Jeweller - September 2021

BUSINESS
Strategy
What customers want next:
Decoding the clues
JEANNIE WALTERS offers strategies for businesses as they adapt for the future
retail environment – and rapidly shifting consumer behaviour.
Human behaviour is notoriously difficult
to predict; sophisticated modelling and
data analysis can help, but these are
typically based on past behaviour.
Past behaviour might be helpful for
predicting future success if all variables
remain the same, but what if the context
– or the entire environment – changes
over time?
In one study by analytics firm Concentric,
99 per cent of business leaders reported
doing some kind of forecasting, yet only
14 per cent stated they were “effective”
at doing so.
It’s the secret everyone knows – predicting
the future is hard.
Many organisations and businesses are
benefiting from machine learning and
artificial intelligence tools to isolate data
points that can help predict the next
actions of customers, as well as the
likelihood of desired outcomes.
But like any form of analysis, these
methodologies rely on good data – and
many businesses are still ‘playing catch
up’ on getting the inputs right.
So, what can a business leader do
to look ahead and predict future
customer behaviour?
Searching for clues
The first step in predicting customer
behaviour is a simple one – know your
customers and their goals.
Business owners and leaders are regularly
told to improve customer experience in
order to increase sales, but with little
instruction or information on how to do so.
There is no data, there is no defined
goal, and in some cases, there is no
shared understanding of what ‘customer
experience’ is!
Therefore, it’s important to start with
the foundations.
Firstly find out what you can about your
customers. If you have data, such as
purchasing history, use it; if you don’t,
collect whatever feedback you can from
social media and product reviews.
Next, consider your customers’ lives; don’t
get stuck in the ‘our customers only care
about our product’ fantasy!
Too often, I
see business
owners and
leaders struggle
with predictions
because
they create a
universe where
the customer
has one goal
– to use the
company’s
product
To look for clues about how customers may
behave in the future, it’s vital to understand
their present reality.
That means looking beyond basic
demographics or job titles to knowing how
they get their information, the needs their
community has, and other brands to which
they are loyal.
What about their stage of life? Are they
dealing with school schedules or planning
for retirement?
Keep in mind the life they’ve led most
recently; the pandemic created a different
daily routine for most people.
Observe broader trends
Almost without exception, most business
owners and leaders tell me their industry is
unique, but there are absolutely trends that
apply across almost every industry.
For example, a very significant customer
experience trend for the future, across the
market, is a focus on health and safety.
Business owners must look for the trends
and then plan around them.
74 | September 2021