Consumer behaviour insights for idea

Abstract

As consumers of different goods and services, we make various purchase, rejects, trials, after sales or other usage related decisions on a day to day basis. Using data analytics of today, it is possible to understand the underlying human behaviour and derive meaningful insights if the correct data is available. Organisations use data analytics to derive consumer behaviour for a service or product to make appropriate and efficient business decisions. As the companies cannot track information about consumer views on an individual level, data driven insights can be used to create personalized consumer experiences to fulfil expectations in order to create long term customer loyalty. A study by McKinsey states that 50% of the companies using data analytics to derive consumer behaviour have significantly higher sales and retention of customers. Also, companies correctly using the data analytics techniques are 19 times more likely to achieve above average profitability. Customer behaviour analytics makes it possible for the companies to not only analyse past consumer behaviour but to predict based on past usage patterns and include other environmental factors that might affect in future. It is said that the true power of customer behaviour analytics is in the ability to accurately anticipate buyer behaviour to make relevant offers at each stage of the customer lifecycle, thus making maximum impact.