Knowing your customer and their behaviors is imperative to formulating effective marketing campaigns and business strategies. Understanding your customer means you have a clear picture about your customers behavior, needs, pain points, demographics, wants, and expectations. When a business understands their behaviors and experiences, they can really drive their business forward and create the opportunity for better curated products, services, and business plans. Analyzing customers that are interacting with your brand already will provide insight into your current customer base and allow for the potential to expand that current base.
What is customer behavior analytics?
Customer behavior analytics is an observation of how customers interact with a brand or company. This analysis can be crucial to the growth and maintenance of a business. The behavioral data obtained can provide insight into the various variables that influence your customer base.
Why is consumer behavior important?
Consumer behavior refers to an individual customer’s buying habits. Analyzing this behavior can provide insight into what factors are most likely to influence individuals to purchase a product. This information becomes useful for marketing campaigns, social media content, as product design and placement decisions.
Ways to analyze customer behavior
- Personality traits
- Psychological responses
- Social trends
- Economic traits
- Cultural traits
What are the three optimal customer stages?
This stage refers to the targeting and segmentation of customers for a business. The goal of customer acquisition is to attract interest, nurture the interest and eventually convert the interested party into a customer.
2. Customer Engagement
This stage refers to the level of interaction a customer has with a company. The goal of customer engagement is to create a relationship with a customer base to create loyalty and awareness for a particular company.
3. Customer Retention:
This stage refers to the continued loyalty of a customer due to a company’s ability to turn them into repeat buyers. The goal of customer retention is to foster a quality relationship with a customer to ensure brand loyalty and engagement.
Customer Behavior Analytics Tools:
Customer Relationship Management tools
These tools allow for the centralized storing of customer information, identification of sales opportunities, recordation of service issues, and the management of various marketing campaigns.
Customer service tools provide insight into the customer service experience and are utilized to improve various aspects of business operations.
Social media provides a business with a platform to advertise their product while monitoring customer interactions and online behaviors.
These tools allow for business to track the customer journey from end to end. Companies can monitor the path a customer takes when interacting with their websites, products or services. This information can be utilized to create a more seamless customer journey and better determine the needs of the customer.
Heat Maps provide insight into specific portions of the collective customer journey. They can track the percentage of customers that spent time at a certain portion of a website and how long they spent there. This data on customer behavior can be used in a variety of ways to improve business operations and the customer experience.
Conversion rate refers to the response to a “call to action”. It measures the percentage of people who responded to a marketing campaign by interacting with a particular component of content. Measuring conversion rate allows companies to track the effectiveness of various marketing efforts and track customer behavior around marketing campaigns.
How can customer behavior analysis be used in marketing strategy?
Having accurate and up to date customer behavior analytics is a key component to creating an effective marketing strategy. Marketing teams can use the information gained to carefully curate campaigns and other strategies to reach current and potential customer bases.
Who is your customer base?
Determining your customer base is important to creating effective business strategies and developments. These are groups of people who continually purchase a product or service. Here are some ways to determine your customer base:
- Create a buyer persona
- Implement and analyze customer surveys
- Evaluate current customer demographics
- Assess potential desire for an expansion of customer base.
What is customer segmentation?
Customer segmentation is the process in which a business divides their customers into groups based upon common characteristics. Segmentation provides the opportunity to organize and manage customer relations in a simple and more effective way. It creates the ability to tailor marketing and sales efforts directly to specific groups instead of relying on broad marketing tools that may not resonate enough with your customer bases.
Common customer segmentation models:
- Demographic segmentation
- Psychographic segmentation
- Behavioral segmentation
- Geographic segmentation
- Need segmentation
- Value segmentation
Why is the customer journey important?
Being knowledgeable of the path a customer takes to purchase your product or service is principal in both analyzing customer behavior and improving the overall customer experience. When a business takes the journey a customer takes into account, they can work to either shorten that journey or improve sales by curating various marketing tools throughout that customer journey.
What is a marketing strategy?
Marketing strategies refer to a business plan to reach both potential and current customers. The goal is to turn the prospective consumers into current customers and increase the likelihood of current customers reutilizing a businesses products and services, while also increasing the frequency of this utilization.
Potential marketing strategies:
Hiring an inhouse content marketing to post on social media is a great way to reach a large degree of different types of customers depending on the social media type and the content created. Businesses can also utilize well established social media influencers or content creators to advertise their products. This way brands do not already need to have an established follower count to reach their desired customer base.
A marketing campaign is a strategis sequence that is used to promote a company and their products. This can be done in a multitude of ways and allows for creativity while still following a formula that is already proven to work.
Utilizing social media, billboards, games, and anything you can think to get your business or product name out there for customers to see can be very effective in marketing.
Outgoing call center utilization
Hiring a call center to perform outgoing calls to teach customers about your business or conduct surveys is another effective marketing tool that can be utilized.
Referral programs and discount codes
Offering current customers an incentive, whether it be a discount or an entrance into a raffle, to refer friends and family to your business can be extremely effective when executed correctly.
So, what are the steps analyzing customer behavior?
- Determine your customer base and identify business goals
- Break that customer base into segments
- Identify potential selling points for each segment
- Map out the customer journey
- Monitor data sources
- Apply knowledge gained from data to marketing campaigns
- Analyze customer interactions and conversion rates
Contact Callzilla to learn more about Customer Behavior Analysis.