? 

Great. 

Hold that thought and let’s see if we can work through the question and see how it compares to your answer. 

Indeed, you might say we collect data because we want to build up a more detailed and accurate record of things. 

Sounds about right and it’s a good answer. 

But as a thought experiment, let’s keep asking why? 

Why do we want a more detailed and accurate record of things? 

The answer to this initially seems a bit harder. 

We have to think for a moment, but then we remember … 

It’s so we can make better decisions. 

Another good answer. 

And it works: the more data we have, the more information we have … 

The more information we have, the better informed we are. 

The better informed we are, the richer the insight we can draw. 

The better insights we can draw, the better decisions we can make. 

This all makes sense. 

But let’s keep digging ... 

Why do we want to make better decisions? 

To be more successful? To make more money? 

Hmm. Maybe. But hold on. 

You see, this is where it’s easy to miss a vital step in the reasoning as to why we collect data. 

And I find, in my experience, this is where a lot of people lose focus on what really matters when it comes understanding why we collect data. 

You see, yes, you could say it’s so you can be more successful as a business. Ultimately, so you can make more money. 

And to some extent, that’s true. 

If you are able to make better decisions about the business, it naturally follows that the business will likely be more successful. 

But as I say, there’s something important we’ve missed out here. 

Can you guess what it is? 

If you said ‘customers’, well done. 

Because the step we’re missing —between making better business decisions and making more money—is providing a better service to the customer. 

This is fundamental as to why we collect data at all. 

We collect data to build up a more detailed and accurate record of things—whether it’s a record of the products we’re selling to the customer, or the customer themselves—so we can make better decisions that will serve the customer, and only then, make our business more successful. 

As I say, the most important part there is where we use the data to ‘serve the customer’. 

It’s key. 

So, how does that compare to the answer you’d thought about earlier? 

Hopefully it’s somewhere close. 

But most interestingly, did serving the customer feature in your reason why we collect data? 

Maybe it did—and great if so. 

But if not, that’s something to think about. 

Too often we forget that data is ultimately about the customer. 

Or more fundamentally … 

Data is about people. 

We should never forget that. 

Yet it’s so easy to get lost in systems and spreadsheets and to lose sight of the human element. 

That’s why it’s so important to regularly think, fundamentally, about why we collect data. 

And to remember that before we can use data to make more money or be more successful as a business, we must use it to understand and better serve our customers. 

Best wishes, 

Michael Lonnon

MDM Marketing Manager, Stibo Systems