“Customer is the king!” We all are familiar with this quote, aren’t we? If you run a business and wish to woo your customers, then your primary objective should be keeping a good knowledge of your audience’s behaviour. Since good service is good business, it becomes vital to know how your customers function. Digging deep into your audience demographics – interests, economic status, age, location, etc becomes a prerequisite if you wish to market your brand brilliantly.
Customer behaviour analytics is all about understanding where and how your customers interact and engage with your brand and what causes them to take a particular action across digital and non-digital channels.
Importance of Customer Behaviour Data
Customer behavioural data helps you in acquiring, engaging, and retaining your customers because you know what they like or dislike and can create your marketing strategy accordingly.
Research by McKinsey tells us that “organizations that leverage customer behavioural insights outperform peers by 85 per cent in sales growth and more than 25 per cent in gross margin.”
It is always beneficial to have your data in place as it can result in –
- Better social media metrics (Increased reach and engagement level)
- Increased conversion rates by acquiring more customers
- Less wastage of time, money, and energy in rolling out content that won’t impact your target audience
- Increased sales (Because your loyal customers will be by your side)
- Decreased overall cost of customer service – boosting up your revenues
We have so much audience related data at our disposal today, all thanks to the tools that help us in tracking the required information keeping in mind customers’ privacy and security. Analytics from various mediums (including social media platforms) are crucial to empowering your business. As a brand, you should use this big data to interact with your customers diligently and improve your customer-brand relationship by creating products and services that resonate with them.
The RFM Approach to Customer behaviour Analysis
Customer behavioural models are usually based on an analysis of Recency, Frequency and Monetary Value (RFM). This means that:
– Customers who have spent money at a business recently are more likely than others to spend again,
– Customers who spend money more often at a business are more likely than others to spend again, and
– Customers who have spent the most money at a business are more likely than others to spend again.
Brands Leveraging The Power Of Big Data
In this customer-centric digital world where brands cannot imagine moving forward without customer support, it becomes important for them to market their business actively on all the online channels. And in order to be at the top in their industry, brands need to compete on the basis of these statistical and mathematical data driven by the behaviour and buying habits of their customers.
Have you ever noticed Netflix or YouTube showing videos that you may like based on your search history? Or Myntra app constantly notifying you about those flash sales and reminding you every now & then about your pending approval once you’ve finished moving your items in the cart until you hit the order button?
E-commerce websites’ carousel ads on Instagram & Facebook are based on your purchasing pattern to remind you if you’re still interested.
You must have got ‘n’ number of emails based on your activities on Google or any other app for that matter, once you log in or sign up? Our Facebook feed is also filled with ads that are based on our search behaviour. These examples are just to point out the fact that how big data is a part of our everyday lives.
Demographics play an important role too when it comes to location-based apps like Zomato or OYO in order to give you better recommendations. Many apps run entirely on customer behaviour data and your filters tell them a lot! Your ratings or reviews help brands improve or perform better in future.
How to use customer behaviour data?
Make use of your customer behaviour data to –
1. Personalize your customers’ experiences
Offer numerous filters for better search results and make it easy for them to explore your brand. By providing social media buttons or showing them personalised recommendations, you can improve the customer experience and render them utmost satisfaction.
35% of Amazon’s sales are generated through their recommendation engine.
2. Make them stick to your brand
By giving welcome offers to your audience like 50% off on first five orders, or telling them about rewards or other discounts via email marketing or social media marketing, you can increase the engagement level and acquire more customers.
3. Tell them you are with them or you miss them
Retain your customers by constantly reminding them that you exist through interesting campaigns or by organising meetups or by sending out weekly newsletters. Don’t forget that remarketing can help you grow or expand your business.
4. Know who you shouldn’t be targeting
The data helps you in figuring out your target audience. Promoting at the right time to the right people is very important in the field of digital marketing.
5. Keep your insights updated
Nothing is constant. People might shift, their behaviour might change. Hence, it is important to regularly update your data and keep in mind customer feedback/reviews to market out successfully in future.
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