Using analytics to its fullest potential means thinking of a customer’s preferences differently. For example, today’s abundance of consumer information can be much more impactful if the information is used to improve both a company’s profitability and a customer’s satisfaction. In fact, greater business value is gained from customer data if every transaction is not used solely to maximize profit. While analytics is essential to support a successful business model, empathy and foresight allow a company to truly understand how its customers think.
One such company that employs both analytics and empathy is Netflix, which differentiates itself by rewarding its regular customers. With the help of analytics, Netflix recognizes the movie choices its customers prefer, gives them more of what they like, and provides them with greater options. This relationship helps Netflix connect with customers and understand what makes them happy, what is convenient for them, and what they want from the company’s services. Through customer interactions, Netflix has more closely aligned its business strategy with its customer base, resulting in a greater understanding of how consumers behave and think. This increasing exchange of information leads to better communication and understanding between companies and customers, and the best companies are using this information to not only enhance the customer experience but also the process in which managerial decisions are made.
As a result of the widespread use of analytics and the more prevalent use of decision management, a new democratization has been reached among companies and customers. Today more than ever, customers and companies both know more about each other’s behavior than in generations past. Many of today’s companies are taking advantage of this relationship by using analytics, information technology, and creativity to envision new sources of customer value. This also results in new sources of profit. For example, the emergence of social media and interactive online communities has allowed consumers to connect with their favorite brands or receive personalized services. In this way, consumers are interacting with companies by watching, paying attention, and responding. As companies collect consumer information, a new form of consumer-centered marketing has emerged.
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