Case Study: The predictable consumer

Nike is selling its fuelband data to marketing companies as a product. The Nike fuelband is an activity tracker worn on the wrist, it allows its wearers to track their physical activity, steps taken daily, and amount of energy burned.

Consumers with a Nike fuelband are gifting Nike and its partner companies with a wealth of data. Nike knows exactly when someone needs a new pair of trainers and that is obviously invaluable information.

This is just one of the many examples that demonstrate what modern marketing is all about: getting your hands on relevant consumer behaviour data and using it to your best advantage. Back in the day marketing was based on understanding the average consumer; nowadays marketing tries to understand every individual customer.

Its been said that consumer behaviour can no longer be predicted. Nothing could be further from the truth. Consumer behaviour has never been more predictable. Companies like Netflix only launch new TV shows when the available data predict success. Analysis of Twitter conversations can predict the following days stock movements with 95% accuracy. Analysis of our calendars gives a highly accurate picture of what our following day will look like, and so forth.

We live in a world where consumer behaviour is more predictable than ever. Every individual consumer feeds the corporate world tips as to his or her current expectations. In reality, though, only a handful of companies are making the most of these opportunities. The concept of big data alone deters a lot of companies. Lets be honest: most companies cant even handle small data. After all, how many organizations have a database thats truly useful and up to date?

In the future, big data management will become a necessary competency if companies are to be highly customer-centric. Consumer expectations evolve. Customers will be less tolerant towards wrong messages at the wrong time. Apart from this low tolerance, a lack of interest will automatically result in a limited impact. On the other hand, customers display a large degree of openness towards the right (commercial) messages delivered at the right time. This study shows that 1 in 3 customers have a very positive attitude towards personalized ads. Customers like to buy products. They also like information on products but only if its the right info at the right time. The modern marketer should turn his attention away from the average consumer and toward the individual consumer.

Question 2: (50 Marks 400 words)

1. What is the importance of gathering lots of data about consumers? How can a company take advantage of such data? (25 Marks)
2. Why does the consumer have a positive attitude towards personal ads? Explain by providing examples (25 Marks)