Consumer spending is one of the most important metrics for any industry — yet all too often, businesses fail to track it effectively. But understanding how your target audience is spending their money and why can be critical for your business planning and activities.

Tracking consumer spending habits can provide a wide range of critical insights that will enable you to increase your own profit margins and ensure that your brand is positioned to best appeal to its audience.

Related: How to Grow Your Business When Customer Behaviors Change

1. Understand customer preferences

At the foundational level, tracking consumer spending is essential if you wish to have a better understanding of your customers’ shopping preferences and behaviors. What is the average number of items customers purchase in a single transaction? What is the average value of each order? What products are bought together?

Consistently analyzing these and other spending trends among your customer base can help you identify more effective strategies for marketing, such as offering complementary products.

Amazon is perhaps the ultimate case study of leveraging consumer spending habits to fully understand — and capitalize on — customer preferences. The company’s algorithms notably draw on data points like the products a customer has purchased and rated, and then use that information to recommend similar or complementary products. By leveraging data to gain an in-depth understanding of customer preferences, Amazon has become the retail giant it is today.

2. Personalize your marketing

Tracking customer spending habits can be a valuable resource for personalizing your marketing efforts. The rise of generative AI, in particular, is believed to have significant potential in streamlining marketing personalization for brands big and small — but for this personalization to be effective, you need to supply it with good data.

Tracking individual customer spending helps you identify what types of products a particular customer likes and which related products or services would be the most appealing to them. According to McKinsey, 71% of customers now expect personalized interactions based on this type of information — and even more telling, 76% are disappointed when they don’t get it.

Tracking spending provides the information you need to ensure personalized messaging hits the mark. In fact, 70% of companies with an advanced personalization strategy report a return on investment of 200% or more.

Related: 3 Ways to Personalize Your Marketing for Higher Engagement

3. Predict and prepare for market trends

In addition to improving marketing outcomes on an individual level, looking at the big picture of customer spending can also help your business prepare for and adapt to wider market trends.

For example, according to research conducted by Faye, the top travel trends that Americans plan to spend money on in 2025 include solo traveling (26%), “low season” or off-peak travel (24%), destination “dupes” that are similar to but cheaper than larger tourist destinations (20%) and sports tourism (15%).

For Faye, as a travel-related business, understanding how customers plan to spend money regarding their travel plans can provide critical information that can then influence marketing plans and timed service offerings. In any industry, becoming more aware of wider market trends is critical for staying ahead of competitors and avoiding major downturns.

4. Improve your products or services

Customer feedback is one of the best ways that businesses can get insights into how their target audience views their products or services. While customers may sometimes be willing to write a review or contact customer support, their spending data can also give your team crucial insights into the appeal and viability of a particular product or service.

For example, you might discover that a product that was once a major sales driver for your brand has seen significant declines over time. This data doesn’t exist in a vacuum — it could stem from seasonal or macroeconomic trends. But it could also serve as an indicator that your competitors have begun to offer something more appealing.

Tracking customer spending can become an important first step in identifying when there is a need (or opportunity) to make adjustments and improvements to your existing products and services.

5. Improve retention rates

It’s one of the most commonly repeated data points in all of business — increasing customer retention by just 5% can increase your company’s profits by 25% to 95%. This is largely because it can cost five to 25 times more to acquire a new customer than to retain an existing customer.

Each of the previously mentioned reasons to track customer spending will have a significant impact on your customer retention rates. By better understanding overarching preferences, personalizing marketing to individual customers, gaining insights into market trends and optimizing your products, you create an environment where customers are more likely to stick with you in the long run.

As you make the most of spending insights to optimize your operations and increase your efficiency, you’ll improve customer satisfaction and retention, which will also give your profit margin a much-needed boost.

Related: 3 Pillars of Client Retention Every Brand Needs to Implement

There are many ways you can gain greater insights into customer spending habits. Whether leveraging readily available data from your own website and sales platforms, conducting surveys of your target audience or utilizing third-party data, you can gain the necessary insights to adjust your operations and become more profitable. Making the necessary investments to better track and analyze customer spending will more than pay for itself in the long run.

