module 2.3 data driven business models

Customer data is competitive advantage

The most valuable asset in modern business is often not the product. It’s the customer knowledge.

What What data allows companies to do?

1. Personalisation

2. Predict behaviour

3. Prevent customer loss

4. Increase customer lifetime value

Personalisation

Treat customers differently based on their needs

Example:-Netflix recommendations

Everyone sees different content

Predict behaviour

Understand what customers may do next

Example:-Amazon suggested products before you actively search for them

Prevent customer loss

Identify customers who may leave

Example:- A gym notices, a member hasn’t visited in weeks

They send :-

• A reminder

• Special offer

• A training session

Before the customer cancel

Increase customer lifetime value

Instead of focusing on sales

Focus on years of purchase

The real advantage of data

May people think data helps companies sell more

That’s only part of the story

The bigger advantages:- Data health companies understand customers at scale

Without data= You guess?

With data = you know

Marketing insight :-

Most successful modern businesses don’t just collect data

• They Turn Data into action

• Many companies have customer data

• You know how to use it

Key takeaways

Business lesson:-Data is valuable only when it changes decision

Marketing lesson:-The goal is not to know more about products. It’s to know more about customers

Strategic lesson:-Products can be copied, customers insights are much harder to copy

The companies that win increasingly use customer data not to sell more products but to understand customers better and create personalised value