Consumer data refers to the information collected about individuals and their purchasing behaviors. This data can include details like age, gender, location, and shopping habits. Companies use this information to understand their customers better and tailor their products or services to meet their needs. For example, a clothing retailer might analyze consumer data to determine which styles are popular among different age groups. Additionally, consumer data helps businesses create targeted marketing campaigns. By knowing what products appeal to specific demographics, companies can send personalized advertisements to potential buyers. This approach not only improves customer engagement but also increases sales, making it a valuable tool for any business.