Part 1: The Key to Business Growth and Profitability: Customer Behavior
As companies transform to drive growth in changing markets with evolving channels and technologies, the center of such change is the customer. Amazon’s Jeff Bezos is a famous champion of customer obsession, as he noted, “I would define Amazon by our big ideas, which are customer centricity, putting the customer at the center of everything we do.” Amazon does this by capturing customer data at every touchpoint and leveraging that data to drive engagement and value for the customer.
Amazon keeps the customer first to enhance its business.
Turning Data into Actionable Insights
Today, data is the backbone of every business. Over 95 percent of business records are now in electronic form, and the volume of data being created, stored and analyzed are growing at an exponential rate. While this data explosion may be a challenge for companies to manage, successful companies are leveraging the data to uncover new insights about their customers, operational efficiencies and opportunities for growth. Leading companies not only analyze internal company data, such as sales and purchasing data, but also look to a myriad of third party data that provide actionable insights. Such data include social media, demographics, credit card, economic market and customer purchasing behavioral data.
In this shifting landscape, companies need to adjust to ongoing changes in customer purchase
Ultimately, companies that leverage these touchpoints can provide their customers with the products, services and information they want before they even recognize that they want them.
Customer data is being generated more quickly than ever before, a trend that can be a goldmine for understanding customer purchase behavior. Brick and mortar stores can leverage new technologies to analyze foot-traffic, as well as to create customer heatmaps and to use loyalty card data to help create a 360-degree view of customers. Meanwhile, the shifts from in-store to e-commerce, and now e-commerce to m-commerce, are creating even more data that can provide insights on how customers shop. Customer shopping on e-commerce and m-commerce platforms provide the capability for companies to track customer-level metrics, such as length of time spent on each product page, competing products viewed before purchasing and time of day with highest purchase activity – all powerful insights which companies can utilize to influence customers’ propensity to buy.
Customer purchase behavior is changing along with evolving sales channels and technologies, and understanding your customers is at the core of business growth and profitability. Companies must continue to adapt to the customer by analyzing the wealth of data about who they are and how they shop.