How Big Data And Niche Services Help Customers Feel Important

Conventional wisdom holds that large corporations view the individual customer as just another number. However, many of these companies are now harnessing the power of big data to turn that perception on its head. Using the extensive market research insights they collect, even the largest enterprises can create niche services that cater to individual customers’ requirements and preferences as never before. 

Big Data Drives Personalization

Forrester Research calls this The Age of the Customer, reflecting the sea change that has occurred in the 21^st-century marketplace. Business decisions are now determined by the studied behavior of customers, rather than by the corporations themselves. Many organizations across all industry sectors are moving quickly to adapt their strategies to this new reality.

For example, the energy industry is viewed as being particularly indifferent to consumers, who are the end users of its services. However, even these companies are changing their approach. Royal Dutch Shell LPC has recently introduced its TapUp service, which enables customers to order a tank refill from their homes and skip the drive to the gas station. 

Another large corporation embracing more personalized customer services is Disney. Its MagicBand wearable technology allows patrons to design their visit preferences in advance, and to have a personalized, interactive experience at the park.

Pepperidge Farm lets customers design their own Goldfish crackers, while Brooks Brothers allows customers to design their own suits. With its highly successful Share a Coke campaign, Coca-Cola has introduced bottles that customers can personalize with the names of their choosing. Additionally, Coke’s new Freestyle vending machines offer patrons a variety of more than 100 flavors and mixes to choose from.

Big data delivers the ability to understand customer preferences by analyzing their behavior and interactions, as well as by analyzing business results at a very granular level. It also enables companies to be agile in their response to customer priorities and to meet these needs as quickly as possible. Big data allows corporations to deliver personalized services on a mass scale in real time.

Small Brands and Niche Services

Another strategy for large corporations seeking to satisfy current market preferences is to purchase popular small brands and niche services. These brands are beloved by customers for their product quality, personal service and socially or environmentally conscious policies. Many consumers remain loyal to these brands and are often clueless that their favorite small company was purchased by a giant multinational corporation.

Some recent examples of this trend are Clorox’s purchase of the Burt’s Bees personal care, Unilever’s purchase of Ben & Jerry’s ice cream, and General Mills’ purchase of Cascadian Farms natural cereal. Some of these cases have resulted in a backlash from consumers upset about their trusted brands selling out, or about perceived changes to company policies and products under the new ownership.

Technology companies have become known for buying out smaller outfits that offer new customer-centered niche services. The small startups targeted for purchase are often seen as representing innovation and competition, and large companies would rather absorb the cost of a merger or acquisition than pay the price of being left behind and losing future market share. The best example of this is Google parent company Alphabet, which has purchased an average of one company per week since 2010.

It’s clear from customer research into insights and business performance data that the customer-driven marketplace has defined business in the 21st century so far. The rise of personalized, on-demand services was heralded by rapid changes like Netflix destroying the Blockbuster business model, or Facebook besting competitor Myspace through ongoing design changes in response to user preferences.

While no one can fully predict what further changes the future will hold, businesses must leverage big data solutions to adapt to customer preferences in real time or face the consequences of being left behind.