CONSUMER INSIGHTS AND HOW ITS CHANGING CONVENTIONAL WAY OF BUSINESS
Companies today face rapid change in technology and consumer behaviour. Today mobile applications are generating large stream of data for consumers i.e. online behaviour patterns, social media interactions, user reviews, geolocation data and mobile payments. Shopping is now fully integrated into daily life. Consumer today demands for more information, newness and interaction with brands. It is the ability of the brand to comply with the needs and demands of the individual consumers. As a result, companies who were once stable have become more volatile and uncertain.
Every company knows that customer is the king of the business and no company would survive without providing customer satisfaction from its goods & services. However many business fails to understand their consumers when it comes to developing new products and services or marketing the right product to the right consumers. This does not mean to simply understand the consumers in their traditional sense of buying to a specific demographic group but also to understand why consumers acts in certain way, how they share information with each other and what social impacts are shaping their perceptions and understandings.
Changing consumer base:
Today consumers have changed significantly on how they choose to work with the companies and the brands to which they are loyal with. They have diverse background and social foundations and they want to interact with more personal level. Organisations do not look for consumer insights or fail to understand the consumer behaviour and thus not able connect or engage with prospects and fail to motivate them to become customers. Companies now realise that they need to offer a wide variety of products, services, colours and fashions to appeal to an ever-changing customer base, which is possible only by product innovation.
Companies born before the internet took hold face confront a huge test improving their online products and services at the twist speed of their online competitors.
``The capacity to make thousands of changes every day to its online retail services has been a key reason for Amazon expanding its online lead over Walmart and other historically bricks and mortar retailers.``
Other companies that are making the transition to the digital face similar challenges from digital natives. Newspapers, pay TV, magazines and other media companies have been losing customers in droves to digital media firms like the Huffington Post or Netflix. Companies are increasingly using customer insights via digital modes to improve their products and further launch new ones in the market, as they offer various advantages to the firms. The time taken to make critical product enhancements dramatically reduces and the companies gain the ability to test new ideas quickly and cheaply, run experiments, and back out if there are any problems. Going digital helps decrease the costs by eliminating the waste of fully developing features that fail in the market and rapid revenue increases from products that are continually on target, with better features and functionality every day. They also lead to improvements in quality, reductions in errors, and greater reliability.
Mobile is the future:
Consumers continue to lead the mobile charge in most markets from Alibaba to Uber. As more banking activities go online, a major challenge for bankers has been to identify the right priorities and the sequence of their moves-both for earning greater customer loyalty and for funding investments in digital channels through cost reductions in the branch network.
“When Bain & Company’s 2015 global survey asked 114,696 consumers which they would miss more if taken away for a day, their mobile phone or physical wallet, more than half chose their phone, with the share reaching 79% in China. Mobiles have clearly advanced past the tipping point.”
As more banking activities go online, a major challenge for bankers has been to identify the right priorities and the sequence of their moves-both for earning greater customer loyalty and for funding investments in digital channels through cost reductions in the branch network.
The consumer behaviour is all about understanding the culture. Instead of trying to change behaviours, firms can learn how to play into them and utilise them to their advantage. Since building a brand is based on establishing an intellectual and emotional relationship, business planners, product developers and marketers must all take the cultural context into consideration. A greater understanding of cultural insights and anthropological factors increases the marketer’s ability to motivate action and affect behavioural change. The world has changed dramatically and continues to evolve every day. What appeals to customers one day may not work the next day. Businesses need to wake up to this fact and improve their insights into consumer behaviour.