Customer Behavior Intelligence in Retail

This is the continuation of the article on "How Business Intelligence Changes Firm Management Today"

Here are some ways in which Starbucks uses business intelligence data to predict and impact customer behavior:

  1. Menu optimization. Starbucks is known to align its menu with the target audience's preferences. For example, they make product decisions after analyzing data on sales from specific stores and areas

  2. Personalization of customer experience. The company's analysts keep a long of transactions that customers made in the Starbucks Rewards app and then analyze it to tailor the loyalty program to every user using predictive analytics (a customer who likes to drink a large black coffee in the morning is given an opportunity to get the second one for half price rather than a free latte, for example).

  3. Targeted marketing. By studying digital marketing trends, customer preferences, purchase history, and the activity within the app, Starbucks analysts suggest new products, generate ideas for more enticing offers, and other marketing strategy improvements to maximize engagement.

So the main takeaway here is that using business intelligence and customer relationship management tools to analyze customer data can make a lot of difference by revealing people's ever-changing preferences, interests, and behavior.

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Business intelligence software is rapidly becoming a must for businesses. While there are some industries with a higher-than-average adoption rate, it's safe to assume that massive changes are awaiting businesses in all industries (especially given the fact that AI-based business intelligence systems are also developing at the speed of light).

There's a lot to expect from using these systems, and they will become vital for every business that relies on data to understand and improve their service. The rapidly growing size of the global business intelligence market supports the claim that more and more businesses are looking to take advantage of data-driven insights.

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