In 1997, Gary Winnick founded Global Crossing, a company with the bold vision of laying undersea fiber-optic cables to build a global IP-based telecommunications network. It was a massive infrastructure play, designed to form the core transport layer for the internet, connecting data centers and network hubs worldwide.

But as visionary as the plan was, none of it mattered without one crucial component: the last mile. That final connection to consumers and businesses determined whether the network could fulfill its promise.

Global Crossing became one of the most hyped companies during the dot-com boom, peaking at a $47 billion market capitalization. The demand for internet bandwidth surged – just as predicted. But by 2001, the bubble burst. The company had overbuilt its capacity and couldn’t generate enough revenue to cover its debts. In January 2002, it filed for bankruptcy with $12.4 billion in liabilities.

The lesson? You can be early and even right, but if you don’t complete the journey, the opportunity slips away. As growth investors, it’s a reminder to take some profits when excitement runs high. Not every rocket ship reaches the moon.

Ah, those were the days. I was trading tech and internet stocks on the 49th floor of 1 New York Plaza like a man possessed. Such a career-limiting move in retrospect! I even traded GBLX but can’t recall whether I made or lost money (probably lost).

Why Completing the Last Mile Is Everything

If there’s one mantra my wife is tired of hearing, it’s this: Finish the last mile. Looking back, I didn’t fully appreciate how much Global Crossing’s rise and fall shaped the way I operate today.

When you no longer have a steady paycheck—as I haven’t since leaving my finance job in 2012—there’s no one to catch you if you slip. No meetings? Fantastic! But also, no paycheck or no accomplishment. Everything depends on your ability to follow through.

In contrast, as an employee, you could take two weeks off and still get paid. At large companies, your absence might barely register if you take a three-month sabbatical. But when you’re on your own—whether as a retiree, entrepreneur, or solopreneur—the last mile is all on you.

Without finishing the final leg, all the planning, effort, and setup amounts to nothing.

A Recent Missed Last Mile That Still Bothers Me

I’m sharing this story because I dropped the ball, and I want to be accountable.

As part of promoting Millionaire Milestones: Simple Steps To Seven Figures, I offered readers a unique chance for a 1-on-1 financial consultation. The promotion: buy 55 hard copies at a bulk discount, which would total roughly 40% less than my normal consulting rate, and in return, get a personalized session. Clients could gift the books, and I’d get to help someone directly. Even though I’d make no money, it’s still a win-win.

This promotion ends May 10 and won’t return until my next book drops in late 2027 or mid-2028. If you’re interested, you can fill out the short form at the end of this page.

One client accepted the offer. We exchanged emails, and he filled out the onboarding questionnaire. I reviewed his info, and he proposed a date and time. I mentally confirmed, opened my calendar, created a Google Meet invite, wrote a note about looking forward to the call… and that was it.

Unfortunately, I forgot to actually send the calendar invite!

Off we went on a five-night Tahoe ski trip. I even took a few consulting calls during downtime and returned feeling recharged. But I didn’t realize until the following Thursday morning that I had never confirmed the meeting with him.

There was no email, no invite sent. Just silence on my end, with the belief I had a call lined up all along as it was it my calendar.

When I finally responded and sent the calendar invite at 7 a.m. Thursday morning, it was too late. His day had filled up. Worse, his last email to me was 11 days ago. Imagine paying for 55 books and then hearing nothing in return. I felt terrible. My bad!

Why I’m Now Bad at Meetings (And What I’m Doing About It)

In my finance days (1999–2012), meetings were everything. When helping IPO candidates pitch to clients, I’d sometimes attend 7–8 meetings in a single day. Being punctual and prepared wasn’t optional, it was expected. I’d also often meet with clients for meals or drinks. There was no way I could ghost them if I wanted to build a relationship.

But now? I average maybe one business-related meeting a week. I limit consulting to two sessions per month to protect my freedom and energy. That’s why you won’t even find my consulting page unless you search for it. If it were easily discoverable, my lifestyle would decline because demand is overwhelming.

