Customer behaviour models

Four Articulate Arguments Why Small Businesses Should Model Customer Behavior

Customer behaviour models

Gone are the days, when a small business exclusively meant being physically small or having a comparatively small revenue turn over’. In modern terminology, the small businesses are meant to be much more focussed and creative in managing their business opportunities. Also, you should make the best out of the available customer opportunities.

The small business needs to model its customer behaviour to take effective business decisions. One should be able to understand the business-customer dynamics and audience perspective to make this decision.

It’s about achieving a lean growth-oriented mindset that enables your businesses to maintain a high rate of growth. In this blog, we will discuss the five potential ways to use customer behaviour modelling which will help your small business.

Model Customer Data to compete with large corporations

In the present age, the small business in every sector is forced to compete with large global corporations. For example, if you own a small retail store, you inevitably end up having to directly compete with a nation-wide retail chain like Walmart or Spencer’s. If you own a small online e-commerce store, you are likely to end up competing with the likes of Amazon and Zappos.

Similarly, if your business is a part of any industry vertical, you are required to compete with companies across a table. This includes well-established companies with a much higher budget and better recognisability.

Typically, these businesses have large advantages in terms of product identity and margins. Now combine that with large marketing and R&D budget being splurged on online-offline marketing channels.

For example, let’s consider the gargantuan ad expenditure of Amazon over the last five years.

Marketing expenditure

As per, it falls around the figure of 7 Billion dollars in 2016. Needless to say, these numbers are beyond the human capacity to conceive for most business owners.

You should try to compete against these trends by running more focussed and targeted campaigns.

For example, with Kapture CRM you can enable to collect and segment the data of all your past customers, you could spot a pattern-behaviour of your most profitable customers.

Kapture CRM helps you instantly determine the characteristics of each of your customer.

Customer Data

This helps you form strategies to acquire more of the same customers. You can also iterate your existing marketing campaigns to drive more product engagement.

Model your Customer Service to understand customers

The customer service has evolved from being just a closed single channel means of communications.

Previously, the consumers were known to overwhelmingly choose a particular means to interact with a given business. With multiple social and business channels, you can see that these have also radically changed.

By understanding their preferred means of communication, you can also make realistic assumptions about your customers.

For example, if you notice an overwhelming use of social media, you have a young audience with a preference to digital channels over the telephone. You could also figure out the problem areas of your products with your customers.

In this sense, you need to have a completely interconnected way of receiving and managing your customer interactions.

Model a smarter and agile way to manage opportunity

As it is, the lead acquisition is becoming incrementally costlier and riskier by each passing year. You are also required to consistently make the decision to lead the quality v/s quantity.

For example, consider one of the most popular lead acquisition strategies for small businesses – Google Adwords.

In this, the majority of the top 20 Keywords belong to the small business category.

Lead acquisition strategies

At the same time, most businesses don’t really incrementally increase their marketing budgets. Some businesses have even decided to even cut-back on their lead generation costs.

 lead generation costs

All businesses have to make the most out of their available generated leads. For this, the progressive ad agencies and organizations are putting more stress on their lead management capability.

This helps you to reach out to your customers in a significantly faster way. Additionally, it also increases customer engagement, future interactions and reduces the cost of acquiring leads.

Dynamic customer data

You can even use this to collect user data, which could be used to plan to organize their marketing strategy. This helps them to acquire a higher ROI.

This form of customer modelling helps you understand your customer needs and tweak your offerings. This makes your product more appealing to the target audience.

Model your future decisions based on insightful reports

It’s a general superstition among modern businesses that data is the pillar for insights and intelligence. Nothing could be true.

But the world’s most premier financial experts and internet marketing professionals vouch otherwise.

Ronald Coase

If your data is just an accumulation of numbers, it’s potentially dangerous. It could easily end-up driving you the wrong business alleyway, costing you both time and money.

Rather, you should have accurate and insightful data to guide the decision making in your business. For this, you would need an in-depth customer profile that incorporates multiple customer data.

For example, you may not get a complete picture of employee performance or effort just through examining the sales closures.

A more sensible dashboard will present the sales closed, leads under negotiation, leads rejected etc.

Sales CRM dashboard

This data helps you evaluate the quality of available leads. Afterwards, you can use the data to model your future marketing efforts.


In the present circumstances, the businesses need to think beyond closing that one immediate deal and consistently increase their profit margins. Otherwise, they could have their businesses getting folded in front of much larger global enterprises.

By modelling their customer behaviour, the prospective business could have much more data and insights into managing their organization. This requires a conclusive way of receiving and managing your customer data.

Kapture CRM helps small business to receive and manage their valuable customer data. By unifying different customer interactions, you could potentially increase your quality of data. This helps you to take more effective customer decisions.

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