Why Consumer Behavior Data Is Essential For Any Business
By: Anil Mathews, CEO, Near
In today's highly volatile markets, the long-term success of any business critically depends on two aspects - the ability to comprehend consumer behaviour and the competence to pique consumers' interests. These preconditions necessitate that in order to implement an ideal consumer engagement strategy and maintain profitability, businesses must clearly understand consumer behaviour patterns.
Until recently, traditional marketing metrics like clickthrough rates, open rates, and impressions were the only way to measure consumer engagement. But these metrics were like smoke screens that did not provide valuable, revenue-boosting insights. The pandemic however forced businesses to innovate at a faster rate than they had anticipated as consumer behaviour began to evolve rapidly. And, because innovation depends on data, the pandemic served as a turning point for businesses, forcing them to speed up the adoption of data analytics and insights in order to make informed decisions to overcome a challenging and rapidly-evolving environment.
The development of omnichannel marketing and the rapid expansion of e-commerce was particularly significant during this period as they opened up fresh data streams for businesses. These streams continuously receive data, which is almost instantaneously outpaced by new data. Thus, consumer behaviour data has emerged as an imperative to successful consumer-centric strategies.
Consumer behavior data can provide demographic information about the touch points that younger people prefer and the ones that other age groups prefer.
Now, it's a thing of the past when businesses worked with data silos to forecast trends because, in today's hyper-connected world of cutthroat competition, every second counts for businesses. A recent Microsoft study suggested that the average human attention span is only eight seconds, emphasising that if businesses don't reach potential consumers with the appropriate message at an appropriate time, consumers' memory might falter or they might move on to the next best option.
Thus, high-quality consumer behaviour data has become essential for businesses, and businesses must therefore keep up with data analytics to fully leverage robust data streams and utilise actionable insights to make strategic decisions. Consumer behaviour data provides insights into changes in tastes, shopping habits, and brand loyalty.
"A recent Microsoft study suggested that the average human attention span is only eight seconds, emphasizing that if businesses don't reach potential consumers with the appropriate message at an appropriate time, consumers' memory might falter or they might move on to the next best option."
Data has become an invaluable resource for businesses, as is evident from the fact that 97.2% of businesses are spending money on AI and big data, and the big data analytics market is anticipated to grow to $103 billion by 2023. At this point, businesses may suffer if they continue relying on traditional strategies and using low-quality or old data. Consumer behaviour data can be helpful in a variety of contexts, and its major benefits encompass the following points-
Netflix saves $1 billion annually on customer retention thanks to big data. Netflix uses data to understand consumer behaviour and accordingly undertake informed decisions. Savings can be handy in avoiding unfavourable circumstances and surviving a crisis. Retailers can strengthen their supply chain resilience by adopting a solid data-driven strategy, which can help make informed decisions and save money on corrective actions.
Consumer behaviour data can be helpful for brands to develop targeted advertising and digital marketing campaigns for a particular market segment. For instance, the use of data has helped tourism boards and businesses in many ways, such as their ability to target marketing campaigns, create packages based on the interests of visitors, and choose which nations to concentrate on when competing. For better planning and execution, urban planners, traffic engineers, and tourism authorities can also benefit from an in-depth, data-driven understanding.
Consumer behaviour data can provide demographic information about the touchpoints that younger people prefer and the ones that other age groups prefer. By keeping in mind the specific targeted demographic segment, businesses can then effectively market their products and services using a variety of marketing channels, including social media, email, offline, and more. With consumer behaviour data, businesses can maximise the effectiveness of their campaigns and ultimately improve sales.
Improved customer loyalty
Consumer behaviour data offers insights into what best serves customers and the kinds of services they value at different stages of the sales pipeline. Continuous monitoring of cross-channel data from the constantly evolving business environments to interactions with customers at their preferred touchpoints is a must. Utilising consumer behaviourdata improves the customer experience in both the online and offline worlds. Responding to the most recent and relevant insights can help brands remain conscientious in customer retention efforts.
In the end, the businesses that are able to adopt and implement a solid consumer behaviour data strategy will win by creating efficiencies, targeting customers accurately, maintaining customer loyalty, and getting ahead of competition.