The result? My “meeting muscle” has atrophied. Sometimes I forget appointments that are in my calendar. Alerts pop up, and I’ll still mentally dismiss them, as if they were invisible. Since 2012, my brain has been rewired to operate on my schedule, not someone else’s.

So here’s what I’ve started doing:

• Check my calendar every morning
• Set two alarms for every meeting: 30 minutes before and 5 minutes before

Why two alarms? Because I’ve missed meetings before after the 30-minute one goes off. Oh boy… the rewiring for meetings takes time.

Success Comes From Closing the Loop

You can brainstorm, plan, and prepare endlessly, but if you don’t complete the final step, none of it matters. The last mile is where results happen. Here are some common examples:

1. Job Hunting

Plan: Build a resume, research companies
Miss: Never apply or skip interviews out of fear
Result: No job, no progress, no money

2. Fitness Goals

Plan: Buy gear, get a trainer
Miss: Don’t go consistently
Result: No transformation

3. Starting a Business

Plan: Build a site, secure funding
Miss: Never launch
Result: No customers, no revenue

4. Writing a Book

Plan: Draft 90%, revise
Miss: Never reach out to agents, never get published
Result: Zero readers, zero impact

5. Investing

Plan: Do research, understand the risks and rewards
Miss: Never invest
Result: Money stays idle, slowing lagging behind inflation as your peers get richer

6. Education

Plan: Pass exams, attend class when you’re not hungover
Miss: Only attend for three years and drop out to start a band
Result: No degree and $60,000 of student loan debt

7. Relationships

Plan: Came up with a witty opening line to reach out
Miss: Never call, meet up, or send the message
Result: Missed connection, no joy, no love, no children, only more loneliness

8. Financial Planning

Plan: Create strategy, hire a financial professional, or take advantage of my promotion
Miss: Don’t implement
Result: Great plan, no results, and being filled with regret when you’re 65

The Finish Line Is Where the Magic Happens

We all know people who start with incredible energy but never follow through. I’ve been guilty of that more times than I’d like to admit. But here’s the truth: the real value, the growth, the reward—it all lives in the last mile.

Whether you’re building a business, planning for retirement, or simply trying to keep your promises: finish the last mile. The world rewards follow-through.

Readers, are there things you’ve started but didn’t complete that crucial last mile? If so, what held you back?

Sometimes, not finishing is a sign it’s time to move on—and quitting can actually be the smarter choice if progress has stalled. Do you have any examples where walking away turned out to be the better decision?

A realization after the fact: After a 10-minute sit-down with my wife at the dining table, she helped me realize a couple of things. First, the client I forgot to send the invite to had never actually ordered the 55 books—which is huge! That made me feel a lot less bad about forgetting to send the calendar invite. Second, the client could have followed up too after several days. Communication goes both ways.

Order A Copy Of Millionaire Milestones Today

Huge thanks to everyone who’s pre-ordered a hard copy of Millionaire Milestones: Simple Steps to Seven Figures so far. From what I see, Amazon currently offers the best price with a lowest price guarantee.

This book is my attempt at writing a modern-day version of the classic The Millionaire Next Door. Times have changed, and so have the many different ways to achieve millionaire status.

Unfortunately, thanks to inflation, $3+ million is quickly becoming the new $1 million—and by the end of this decade, $5 million might take that title. Without proper saving, investing, and calculated risk-taking, building outsized wealth is only getting harder.

Lucky for us, we have the knowledge and resources to outperform. I wrote this book to help you achieve financial independence sooner, so you can live life on your terms. I hope you enjoy the read!

Big tech companies and small businesses face the same basic problems. They both need to understand their customers, manage costs and watch competitors. However, tech companies tackle these challenges with processes that most small businesses never implement.

I’ve spent years understanding both worlds, and I promise you: These five tech practices are worth stealing. They don’t require fancy software or a huge team. Just consistency.

Related: How Inefficient Processes Are Hurting Your Company

Understanding your customer persona and “jobs-to-be-done”

Tech companies and successful large corporations strive to understand their customers well. It’s much more nuanced than “we serve young professionals” or “the people in this neighborhood.”

