In recent years, customer behavior analytics have emerged from the convergence of customer relationship management (CRM) and data analytics. It’s a way to analyze customer behavior and predict future purchase patterns.
It is essential to know your audience or conduct a customer behavior analysis if you want to increase your website’s conversion rate. When you know a person well, you are much more likely to predict their behavior. There are a vast number of CRO tools that can make it easy for businesses.
Among CRO tools some of the unique ones include features such as a heatmap that enables you to track the activity of your customers and visitors on your website. If you are looking for a tool to assist you in optimizing your website accordingly sign up on WatchThemLive for free.
In this article, we will discuss everything you need to know about analyzing customer behavior in 2022.
What Does Customer Behavior Mean
The habits and tendencies a person has while making purchases are referred to as customer behaviour, including the degree of attention they give to products, the reasons they may or may not purchase a product, and trends in society. To create more appealing products and services that match customers’ needs and tastes, businesses analyze customer behavior.
Ecommerce businesses don’t need to know who their customers are, but they should understand customers’ intentions and preferences to make purchases, and then use these data to make shopping experiences more exciting.
We can learn a lot about what our customers value by exploring their shopping behaviors, choices, and opinions. This information helps us interact with our customers on an individual level.
How Does Customer Behavior Analysis Work
The process of monitoring and evaluating user behavior to improve the customer experience is called customer behavior analysis.
Customer behavior analytics is a subset of data analytics that helps businesses grasp their customer’s journey better and provide them with a better experience. It can help marketers identify what drives customers to purchase a product or service, what keeps them coming back for more, and how they react to different marketing campaigns.
For example, assume your customer submits an order once a month. You can monitor the items which he/she has purchased. Then you can quickly discover what items are similar, what colors she likes when she makes purchases every month, etc. Therefore you can offer her similar products based on such behavior analytics.
The Importance of Customer Behavior Analysis
Companies are now investing in more sophisticated data analytics techniques to better understand their customers’ behaviors. They are using this information to make smarter decisions about their products and services that will keep them competitive in the industry.
Particularly, a study of user behavior analytics can assist in several areas, for example:
1. You Will Determine What A Customer Is Worth
The more deeply you investigate your customer segments, the easier you will be able to strategize your actions to provide the best results for the customers that matter the most.
2. Making The Customer Experience One Of A Kind
When you understand your customer base better, you can build bespoke customer plans tailored to your best-converting target groups, resulting in higher conversion rates overall.
3. Attracting Customers For More Repeat Purchases
When you understand your customer behavioral analytics, you will be able to identify what keeps existing customers returning, resulting in higher retention and lower drop-offs.
Therefore, you might wind up making changes to your strategic planning, modifying your product, or developing new products from scratch based on the findings of customer behavior analytics!
As an example, consider your customer’s preferences for support. Some of them may prefer to contact your support team through live chats or chatbots, some may like to connect by a call, and some by submitting tickets. So you need to build up your support channels according to their behavior analytics.
How to Do a Customer Behavior Analysis
Take a moment to look over the user experience before starting. As you proceed through this analysis, you will need to follow the steps outlined below:
#1 Identify Audience Segments
Customer behavior analytics begins with dividing your customers into different personas or groups. It can be done based on demographics such as age and gender, psychography including characteristics, deals, and geography including country and city.
Additionally, other factors can be considered, such as their activities per week or month and the product usage, the social media channels they use, and their review of orders.
Identify who your most valuable clients are, and then work backward to define how to design marketing plans that are relevant to them, while segmenting your business.
#2 Distinguish Major Value Propositions For Each Segment
Every customer will have a different motivation for selecting your company, and it’s necessary to discover it. Take the customer’s buying decision into account along with the product or service.
For instance, you should find out the answer to the following questions:
- Did they purchase because they had a certain preference? Or because it was a good deal?
- How time-sensitive was the purchase, and how much can your buyer spend?
Discovering customer requirements are the key to uncovering room for improvement.
This will help you better figure out what parts of your product rapture each consumer and help you write a marketing message tailored to them.
#3 Make Sure You Collect As Much Data As You Can
You’ve got a few basic insights on your customers from qualitative feedback, but at this point, it’s time to bolster them with quantitative information to the fullest extent.
Data analytics skills are what make the difference in analyzing customer behavior now. In addition to your marketing analysis skills, data analysts, analytics platforms, and tools can be extremely helpful.
Take advantage of every opportunity to gather customer behavior data. Previously, you may have noticed that the extracted numeric data through customer data analysis are relevant to qualitative data you’ve already collected from customer behaviour analysis, both personally and collectively.
In addition to behavioral analytics, all marketing analytics data should be collected from both paid and organic channels. Therefore, bring all business, organization, and customer behavior data together to create a solid database for your evaluation.
#4 Compare Your Quantitative Data With Qualitative Data
Now, we have reached the most important stage of customer behavior analytics. After you’ve acquired all your data, it’s time to analyze customer behavior. Take a look at the quantitative data and compare it with your qualitative data and customer experience model to spot patterns.
This means you’re going to examine your customer journey map with the customer data analytics in hand. Traceback which customers bought what products when they made a purchase, and whether they have ever returned to make a repeat purchase. Then, compare both sets of data together and then compare it to the customer experience, so you’ll have a clear understanding of how the customers feel about you.
Thus, examining data side-by-side should allow you to find common similarities and differences. Research any potential issues that typically arise at different stages of your customer’s journey and keep an eye out for anything unique that happens with each different customer category or segment. Take a closer look at your premium customers and pay attention to anything unusual about their behavior.
#5 Adapt Modifications Based On The Above Steps
After examining your results, you should have plenty of suggestions and possible ways to make changes and/or optimize, so you should move to the next level of customer behavior analytics. Anything you’ve realized during this process should be translated into action with your marketing strategy.
