A customer behavior analysis is a detailed investigation of how customers engage with your company. Using qualitative and quantitative methods, it looks at every step in the customer journey and provides insight into what’s driving consumer behavior. These are some effective steps to measure and analyze customer behavior
1. Segment your audience.
A customer behavior analysis begins by segmenting your audience. Several methods are available for segmenting customers. Demographic segmentation is based on age, gender, or other characteristics such as personality, values, or geographic location. You’ll also want to identify the characteristics of customers that are the most valuable to your business.
2. Identify the key benefits that appeal to each customer persona.
It is important to identify the key benefit for each customer persona. Look beyond the product or service and consider external factors influencing their buying decision. For example, was it a purchase of convenience? Or did they make a conscious decision to seek out your brand? How urgent was the purchase, and how much do they want to spend? Thinking about the context of customers’ needs is a great way to determine areas to improve the customer experience.
3. Allocate quantitative data.
Quantitative data can be sourced from various internal and external sources. Internal sources include the company’s own blog subscription data, social media insights, and product usage reports. External sources such as consumer reviews and competitor analytics can also be used. Third-party data is generally available for an entire industry and helps provide a broad scope of information when analyzing customer behaviors.
4. Compare your qualitative data against your quantitative data
The next step is to compare the qualitative data (from customer journey maps and customer interviews) against the quantitative data collected through surveys and other research. Look at which persona bought what product, when they bought it, and where. Did they return for another visit? By comparing the two sets of data against the customer experience, you can develop a detailed understanding of your customer’s journey. Comparing data should help you identify recurring trends. Look for common roadblocks that seem to pop up at different lifecycle stages, and note any unique behaviors specific to a customer type. Circle back to your high-value customers, and acknowledge anything that stands out with their buying behaviors.
5. Apply your findings to a campaign.
As discussed earlier, you can use your findings to optimize your content delivery. Pick the best delivery channel for each persona, and take advantage of opportunities where you can personalize the customer experience. Nurture customers throughout the entire customer journey by responding to roadblocks on time. You’ll want to consider how different segments will react to any changes you’ve introduced into your marketing plan. Customers are habitual creatures, and some will push back on change even if it’s for the better. These customers tend to be more loyal to your brand, so it’s imperative that you don’t lose them as a result. Consider different ways to introduce change to these customers, and remember to be receptive to their feedback.”
6. Analyze the results.
After you have given your campaign some time to run, you will probably want to know if your changes have worked. Consider using metrics like conversion rate, acquisition cost, and customer lifetime value to determine the effect of your updated campaigns. It’s important to continually analyze your results as new technology, politics, and events constantly influence customer needs. Checking up on the results of your analysis frequently ensures that you capture new trends in the customer journey while they are happening.
