Customers change quickly when it comes to needs. In fact, manufacturers and retailers struggle to keep up with the ever-changing consumer needs. The main shortcoming is the inability to offer a customized buying experience within separate sales channels. This information comes from a study by KPMG. It is clear that too few companies are still using new technologies. For example, only thirty percent of the four hundred respondents indicate that data is used to gain real insight into consumer behavior.
Consumer behavior and CRM
Responding to changing consumer needs provides an excellent basis for increasing profit. More than 20 percent of the participants in the study indicate that they use technology to predict customer behavior. However, KPMG argues that retailers should approach customers even closer. A standard system for CRM is no longer sufficient. Nowadays, it is necessary to look more intelligently at consumer behavior.
Collecting unique information from each customer is an important aspect in this. That goes much further than predicting when the customer will make a purchase. It is also important to know why a consumer decides not to buy a product. Or not to purchase a service. Determining the smallest change can already be profitable for the retailer.
Responding to future market conditions is possible by making use of predictions based on data. Predictive analytics provide the opportunity to look ahead. The predictions are presented accurately. This involves using algorithms that are applied to relevant data. In this way it is possible to respond to the ever-changing consumer behavior.
For example, it is possible to predict which group of customers will purchase a specific product through a particular sales channel. It is also possible to make a prediction of which target group accepts an offer. The product stock can also be adjusted to the results. In this way, all kinds of predictions can be accurately displayed and anticipated. Predictive Analytics is indispensable for companies that want to get close to the customer and predict consumer behavior.
A clear vision is needed to keep up with changing consumer behavior. Predictive Analytics is an instrument that can be integrated into the primary process. This can also be introduced in your company. The first step is to determine the best strategy.