Many retailers rely on data to drive business growth—but as privacy concerns grow and cookies phase out, adopting a responsible approach to collecting first-party data and respecting customers' privacy is the way forward.
As of 2023, 78% of brands considered first-party data the most valuable source for marketing personalization, up from 37% in 2022.
By gathering customer information through transparent methods such as website interactions and post-purchase feedback, you gain valuable insights into their preferences and behaviors.
This guide shares how to collect customer data and run a successful retail operation.
1. Leverage first-party data sources
First-party data comes directly from your customers. They share it with you, versus you getting data from outside sources like trend reports or providers like Acxiom.
There are a few common customer data collection methods for your store.
On-site interactions
Your website is a great place to start collecting customer data. Shopify's pixel manager allows you to add and manage pixels that track customer events, like:
- Page views
- Add-to-cart events
- Purchases
- Product page views
- Checkout events
This data gets fed into the customer's profile in Shopify, allowing you to better understand their browsing and purchasing behavior over time. Then, with Shopify Analytics, you can access various behavior reports to learn how customers navigate through different product categories, what they add to their cart, and time spent on each page.
For example, you could track when customers browse winter coats and scarves together. Then, using Shopify’s unified customer profiles, adjust product pages to show these items as a collection. This can lead to customers spending more time looking at curated collections and more purchases.
💡 By combining Shopify pixels with your other first-party data sources like transactions and email signups, you can build a dataset to power your personalized marketing strategies while maintaining customer privacy and data security.
Account creation and login
Encouraging signups during shopping helps you collect valuable information directly from buyers about their preferences and habits. Make account creation worthwhile by offering features customers will use:
- Save favorite items and shopping lists.
- Track orders and manage returns.
- Access purchase history.
- Get personalized product recommendations surfaced to the customer’s account.
Keep the signup process simple. Ask only for essential details first, like email address, password, and an optional phone number.
Add more detailed preferences gradually as customers engage with your store. When you build useful account features, customers see the value in staying logged in and sharing their preferences.
Don’t just ask for data±give real value in return. A 2022 Forrester study found that while 36% of US online shoppers say nothing would motivate them to share information, 31% respond well to cash rewards and 22% are motivated by loyalty points.
Transactional data
Your checkout process is a customer data collection point that is often overlooked. Transaction records reveal customer behavior data like:
- Purchase frequency and timing (like seasonal buying patterns)
- Average order value and spending habits
- Product combinations commonly bought together
- Preferred payment methods
- Shopping channel preferences (online vs. in-store)
It’s even easier to collect data with an accelerated checkout option like Shop Pay. Shop Pay transactions provide richer customer insights, showing 19% higher average order values than other checkout methods.
Shop Pay is available both online and in-person via Shopify POS, which helps to turn physical retail locations from a data abyss into one that can turn guest customers into known customers that can then be retargeted.
By providing detailed reports on sales and orders processed through Shop Pay, you can analyze customer purchasing behavior and the effectiveness of Shop Pay as a payment method. Understanding which products are frequently purchased using Shop Pay can help you identify popular items and tailor your product offerings to meet customer demand.
2. Utilize customer interactions
Feedback and surveys
Post-purchase surveys give you a direct line to customer insights. A well-timed survey right after checkout can tell you exactly what influenced their buying decision and how they found your store.
Here's what makes customer feedback surveys work:
- Keep them brief; 3-4 questions maximum
- Place them on thank you pages and order status pages
- Focus on specific aspects (e.g., "How did you hear about us?")
- Include rating options as well as open-ended responses
For example, you could set up a post-purchase survey through the Shopify App Fairing that asks different questions based on whether a customer is new or returning. The tool connects responses to customer lifetime value data, helping you spot patterns for how different customer groups find your store.
Fairing also connects to your Shopify setup via direct integrations:
- Direct sync with Shopify Orders data
- Connection to Klaviyo for email follow-ups
- Google Sheets export for easy analysis
- Shopify Flow automation options
- Works with Shopify's Order status and Thank you page Checkout extensions
A smart strategy is tracking net promoter score (NPS) alongside purchase data. This combination shows you not just what customers think, but also how their satisfaction relates to what they bought and how they found you.
Social media engagement
Pay attention to how people interact with your brand across platforms. Watch for patterns in the comments they leave, the posts they share, and the stories they engage with most.
For example, if you're a clothing brand and you notice customers frequently tag you in posts wearing your sweaters for casual outings rather than formal events, this helps shape your understanding of how people use your products. These natural interactions tell you more than formal surveys ever could.
Monitor:
- Comments and direct messages about specific products
- Popular hashtags your customers use with your products
- Which types of content get the most saves and shares
- Customer service questions that come up repeatedly
3. Optimize forms for lead capture
Email popups are an effective way to grow your email list and run marketing campaigns. A Litmus study found that email shows a return of investment of $36 for every dollar spent.
Shopify Forms is the easiest way to achieve this. With the tool, you can:
- Create multiple forms to build your list of marketing email subscribers
- Approve wholesale retailers
- Learn more about visitors to your online store
- Customize forms to control what information they collect and how they display in your store
- Add discounts to forms to incentivize customers to sign up for email marketing
Shopify Forms also integrates with the Shop app, letting customers automatically apply discount codes revealed through forms at checkout. You can also manage forms, view analytics, and link them to marketing automations using Shopify Flow.
