There was a time when customers had no choice to deal with business. Their choices were confined. The business had all the power, leaving customers powerless. Today, case is just vice versa. Customers have lots of options to choose from, shifting power from businesses to customers.
If a customer is not satisfied with a business or feel that the business is underachieving on its criteria, they will simply leave and choose another business.
To cope up with this problem, businesses started to study customers, follow trends.
Lately the trend of customer personalization has been popular in business. Personalization in business context, is the process by which customers are subjected to experience and communicate that suits to their personal preferences.
Most common methods for gathering customer data is by survey, progressive profiling, contests and social login.
Business collect customers data so as to help their customers, in a long run. Here is how customer data is beneficial to businesses as well as customers.
- To communicate with customers directly. It can be for marketing purposes or customer feedback.
- To see how much customers spend every time they interact with your brand.
This tells how valuable the customers are to the business. Are they short term or long term.
- To know their preferences so that they can be offered with highly personalized offers so as to increase customer experience.
- To find out what’s trending between among customers. Group such topics based on age, group or sex. So that related offers can be pitched or a new feature/product can be introduced.
- To find out what customers likes and dislikes so that their whole experience can be enhanced.
By knowing things about customers ,business can get clear idea about their processes which are going in a wrong direction.
This is how customer data is beneficial for businesses.