Consumer data is a new, modern, sophisticated, and invaluable tool that has changed the business dynamics for the better, in many aspects. This is a pool of most in-depth information data about our existing, potential, past consumers and those of our rivals in customer data.
This data gives insights into the consumer’s demographics (age, gender, nationality, race, marital status, region, income, employment, and education level), psychographics (values, interests, desires, goals, and lifestyle), and behavior as a consumer (usability rate, frequent or occasional, bulk or individual items, purchase when needed or only when given discounts, what kind of store is the purchase made from, and so on).
All this information is being used by the businesses to segment markets, target them according to their unique needs, prioritizing which group of customers need to fulfill first depending on their consumer behavior, and developing marketing strategies based on their psychographics. New marketing techniques, for example, micro marketing, are being fast developed and adopted by businesses of all scales due to the virtue of their enormous effectiveness and efficiency.
This customer data is not only important to see what the consumers are doing now, but also to predict what they may want, do, need, pursue, demand, and buy in the future which is also known as personal data. This has helped businesses and marketers develop novel products and services before the consumers even realize that they have a need for them. As a result, many companies are researching and developing disruptive technologies that are giving birth to new industries while being the cause of death for some existing ones.
This high volume and high-value data – if used properly – helps decrease the failure rate of new products, businesses, and campaigns. This also saves companies the time, cost, and effort of doing something that is or will not be demanded by the consumers and markets that they want to target.