Question

How can Consumer Data identify business trends?

Answer 1

Solution:

Consumer data in today's world is one of the most important assets for any industry. By studying consumer data the business houses with funds identify the areas in which the organisation can venture and create a product as per the consumer demand.

Consumer data consists of how the customers or clients of any business is consuming its goods or services and it also reflects the manner in which the customers react to any physical or monetary change in the entities goods and services.

Thus, when the data shows a positive outlook on a company's goods or services one can be certain that the business is at present trending up and vice versa.

For example: Before the launch of touch screen mobiles, the mobile devices with buttons were all in heavy demand. However, as the popularity of the touch phones soared, the demand for older devices started to fall and there was a shift of consumer demand towards the more advanced touch screen mobile devices. Though touch screen devices were in existence since 1994, it was only when apple launched it's iPhone when consumer began to show interest in those devices.

Thus if one studies the trend of consumption reflected by the consumer data of mobile devices, one can see a huge shift to touch phones after the launch of the iPhones.

Thus to conclude, it would not be wrong to say that the business trend before and after the launch of the iPhones can be compared using the consumer data for those years and one can easily see the business trend for touch screen mobile devices going up by leaps and bounds and as a result, existing mobile device companies like samsung also started manufacturing similar touch screen phones.

Thus, Consumer data helps an organisation study and understand the consumers need and also gives an insight to the business that and entity can venture into by identifying the business trends in a particular/multiple business segment.