Updated: May 15, 2019
Credit from Gary DeAsi
In a digital world where customer-centricity, personalization, and customer experience separate the winners from the losers, it’s no coincidence that these companies thrive. Before long, it will grow increasingly difficult to compete in any industry for those who are too slow to follow in their customer-centric, behavioral data-driven footsteps.
And yet, it’s amazing how many organizations still only take advantage of a mere fraction of the behavioral data at their fingertips.
There’s a good chance that this includes yours. If so, here’s the good news…
You don’t need to be an internet giant in order to leverage the power of behavioral customer data and analytics to take your business to the next level.
In fact, with the right knowledge and tools, any organization can do it. B2B, B2C, regardless of industry or size.
In this post, I’ll bring you up to speed on why customer behavior data is so important today, how it can be used to drive results, and why every company needs to adopt this approach.
Why Is Customer Behavior Data So Important Today?
Before the digital age, back when traditional one-way mass marketing communication was not only still a thing, but the only thing, personalization and customer experience didn’t really matter so much.
Back then, companies could get away with segmenting customers using primarily demographic and firmographic traits such as age, gender, income, ethnicity, occupation, industry, company size, geographic location etc.
In other words, focusing exclusively on the who.
Of course, there’s no arguing the importance of understanding who your customers are. Today, developing customer personas and ideal customer profiles are undoubtedly vital practices for understanding our target customers and for effective customer journey mapping.
But in the customer-centric world we live in today, just understanding “who” your customers are doesn’t cut it.
As Netflix’s VP of Product Innovation, Todd Yellin, pointed out in an interview with Mashable a few years ago:
“It really doesn’t matter if you are a 60-year-old woman or a 20-year-old man because a 20-year-old man can watch Say Yes To The Dress and a 60-year-old woman could watch Hellboy.” Todd Yellin, VP of Product Innovation at Netflix
As a 30-year-old male die hard Downton Abbey fan, this quote certainly rings true for me.
But I think it does a good job of summarizing the important point at hand, which is that:
You can’t possibly make assumptions on individual customers’ interests, needs, wants or values based purely upon who they are, or any “personal” you’ve assigned to them based only on demographic or qualitative characteristics.
Instead, companies like Amazon, Netflix and Google know that the key to understanding their customers can lie more in what they do; that quantitative insights revealed through their behaviors can paint a much more accurate picture of what their customers want and need, and how and when to best deliver it to them.
Use Customer Behavior Data to Deliver Personalized Customer Experiences
When you think about the Amazon,