The Strategic Advantages of Leveraging Consumer Behavioral Data for Business Growth and Enhanced CX
In today's rapidly evolving retail landscape, staying ahead of the curve and meeting customer expectations is more crucial than ever. According to Synchrony's Future of Shopping report, by the year 2030, an astonishing 80 percent of shoppers will anticipate highly personalized experiences, and 67 percent believe that their shopping experience can be enhanced further through collaborative offers from multiple brands. To thrive in this dynamic environment, retailers must harness the power of consumer behavioral data, using it as a strategic tool to predict consumer needs, enhance the overall customer experience, and drive business growth.
The Power of Behavioral Data
Behavioral data collected from consumers offers a treasure trove of insights that can empower retailers to make informed decisions. For instance, retailers can gain a deep understanding of which products are likely to perform best during specific seasons, or in combination, and pinpoint the purchases most likely to be made with specific payment tenders. This knowledge isn't just valuable; it's essential for businesses looking to tailor their offerings and marketing strategies effectively.
Personalization is Key
Personalization is no longer an optional extra; consumers expect it. Many consumers will opt in to data sharing for specific benefits or loyalty perks. Leveraging behavioral data allows retailers to provide customers with tailored product recommendations, exclusive offers, and relevant content. For example, when personalized images or messages are brought forward in retargeting, they can improve conversion rates. By doing so, businesses can significantly improve the relevance and impact of their marketing efforts, increasing the likelihood of conversion and customer loyalty.
Enhancing the Omnichannel Experience
Personalization is also essential in providing an omnichannel experience and unified shopping journey, which is at the heart of modern retailing. Behavioral data plays a pivotal role in achieving this goal. Retailers can analyze consumer behavior across channels to gain insights into their preferences, and sales representatives can recommend potential products of interest or thank a customer for being a valued shopper. Businesses can deliver a consistent and personalized experience both in-store and online, fostering satisfaction and customer loyalty.
Leveraging consumer behavioral data also enhances the credit application and checkout processes by enabling:
- Effective Alignment of Product Offers to Consumers: Based on a consumer’s shopping and other behavioral patterns, the consumer’s payment preferences can be gleaned. This can allow retailers and their lending partners to offer the appropriate product to the consumer to support the payment, reminding them of their available credit line on an existing credit card product, or offering a new installment loan depending on the purchase type and ticket size.
- Speed and Accuracy of Credit Processing: One of the significant challenges retailers face is the risk associated with extending credit to customers. Synchrony helps its retail partners by providing advanced data analytics to assess creditworthiness and fraud risks accurately. By leveraging behavioral data — e.g., a customer's spending habits, payment history, and credit utilization — we optimize lending decisions considering credit and fraud risks. This also leads to faster credit processing, reducing wait times for customers and increasing their overall satisfaction.
- Instant Checkout: Leveraging behavioral data can also lead to the development of instant checkout options. By understanding a customer's preferences and purchase history, retailers can offer a one-click checkout experience, further enhancing the convenience and speed of online shopping.
The strategic advantages of leveraging consumer behavioral data are undeniable. It enables retailers to predict consumer needs, personalize marketing campaigns, and provide exceptional omnichannel experiences. As we head into the holiday season and a new year, businesses that embrace and master the art of data-driven retailing will be the ones that thrive in an increasingly competitive landscape.
Nasim Khoshkhou is senior vice president of analytics and data at Synchrony, a consumer financial services company delivering one of the industry's most complete digitally-enabled product suites.
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Nasim Khoshkhou is senior vice president, data and analytics at Synchrony, a leading consumer finance company, where she is responsible for driving data-driven decision making across the enterprise. Nasim leads the client and platform-dedicated analytics teams, has responsibility for the data office at Synchrony, and leads all decision management and journey analytics. Nasim also leads the business insights & solutions team delivering scalable reporting solutions for marketing, sales, client teams, and more. Prior to this role, Nasim led the Platform Analytics teams where she helped drive analytics and deepen relationships with clients and partners. Nasim is an active member of multiple Synchrony diversity networks, including the Women’s Network +, where she serves as co-lead for the Northeast Chapter, providing leadership, mentorship, and support for WN+ members in the chapter. She also participates with Synchrony’s Asian Professional Engagement Network +, as an SVP Sponsor for members of the Lakes Chapter. She graduated from Wesleyan University with a Bachelor of Arts in Physics and Bachelor of Arts in Mathematics.