Can anyone tell me what are the reasons that companies use customer tracking?

Question

And please give me examples of what companies can do with the tracking information.

Answer 1

By tracking customers a company is in a better position to change their marketing strategy and to offer products suited to their customer base.

As an example a software company launches a product designed for a professional group, yet the free demos are downloaded by home based business clients....the company might then decide to lower the price of the software so that the full version is more accessable to smaller businesses, they make less money per sale but their sales increase greatly in volumne. They would also change the advertising strategy and the types of retail stores that carry their particular product.

Only one example but I have seen it in action.