Make the value exchange clear. Consider offering a discount for first-time signups. Your form should also state what shoppers will gain by letting you send messages to their inbox. For example, Colourpop showcases that you’ll be the first to know about deals, which makes customers feel like they’re part of an insider group and connected to the brand.
💡 Tip: Position your most important fields (like email and name) at the top, where they're more likely to be completed before form fatigue sets in.
4. Implement robust CRM and marketing automation tools
A strong customer relationship management (CRM) system can be your base for understanding customers. With Shopify, you can build detailed customer profiles that connect data from both online purchases and in-store visits. For example, when a customer buys running shoes in your physical store and later browses athletic wear on your website, your CRM captures both interactions in one place.
Western-wear brand Tecovas showcases this perfectly. They use custom extensions in their point-of-sale system to give store staff instant access to customer preferences and purchase history across their more than 30 locations. Staff can instantly see if a customer frequently buys a particular brand of boots and suggest new arrivals or complementary items.
Marketing automation takes this data and puts it to work. Set up automated flows that accommodate your customers, like sending a restock alert when a customer's favorite product returns, or crafting targeted emails based on past purchases. The data shows this works: brands using unified customer profiles see up to 20% more sales per order.
Your to-do list includes:
- Connect your CRM to your commerce platform so customer profiles update automatically.
- Set up automated workflows to capture data from all customer interactions.
- Create customer segments based on shopping patterns and preferences.
- Build marketing campaigns that use real customer behavior data.
- Track results through Shopify analytics dashboards.
5. Privacy and security compliance
Clear communication builds trust with shoppers and keeps you compliant. Tell customers which information you’re collecting, like email addresses, shopping preferences, or browsing history. Explain how you'll use the data to improve their shopping experience.
Shopify helps handle data protection rules like GDPR and CCPA through:
- Data processing agreements that spell out how data gets handled
- Built-in consent tools to get customer permission
- Secure storage and encryption to protect customer information
- Resources to help you stay current with privacy rules
For example, when a customer creates an account, use Shopify's consent tools to ask: "Can we save your preferences to personalize your shopping? You can change this anytime in your account settings." This straightforward approach keeps you compliant while making customers comfortable with sharing their information.
6. Analyze and utilize data for personalization
Smart personalization starts with understanding how your customers shop. When stores connect their customer data across all shopping channels, they typically see 9% higher revenue.
Your customers leave clues about their shopping habits with every purchase. For instance, say you run a shoe store and notice customers typically buy new running shoes every six months. This pattern becomes your roadmap. You can stock up on popular sizes ahead of time, send friendly reminders when it's time for new shoes, and create special offers for loyal customers.
You can also adapt your marketing campaigns for different customers. VAHDAM, an Indian wellness brand shipping teas and spices to over 130 countries, shows how this works in practice.
They faced a specific challenge: each region's customers had different preferences and buying habits. Instead of using a one-size-fits-all approach, they:
- Created custom pages for new product launches in each region
- Added region-specific checkout features
- Built personalized marketing for different audiences
- Used customer data to inform their expansion into new markets
The brand tripled direct-to-consumer revenue and improved checkout conversion by 25% thanks to these campaigns. The key was looking at customer data to understand how shoppers in different regions behaved, then building experiences that matched their preferences. This meant customers in the US saw different product recommendations and promotions than those in the UK or Canada.
7. Continuous improvement
Good data will evolve with your business and customers. Analyze your current methods. Look at which customer touchpoints give you the most valuable information. For example, if post-purchase surveys have low completion rates but provide good insights, try shortening them or offering small incentives.
Test new approaches regularly. You might want to:
- Try different loyalty program structures
- Test various account creation incentives
- Adjust your feedback collection timing
When making changes, focus on one area at a time. Let's say you're working to improve account creation rates. Set a clear baseline metric, then make a single change, like simplifying the signup form. Give it enough time to gather meaningful data, typically several weeks, before deciding whether to keep the change or try something different.
These incremental improvements, guided by careful observation and testing, build toward a clearer picture of your customer base and their needs. Companies that commit to this ongoing refinement process consistently see better engagement and higher sales over time.
FAQ on collecting customer data
How do you collect customer data?
You can collect customer data through direct interactions like purchases, account creation, and feedback surveys. You can also gather information through website behavior tracking, loyalty programs, and in-store transactions, all with proper consent and transparency about data usage.
How to collect customer data in CRM?
Set up your CRM to capture customer interactions across all touchpoints, including purchase history, support tickets, and communication preferences. Connect your CRM with your commerce platform and point-of-sale systems to build complete customer profiles that update automatically when customers interact with your business.
How to gather information from clients?
Ask customers directly through surveys, feedback forms, and during natural touchpoints like checkout or account creation. Create value exchanges where customers willingly share information in exchange for benefits like personalized recommendations, loyalty rewards, or improved shopping experiences.
What are the four types of customer data?
The main types are identity data (basic customer information), behavioral data (shopping patterns and actions), engagement data (how customers interact with your business), and attitudinal data (customer opinions and preferences). When combined thoughtfully, these data types help create a complete picture of customer needs and preferences.