Let’s take Starbucks as an example. They don’t just sell coffee to “coffee drinkers.” They have distinct customer personas: the rushed morning commuter who values speed above all, the remote worker camping out for hours (who probably should be paying rent, honestly) and the social meetup crowd treating the café as a gathering spot. Each persona drives different decisions on how their stores are set up and operated.

The key is understanding what job your customers are “hiring” you to do. Nobody buys a quarter-inch drill because they want a quarter-inch drill. They want a quarter-inch hole. Maybe they are first-time home-owners who are hanging shelves. Maybe they are woodworking hobbyists building a birdhouse. These are both different jobs to be done, an industry standard framework by Clayton M. Christensen.

It’s why Apple doesn’t sell “smartphones with good cameras.” They sell the ability to capture your child’s first steps in stunning clarity. The job to be done isn’t “own technology.” It’s “preserve memories.”

What job is your customer hiring you to do? Figure that out, and you’ll see opportunities your competitors miss entirely.

You’re leaking customers and don’t even know it

Product managers and tech companies obsess over retention. If your customers don’t come back, they probably don’t find your product valuable, and the company does not have product-market fit. Even if you acquire a lot of customers now, you will eventually lose them and churn through the market to oblivion.

You don’t need fancy systems for this. Just make a spreadsheet and start tracking. How many customers from last year still buy from you today? If that number makes you wince, you have a churn problem.

Your spreadsheet can track the purchase history of all customers. When do customers typically vanish? Three months in? After five purchases? Now, try to understand the reason behind it. Did they stop liking the product or service, find a cheaper alternative or just forget? If you email or call a couple of people to ask, you will have the answer.

Your existing customers believed in you enough to give you a shot. Understand their problems and make them loyal fans.

Related: 3 Pillars of Client Retention Every Brand Needs to Implement

Know your costs

Unit economics is the magic math that lets corporations grow large and become profitable. What does it cost the business for each thing sold? Small businesses often track overall expenses but forget to attribute them to individual products and services.

Let’s think about your neighborhood sandwich shop. If the supplying bakery raised its prices by 10%, what does it mean for each sandwich’s margins on the menu? Are they still profitable, and by how much?

Tracking costs in detail can be hard and tedious. It’s not just materials but also the labor costs, transaction fees, packaging and so on. However, not knowing detailed costs is a missed opportunity at best and dangerous at worst. You could be losing money on some items while others subsidize them. Or worse, your apparent “best seller” might be bleeding you dry while a humble side offering quietly delivers all your actual profits.

Create a spreadsheet today. List every product and service. Assign all costs and make sure to include everything. Update it when your costs change. I guarantee you’ll find surprises that will change what you sell or how much you sell it for.

Learn from your competition

Go down the street and try your competition. In a new city? Go to the store in the same business as you. Yes, actually pay for something. What works? What’s frustrating? How’s the service? How does it compare?

This introduces you to brand-new approaches to doing things. You can learn from what others are doing well and avoid their mistakes.

Maintain a shared document where your team can add insights regularly. Make this part of your culture, not an occasional panic response if sales dip.

Your personal board of directors

Silicon Valley startups assemble advisory boards featuring industry veterans, subject-matter experts and been-there-done-that entrepreneurs. Small business owners often try to figure out everything themselves, occasionally consulting with an accountant who’s juggling 200 other clients.

Your advisors shouldn’t just be friends who validate your ideas. You need people who will challenge your thinking, identify blind spots and connect you to opportunities. You need expertise you don’t have.

You don’t need to offer equity like tech companies. A lot of professionals will advise you for reasonable fees. Sometimes, retired or later-in-career veterans in the business will guide you just for the intellectual challenge of a new problem. Remember to formalize the relationship and talk to them regularly.

Related: How to Build an Advisory Board That Drives Startup Success

These practices all share one quality: They complement gut feelings with systematic processes. Your instincts still matter because you know your business intimately — but these systems catch what instincts miss.

As a small business owner, you’re already more nimble than large corporations. Add their systematic processes to your operation, and you’ll become truly dangerous.