Consumer behavior refers to the social and emotional factors that affect the relationship between your current and potential customers and your brand or business.
In studying consumer behavior, you will know how consumers behave based on their age, gender, and social class. It also includes finding out why consumers prefer your brand over your competitors.
Everything consumers do, think, or feel is covered by consumer behavior. It is the responsibility of the customer support team to know why customers behave in a certain way while buying a product, as they are the ones who interact with the customers daily. This article will give you more information on how you can track the behavior of your users.
90% of all buying decisions are not made intentionally. Most of the time, customers are buying almost effortlessly. And they can’t tell you why they did it even if they tried. This is where consumer behavior tracking comes in. This tracking can help you explain why and a little more information than that.
What is Consumer Behavior?
Consumer behavior is all about studying how potential individuals or groups of consumers behave when they come across various companies and products. It is important to note that behavior tracking is not just about getting consumers to look for your particular product.
Observing other companies’ products or just general consumer behavior can teach your company a lot about improving your approach. Consumer behavior can vary in intensity.
You will be closely figuring out every move of a customer in a store. Or maybe you’re trying to figure out why a customer chooses one product over another. Of course, you will also want to know how customers feel about your product or brand.
Investigating this type of behavior can help you gather information about improving your product or company approach. It can also teach you a lot about the demographics of your target customer. And how often they use or buy your product.
Why Does Consumer Behavior Matter in Marketing?
Knowing consumer behavior is vital to your business marketing strategy. This insight allows you to allocate your resources, plan accordingly, and target more customers. There is an incentive to deliver the right ad at the right time to your target audience.
Real-time consumer behavior data makes digital marketing offers timely and relevant. One of the benefits of detailed data is that it helps to predict future activity. As a result, digital marketers use data to provide relevant information, personalize and enhance the shopping experience.
There are three fundamental influencing factors:
Psychological: Your campaign will be more attractive to your audience if it meets their need or their perception and attitude towards the situation.
Personal: This includes age, gender, background, culture, and other personal issues influencing purchasing decisions.
Social: The people with whom a connected person can influence their purchase choices, including family, school, work, and social media.
Understanding the way consumers think allows marketers to optimize ad spend and make better choices.
Factor Affecting Customer Behavior
‘Customer behavior’ describes the journey a consumer goes through in researching, selecting, and purchasing a product or service. Many things affect customer behavior, such as:
- Past customer experience
- Last purchase
- Social characteristics
- Cinema
- Culture
- Education
- Business
- Beliefs
You can use Big Data and predictive analytics to analyze their behavior to accurately predict your customers’ behavior and use it to inform your business decisions.
To find out what your customers want, you need to combine your
- Operational data (O-data) such as sales, finance, and human resources
- Experience Data (X-Data) – like CSAT and NPS
Merging X and O data gives you a holistic understanding of your company. It provides a complete understanding of your brand by showing the relationship between revenue, growth, and human behavior.
Collecting Consumer Behavior Data
Because the motivations that influence consumer behavior are so broad, a mix of research including different types of data will be most potent. Some are more cost-effective than others.
Customer Reviews: Reading customer reviews can uncover common problems or wishes.
Question and Answer Websites: These websites can give you an idea of the questions and concerns people have regarding your brand, service, or product.
Surveys: Online surveys can be set up quickly with websites. They allow you to ask specific questions.
Focus Groups: Bring a group of consumers together and ask them direct questions.
Keyword Research: One of the mainstays of SEO, keyword research can tell you what users are interested in. It also helps to reveal the language pattern they use.
Google Analytics: Analytics can be used to tell you where your traffic is coming from. The Audience tab shows a range of Geography, Interests, and Demographics.
Competitive analysis: This can provide helpful information about consumers who shop in your business area but do not buy from your brand.
Blog Comments: Comments on your blog can be an excellent way to discover any questions your audience may have.
Twitter Insiders: Twitter Insiders recently launched a strong focus group of 12,000 US and UK Twitter users.
Google Trends: Google Trends can help you understand if a topic is becoming less popular.
Government data: Government data is freely available and can help you understand a group, and many other sources can be accessed for free.
Social Media: With millions of people reflecting on their lives on social media, information that can enrich many aspects of consumer behavior can be revealed with the right tools.
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