This is obviously preaching to the already converted, but where independent retailers really thrive is offering a specialist, expert service to their customers. And smaller businesses are built on this reputation.

But independents also have a somewhat underused tool at their fingertips – customer data. When collected and used effectively, data can help you understand your customers, personalise their experience, and maybe even drive repeat business.

So, where do you start? From capturing customer emails through enquiries to keeping note of preferred products and styles, let’s walk through the essentials of collecting, storing, and using customer data responsibly.

In the 2024 kbbreview Retailer Survey, 79% of independent KBB retailers said their customer enquiries and footfall were either down or stayed static. However, it’s worth noting that in the same survey, independent retailers really proved themselves experts at closing the deal. An impressive eight out of ten retailers (81%) said their conversion rate was between 50% and 100%.

This highlights the importance of making every touchpoint with your customer count. As The Tap End’s Justine Bullock says, it’s a great tool for promoting the business. “We request and record as much information from prospective clients as possible. The very first step for us is getting the client to fill in a consultation form, and one of the very first questions we ask is how they heard about us.

“This information alone helps inform our marketing and advertising decisions, and it is such a simple thing to track. We have a spreadsheet that we update from each client’s consultation form. It quickly allows us to pull data and any given time, and it includes everything from location, budget given, and actual spend.”

Similarly, Dave Jarvis from Albion Bathrooms Kitchens Electricals details exactly how his business utilises data: “We keep all quotations for three years after production. Sometimes a customer will come back to us, even after this extended period, to revisit and place their order.

“We benefit from knowing exactly what we have sold to customers should they have an issue with a product. It’s also protected us in the past from customers who claim to have purchased items from us to gain spare parts, but our information tells us they did not.”

And how do our expert retailers stay compliant when storing data? Bullock says: “We are aware of GDPR and we make clients aware that the information given on the consultation form is stored and held to assist the business in decision making moving forward.

“We also request client permission if we ever post about their project online or on social media, and we never disclose names and addresses online, or on social media.”

Jarvis warns that retailers must ensure compliance with data handling regulations so as not to fall foul of a data breach. “Make your customers aware what their data will be used for and how long it will be stored,” he advises. “Use the data wisely and don’t over burden the previous customers with ‘death by email’. The Information Commissioner’s Office (ICO) website is a great source of information, which is all free.”

10 tips for using customer data

With great data comes great responsibility – keeping it safe and using it the right way is just as important as collecting it. Here are 10 simple tips to help you safely and effectively handle your customer data (without getting tangled in techy jargon or legal nightmares).

Collecting data…

1. Only collect what you need. It’s tempting to grab as much information as possible, but more data means more risk (and more hassle). Stick to what actually helps your business – things like contact details and details of the brief.

2. Be upfront about it. Nobody likes sneaky data collection. Let customers know why you’re collecting their info and how it benefits them. Whether it’s for sending discounts or improving your services, honesty builds trust.

3. Use secure forms and payment systems. If you’re collecting emails, addresses, or payment info, make sure it’s done through secure, reputable platforms. Use trusted systems and ensure any contact forms on your website are encrypted.

4. Follow the rules. Laws like the GDPR are there to protect customers. Make sure you’re getting consent when needed and only storing data for as long as necessary.

Storing data…

5. Keep it safe and locked down. Think of customer data like cash – you wouldn’t leave it lying around. Use password-protected databases, cloud storage with encryption, and security tools to keep prying eyes away.

6. Limit who has access. Not everyone in your business needs access to sensitive customer information. It’s not about distrust, just limiting risk. Keep it on a need-to-know basis, so only certain team members can view or edit it.

7. Back it up regularly. Imagine losing all your customer info overnight – nightmare! Regular backups (automated if possible) make sure you’re covered in case of system failures or cyberattacks.

8. Stay cyber-savvy. Hackers prey on small businesses because they assume you’re an easy target. Prove them wrong and protect your business (and data) by using strong passwords, firewalls, and multi-factor authentication (MFA) to keep your data safe.

Using data…

9. Make it personal. Customers appreciate a personal touch, like emails with product suggestions or a reminder of what your business can offer. But don’t go overboard as nobody wants to feel like they’re being stalked online.

10. Clean out old data. Holding onto outdated or unnecessary customer information isn’t just risky, it clutters your system. Delete what you don’t need and keep your data fresh and accurate.

Handling customer data the right way keeps your business safe, legal, and customer-friendly. Plus, when you show customers you respect their privacy, they’re more likely to trust (and work with) you. Take small steps today, and your data game will be strong in no time.