Analyzing Data and Buying Behavior of Customers - Essay Example

However, most customers only come to Target for specific products like cleaning supplies, toilet paper, etc. It, therefore, tries to identify the changing demands of the customers by exploiting the customer database that it has developed through its customer interaction. It also buys data regarding customers’ demographic details, job history, purchase and credit detail, etc. The main purpose is to analyze data and identify customers’ buying behavior so that appropriate an marketing strategy could be developed for attracting them.

The article raises the critical issue of customers’ privacy and confidentiality, which are violated when their private information is exploited for their business gain. At the same time, it gives an insight into how firms are inclined to use the information to change the habit of people and persuade them to buy goods from them. The author has been explicit in describing how the socio-psychological needs of the people are studied to identify trends of purchase behavior and personal habits. It also emphasizes that habits become ingrained within human behavior that needs to be changed. The author asserts that habits can only be changed if the cues or triggers of change can be identified and are later supported by rewards. The example of expectant mothers is very pertinent. It shows how the data regarding expectant mothers is exploited subtly through discounts and special offer coupons on items like coffee etc. so that they come to the store and are motivated to buy goods needed by them and their expectant child.

Businesses produce goods and services to meet the needs of the people. They need to understand the changing preferences of the customers so that they can meet the needs of the customers through new products and services. Thus, segmenting the market for developing specific goods as required by the segments hugely helps to promote business goals. For example, it tried to develop a unique market strategy for expectant mothers in their various stages of pregnancy.

Analysis of customer database to identify customers’ shopping habits as well as their habits is hugely important. It helps to evolve strategies for changing their set habits or help identify new ways to make them purchase products that could either create a need or satisfy existing needs. P&G’s advertising of Febreze is an excellent example that creatively influences the customers’ personal habits to incorporate the need for Febreze as an air freshener.

These are vital elements of an effective sales strategy. Cues are major indicators that identify habits and rewards help to break them. It is important to identify unique moments when habits become flexible and open to change. Duhigg gives many examples like newly married couples or people moving to a new town tend to develop new habits which can be exploited by retailers.