For Marketer’s any change in customer behaviour is a “gold mine”. Marketing to customer’s whose behaviour is changing is far more rewarding than marketing to “static” customers! But sometimes there is "too much change" and in today's market that is exactly what is happening. Marketer's need ,what we at Cequity, call a Modelling factory approach-How to build models at speed!
Gallup chief economist Dennis Jacobe concurs that "a fundamental change is taking place" in the behavior of U.S. consumers, even if it's not clear how permanent it will be.There is, of course, the irony that as consumers do the right thing for themselves by saving more, they hurt the economy's chances of revival by spending less, the "paradox of thrift" as put forth by John Maynard Keynes.
Consumer behaviour and Analytics practises are definitely out of date in today's era of large changes in customer behaviour. Radical changes in patterns of consumption are here to stay. Even a reduction of the Bank rate to 0% is not going to impact consumption. The economy needs a much bigger shift to ignite the circular flow of income from customers to suppliers of services and goods.
Read more about this article on the following blog: