4 Ways to Use Consumer Behavior for Marketing
A customer’s psychology — how they feel, think and behave — has a significant impact on how they shop. It’s why big companies spend so much money collecting and analyzing data on consumers. They want to know why they make certain decisions. Companies of any size can benefit from analyzing consumer behavior and applying insights to their marketing.
As an online marketer, you have a decent variety of data-collection tools at your disposal. Information from surveys, web analytics platforms and social media can all provide a clear picture of your audience. You can then use this data to inform ad campaigns and how you market your brand.
Read on to discover four ways your business can use data about consumer behavior for marketing.
Engage High-Value Customers
When it comes to how much they spend, not all customers are equal. Low- and high-spenders often have drastically different needs. Segmenting your audience by purchasing behavior will allow you to target your entire customer base more effectively.
Pick out the people who tend to spend more than others. Identify their needs and target them with your ad campaigns and new offerings. At the same time, pick out the products and services low-spenders prefer. Once you’ve selected these items, you can find ways to emphasize their value.
Most e-commerce platforms come with analytics tools. As a result, it’s easy to track total customer spending, purchase recency and other stats that reveal buying behavior. Once you’ve segmented your customers based on this trait, you can see how their habits influence the products they buy.
Embrace Changing Spending Habits
Overtime — or, in some cases, all at once — customer preferences shift. During the COVID-19 crisis, for example, consumer spending habits changed nearly overnight, accelerating toward e-commerce. Bulk-buying became more popular, as well as usage rates of driverless delivery services, no-contact checkout and mobile payment.
With the right information, you can anticipate and respond to changing spending. Simple surveys and usage data can let you know what customers need. You can then highlight these services based on your audience’s preference.
For example, a brick-and-mortar retailer with an online store could advertise contactless delivery options to customers who typically shop in-person. Another business with specialized delivery options — like driverless delivery or drones — could highlight these options in a similar way.
Emphasize Your Values
Shared values — the beliefs and ethics that your company shares with its customers — are a big deal. In one report, 64% of customers say shared values are the primary reason they have a strong brand relationship. Customers are more willing to buy from a company if it seems like that company shares their beliefs.
Sustainability is great example of this. Research shows that consumers — especially those from younger generations — will pay a premium for products from eco-friendly brands. Working in a LEED-certified building to prioritizing lean practices in the supply chain can be advertised as an eco-friendly practice. Thus, sustainability-minded customers will flock to your organization.
Transparency, authenticity, and commitment to customer satisfaction can all be shared values that drive brand loyalty. When researching your customers, be sure to investigate their beliefs. You can then use this information to drive more effective and informed ad campaigns on platforms like social media.
Simple survey questions delivered via email campaigns can provide useful information. Many business communication platforms, like MailChimp, include features that make running survey campaigns easy and help you organize collected data.
Personalize Customer Experience
Many brands take advantage of customer data to deliver personalized experiences. Some target customers with email campaigns that include deals and promotions most relevant to their interests. Many also personalize store elements like search results and product recommendations.
Statistics show that customers are highly likely to take these recommendations. For example, Netflix’s recommendation algorithm drives 80% of the company’s viewer activity. According to Amazon, their suggestions — which rely heavily on consumer behavior data — generate 35% of the brand’s sales. Customers don’t have an infinite attention span, and you have limited time and space for showing off products. A well-placed, personalized recommendation can be vital in making a sale.
If you want to use data to drive user experience, many ecommerce platforms provide personalization features out of the box. Other platforms, like Salesforce’s Evergage, allow you to pull in different information — like real-time social media data — to provide recommendations.
Improving Marketing With Customer Behavior Data
Knowing how your customers think and why they make purchases can be extremely valuable when creating a marketing strategy. With the correct data, you can offer up hyper-relevant deals, products and information that encourage purchases. Plus, as a result, your audience will be satisfied with your brand and more likely to return.
If you want to use customer behavior information to improve your business’s marketing, you have plenty of options. There is a wide range of tools out there that can help you collect this data. Many ecommerce platforms even come with tools that make data-collection straightforward or automatic.
Once you have valuable information, there are a few different ways you can apply it. For instance, you can more effectively segment your customers based on factors like spending. Thus, each campaign will target specific individuals and be more effective.
Customer behavior is always changing, sometimes overnight. If you want your marketing strategy to be as efficient as possible, continue collecting and analyzing relevant consumer behavior data.
Jenna Tsui is an environmental and tech journalist from Texas. With a degree in IT and a passion for sustainability, she writes about the intersection of the two subjects and loves to discover new environmental tech. She also co-owns The Byte Beat blog and writes for sites like Blue & Green Tomorrow, Green Journal, and Get Green Now. Check out her work on TBB or follow her on Twitter @jenna_tsui