Marketers: Don’t forget an entire audience in your messaging. We think of only individuals as consumers. But businesses are consumers, too.
Customers are those who pay directly for the product or service. Consumers may not pay directly, but may pay a retailer for the product, then consume at home. In this case, the retailer is the customer, but the individual is the consumer. Shoppers are people who actually purchase the product—for their own consumption or to be consumed by others.
Consumers may act differently on an individual level than they do as part of a group. Large groups of consumers who mimic the actions of like consumers can be grouped into segments. These segments have many like characteristics, demographics, and behaviors. Segmentation dimensions are critical to understanding consumer behavior. Marketers can capitalize on that behavior to customize communications to each segment.
Knowing how consumers make purchase decisions must be at the heart of any marketing model. This understanding will enable marketers to deliver value to the process. The data can increase the likelihood that consumers will pick your product over that of the competition.
Some of the factors that influence consumers include:
- Timing – Some consumers shop once a week while others plan ahead.
- Preferences – Consumers may prefer a product for functional (dietary, e.g.) and/or emotional reasons.
- Need – Various factors drive the consumer to buy. An upcoming relocation prompts the consumer to buy boxes, for example.
- External influences – The rise of online shopping, governmental regulations, disruption in the supply chain and weather can affect purchases.
The right data interpreted in the right ways can reveal exactly who your shoppers, consumers and customers are—whether they are individuals or businesses. And why they are buying your product.
For more on building the right measurement infrastructure combined with the right analytics, get on the list to receive the newest book at our launch discount: Marketing Machine by ProRelevant founder and president Guy R. Powell, ProRelevant.com.
Come see us at the Marketing Analytics & Data Science (MADS) Conference 2018, April 11–13 in San Francisco