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.

What is Customer Behavior Analysis?

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.

Why Customer Behavior Analysis?

• 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)

Factors Influencing Customer Behavior

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.

Ways of Gathering Meaningful Data about the Customers

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.

Website Activity
• When did they start showing interest in the good?
• How long are they staying on your website?
• Which link are they clicking?
• How often do they visit the website?

Social Media Activity
• Which brands do they like?
• Which good or service do they need/prefer?
• Psychological and Personal Behavior

Referral Source : The source through which customers found the company
• Social Media
• Advertisements
• Recommendations from known people

Customer Information
• Location
• 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.