Customer is king, and understanding their wants and needs is of utmost importance.
Behavioral analytics for marketing allows brands to gather data and help profile customers to increase their satisfaction and loyalty by improving the products and services.
Many large corporations like Meta or Google gather your online behavioral data, but what do they do with it? These corporations utilize behavioral analytics to enhance their products and services to earn profit and generate a bigger buzz over their competitors. Data has always been a necessary evil in the world of digital marketing. Businesses are always on the lookout to know and learn more about their consumers. If a company can figure out what customers buy, when they buy it, what price range suits them, etc., they can use this information to increase their sales by satisfying the needs of their customers. Due to its growing trend, the global behavioral analytics market was $414.5 million in 2021 and is estimated to reach $2984 million or 2.984 billion by 2028.
Behavioral analytics refers to gathering and utilizing customers’ online activity data to generate in-depth insights into how consumers behave and interact with the organization’s digital products and services. This enables the user to understand their customer’s preferences and dislikes and accordingly can make certain improvements to satisfy their needs better. Once implemented, any department in the organization can use the data collected through behavioral analytics.
One of the most significant reasons for Apple’s success is that they learned the power of consumer behavioral analytics, AI, and big data. Whenever a customer downloads iTunes or purchases a product, there are certain data that the organization is privy to, which they then utilize to understand what drives their customer’s purchase behavior and more.
Behavioral analytics for marketing allows marketers to get the maximum out of campaigns, enhancing customer acquisitions and increasing conversions and retention volume by building rigorous data. Organizations can design multidimensional and intensive customer profiles. Deploying this data can help predict customers’ behavior and create more personalized and relevant engagement campaigns.
Behavioral analytics is a tool a marketer absolutely requires to assess what content engages the customers and what doesn’t. If an organization knows how to utilize it the correct way, then it can help them infer essential data about their customer and create successful marketing strategies. It can also help decipher at what point or place the customer lost interest and reduced their engagement. Enabling behavioral analytics for marketing allows marketers to understand customer behavior and guide the brands to tackle any low points which require more attention, fine-tune their offers and eventually boost their conversions.
Behavioral analytics tools power marketers with integrated, centralized, and holistic insights, allowing marketers the opportunity to understand customer buying patterns at once. This allows the company’s teams not to waste time trying to gather data from several different sources but instead find it in a single location. The advantage of employing behavioral analytics for marketing is that it helps save time and also allows for speedy and well-informed decisions as the marketers have easy and quick access to data. Marketers can also make well-informed decisions because the data tracked, processed, and generated is not done manually and thus helps to remove any human error and the cost associated with the same.
To achieve the best results for a campaign's objective, segmentation of consumers is extremely vital. Without segmenting the audience, organizations won't be able to reach out to their target audience correctly. They will therefore lose out on an opportunity to provide them with offers, promotions, products, or services. As more and more behavioral analytics are coming to use, demographic segmentation of the audience is not enough. With advanced tools for behavioral analysis, an organization can track its consumers' data from different sources and use that information to design a dynamic audience segmentation.
One of the obstacles faced by marketers is to gain and measure ROI. Traditional marketing tools can’t gain deep insights into the data required to calculate the ROI. This usually happens as various tools don’t provide the option to use behavioral data to segment a business’ customer base. However, modern behavioral analytics tools provide marketers with an opportunity to view various detailed ROI data. It ranges from comparing the outcome of running different advertisements on different social media platforms (such as LinkedIn or Instagram) to understanding the KPIs results of an organization.
The ability to view real-time ROI data is quite advantageous as it will allow marketers to understand how their budget is being spent on multiple levels and, from this, forecast their next steps. Implementing behavioral analytics in understanding ROI more accurately will be quite successful as it will ease the method of presentation of the data to clients and high-level executives.
An extensive list of valuable details of an individual consumer’s profile can be revealed using behavioral analytics. It can help the company know what content or product a consumer is more interested in, how familiar they are with the brand, which offers they gravitate to more, etc. After analyzing all the data, it will provide the brands with an insight that will guide them to create different characteristics and accurately target their marketing strategies to the desired segments. Certain customers might engage with relevant offers, whereas others may gravitate more towards additional recommendations of the product they are searching for at the point of purchase.
An extensive list of valuable details of an individual consumer’s profile can be revealed using behavioral analytics. It can help the company know what content or product a consumer is more interested in, how much they know about the brand, which offers they gravitate to more etc. After analyzing all the data, it will provide the brands with an insight that will guide them to create different characteristics and accurately target their marketing strategies to the desired segments. Certain customers might engage with relevant offers, whereas others may gravitate more towards additional recommendations of the product they are searching for at the point of purchase.
Reports are vital in presenting to the manager or client what different marketing activities were run and what the outcome of these marketing activities was in a time frame. However, like most marketing activities aren't supposed to take a universal approach, the reporting of the activities also shouldn't be standardized. By employing behavioral analytics tools for reporting, a marketer can showcase different objectives, metrics, and outcomes based on the report's purpose. For example, a client may only be interested in knowing how the budget was optimized. In contrast, the manager may need a detailed report to understand the engagement level of customers with the brand's posts or emails, etc.
Behavioral analytics for marketing is a revolutionary way to help understand customers and build successful strategies for increasing a brand’s value. By knowing exactly what a customer wants or needs, brands using consumer behavior data can provide personalized offers or products rather than bombarding them with various advertisements that won’t hold their attention and eventually lead to them losing interest. Behavioral data is unique in that it is concrete and provides user-generated data, which can help marketers make accurate predictions for their customers after understanding their dislikes and preferences.
Naveen is the Founder and CEO of Allerin, a software solutions provider that delivers innovative and agile solutions that enable to automate, inspire and impress. He is a seasoned professional with more than 20 years of experience, with extensive experience in customizing open source products for cost optimizations of large scale IT deployment. He is currently working on Internet of Things solutions with Big Data Analytics. Naveen completed his programming qualifications in various Indian institutes.