If you work in marketing, you know how important it is to accurately predict consumer behavior. Market research will help show consumer intentions; however, being able to penetrate the mystery of what motivates customers to buy or act can be a bit more challenging.
While this is true, it doesn’t mean it’s impossible. Thanks to big data and metrics like the net promoter score, it’s possible. Learn more about predicting customer behavior and the tools available below.
Getting to Know the Different Types of Customer Behavior
Before tracking or predicting customer behavior, it’s important to know what types of behavior you may encounter. One type is purchase behavior. This refers to what a consumer will purchase. Factors that impact this behavior include the demand of the item or service, how long customers will use a specific brand, and how well a customer will recall their experience when buying the item.
Another type of behavior is usage behavior, which refers to the way something is used. With this, you want to consider attrition, which is how many consumers leave a brand or product because they are dissatisfied or because they don’t see the value it offers.
The last behavior type you can analyze and predict is customer loyalty. How long with a customer stay loyal to a brand as time passes? To focus on this fact, you must look at pre-and post-purchase behavior. This includes the way the consumer feels about a product when it is purchased and how a consumer decides which item they will purchase.
Using Data for Customer Behavior Predictions
There’s no question that big data is a huge analytical resource today. From the data gathered during a retail transaction to the “cookies” created as someone browses the web, big data is, well, big. The power of this is undeniable and something that modern marketers need to focus on to provide better buying experiences for their customers.
Digital Tracking of Customers
Another way that marketers are learning more about customer behavior is via digital tracking. This is when technology, such as GPS, is used to track customer movements.
One option is geofencing. With this, you have a virtual barrier that is established in a certain location or area. Another is geotagging. With this, you add geographical information to videos, images, and other media.
If you are an e-commerce marketer, you can use digital marketing analytics in several ways. When you digitally track consumer behavior, it will help with e-commerce marketing and provide insight into the types of popular products and which ones may need to be removed or adjusted. You can also use digital tracking for customer behavior. With this, you can discover what digital channels consumers use to look at products. When you digitally track consumer behavior, you can gain insights into what they prefer and how they want to work with the business.
Behavioral Segmentation of Consumers
When using customer behavior analytics, you will find that behavioral segmentation is an efficient and effective way to predict what a customer is likely to do. It is likely possible to identify consumer segments based on interest, including heavy shoppers or frequent purchasers, and to tailor the marketing messages they receive. You can also use this same segmentation concept to create customer offers that are based on customer interest. An example of this would be if you gathered information that told you a segment of your customer base was interested in traveling. You could provide special deals and discounts for these individuals in this situation.
Predicting Customer Behavior
There’s a lot that goes into predicting customer behavior. It’s not simple, which is why it is something that is so difficult to get right. However, in the marketing realm, predicting customer actions is invaluable when it comes to marketing to them and ensuring they choose your brand over the competition. The information above provides a brief overview of how this works.