For example, suppose you find out a customer segment with significant value as they are interacting with your social media content, write a review for your product, and show interest in your blogs that are in the same age range.
You can establish a campaign focused on the age group that puts their reviews in focus like adding bonus credits to their account for their next purchase in return for each submitted review by them for your products, or their purchase experience, or on other review websites for your products.
It may also be worthwhile to improve the content on the pages these customers are most likely to visit. It’s an elementary illustration of my point on this stage of customer behavior analytics, for sure.
In some cases, going through your consumer behavior analytics, you may have to apply new processes or design and initiate new marketing campaigns for a specific customer group.
#6 Assess Your Results and Apply Them Again
Customer behavior analytics works like a closed loop. Every marketing campaign should be optimized continuously through user behavior analysis from steps 1 to 6. Therefore, it is not a one-time process.
You need to upgrade your marketing plans, and pricing packages or add new features to your product once in a while based on changes in customer behaviors as well as industry changes if you want to stand out among your competitors.
Maintaining consistent contact with your customers and the consumers in your market is the only way to ensure you truly understand them.
Best Customer Behavior Analysis Tools
It is not easy to analyze customer behavior. It takes time, effort, and a great deal of data. But this is not the case anymore with the emergence introduction of customer behavior analytics tools. These tools are designed to make it easier for businesses to understand what their customers want and how they behave.
This section will introduce some of the best user behavior analysis tools that can be used as a part of an organization’s CRM strategy.
1- WatchThemLive: The Best Customer Behavior Analytics Tool
With a deeper understanding of what the customer goes through when visiting your website or using your application, WatchThemLive, a comprehensive customer behavior analytics platform, helps boost the conversion rate of web-based businesses by giving you real-time insight into user interactions and provides an experience better tailored to the needs of its users.
Once WatchThemLive has been configured on your website, you’ll be able to watch live video recordings of visitors as they interact with your web pages. Imagine being just like the radar, above their head following their every move.
It is designed to help you optimize your conversion rate providing you with consumer behavior data. The sooner you find out the cause of people’s dissatisfaction with your website, the sooner you’ll be able to address the problem.
It is a unique all-in-one customer behavior data analysis tool enabling you to create amazing and engaging UX and UI for your visitors and users, the kind they will find enjoyable and functional.
WatchThemLive does this through the below features:
Using session recording, you are able to track every click and movement made by your website visitors.
Keeping Track Of Users’ Behavior
User behavior tracking tool creates a visualization of where users visit and what they interact with while on a website. Using user tracking and session video recordings, you can analyze customer experience in an advanced manner.
A website heatmap is a very useful tool for visualizing user behavior on your website in order to figure out what your visitors are most interested in and where they are clicking, scrolling, or moving their mouse.
Customer Behavior Analytics
Simply put, clear analytics can help you figure out how best to meet the needs of your users and how to create a better customer experience.
Event Tracking Tool
Keep track of visitors’ actions such as button clicks and page visits. A great way to measure the success of your design or marketing efforts is to use event-tracking tools.
You can gain valuable insights into your visitors in no time using its advanced filters.
You can check out our comprehensive WatchThemLive review if you’re curious to know about it more.
Sign up to use WatchThemLive, a cutting-edge CRO platform to learn how your website is being used and use the insights to boost your sales.
A web-based behavior analytics customer service platform, Kissmetrics, offers behavioral analytics tools to marketers.It is simple to use. Furthermore, the tool provides insights into website visitors that can be used for improvement. It also provides support for Woocommerce and Shopify integrations to boost e-commerce sales.
To start with, the tracker monitors the customer’s progress and offers a variety of features for customer behavior analytics. Moreover, it provides statistics on new subscriptions, conversion rates, revenue streams, and data-driven suggestions based on user feedback.
Note that, it works well for less complicated businesses and analysis, but not more complex ones.
Using Brandwatch, you can track mentions across social media platforms. It is a user behavior analysis tool that allows businesses to get valuable perspectives on how people talk about their products, services, and solutions.
Additionally, it analyzes customer conversations online automatically. Thereby, it is a customer behavior analytics tool that will help you formulate strategies that can bring happiness and understanding to your clients.
The Brandwatch plug-in can be connected to Google Analytics, Hootsuite, Buzzsumo, Salesforce, and other services. Furthermore, it comes with a smart AI-powered tool that helps users understand their data more deeply.
Customer Behavior Analysis FAQs
Now we are going to answer the following frequently asked questions about customer behavior analytics:
1- How Do Customers Behave In The Purchase Stage?
Customer behaviour can be divided into four main types according to professionals:
- The complex process of buying a product,
- Buying behavior that reduces dissonance,
- Purchase habits,
- An inclination to buy a variety of products.
2- What Are The Common Needs Of Customers?
- A pleasant disposition.
- Feelings of empathy.
- A fair system.
- Taking Control.
- Having various options.
- Detailed information.
- Time and speed.
3- What Role Does CRM Play In Consumer Behavior?
Organizations implement CRM to streamline customer interactions and track customer information by integrating policies, processes, and strategies. Companies use the internet and a range of gadgets to reach out to new, old, and loyal customers, improving their profits and relationships.
Customer Behavior Analysis [Concluding Words]
The key to successful consumer behavior analysis is understanding what motivates customers to buy your products. We need to know what they want, when they want it and how they prefer it. We also need to know how they interact with the company and its products or services. This will help us understand their buying habits, preferences, and needs as well as make better decisions about our marketing strategy.
To sum up, if you want to conduct consumer behaviour analytics and find out how they interact with your website, go ahead and sign up on WatchThemLive, 100% free.