Customer Behavior Analysis & It's Importance
Businesses in today’s world have become extremely competitive. It is essential to meet the customer’s needs and satisfaction with the goods or services being provided for any business to thrive and flourish. A company that is able to meet the needs of consumers and identify consumer behavior better than the competition is more likely to be successful.
A customer behavior analysis is a qualitative and quantitative observation of how customers interact with the company. A customer behavior analysis gives an idea of the motives, priorities and decision making-methods a customer goes through before purchasing any good or service. This analysis helps the company understand the impression it has on the customer.
• Customer demand prediction
• Formulating the right marketing strategy
• Contacting the right customer with personalized offers and messages – Increasing customer loyalty and response rates
• Reduced cost of campaigns by targeting interested customers.
• Helps in development of new products
“Amazing things will happen when you listen to the consumer”– Jonathan Midenhall (CMO – Airbnb)
The behavior of customers can be dependent on many factors which influence their decision making process:
Psychology: The human psychology plays a crucial role in designing the consumer’s preferences and likes or dislikes for a particular product and services. Some of the important psychological factors are motivation, perception, learning, attitude and beliefs.
Economy: Economic factor include the price of the good/service, the income/savings and lifestyle of the customer. If any competitor company is offering a more economical solution, then the customer is easily influenced to sway towards them.
Social Factors: Human beings live in a complex social environment wherein they are surrounded by several people who have different buying behaviors. Customers usually try to imitate behaviors that are socially acceptable. Hence, the social factors influence the buying behavior of an individual to a great extent. Some of the social factors are: family, reference groups, roles and status.
Customers real-time behavior helps gather meaningful data about them. Conducting personal and online surveys and their online activities are the main platforms for gathering customer data.
• How long are they staying on your website?
• Which link are they clicking?
• How often do they visit the website?
• Which good or service do they need/prefer?
• Psychological and Personal Behavior
• Recommendations from known people
• Contact Information
• Customer Reviews
• Surveys and Questionnaires
Consumer Behavior Analysis helps the company enhance the experience of the customer; a better customer experience in turn increases the success rates of the company.
Chief Growth Officer @Pavel Gupta
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