You know brands spend millions every year on marketing to attract, engage and retain the perfect customer, don’t you? In the process, they create highly targeted interactive ad campaigns and generate content and digital marketing campaigns that speak individually to the consumer.
So what is their secret? Well, these companies develop these campaigns based on data collected throughout the customer’s lifecycle.
They also use this valuable intelligence to create personalized, targeted shopping experiences. The good news is that your company can do the exact same thing.
Here’s our guide to different ways to collect and use consumer behavior data (with examples from big brands). Enjoy!
What is behavioral marketing data?
Behavioral data is what drives Digital Marketing activities. They provide great information about a customer’s buying habits . They are collected every time someone places an order online or visits a restaurant, for example.
Let’s think about convenience stores for a moment:
- owners can see how customers buy, what they buy, and how often they enter the store;
- they know their customers by name and probably know who their children are and when their birthdays are;
- these business owners know when to buy the most popular items because they know their customers’ buying habits.
Now imagine gathering these types of information, but on a much larger scale. It’s something very difficult.
That’s why e-commerces and retail chain owners need better ways to track customer behavior. That’s where data collection technologies come in to capture how consumers are shopping and why they make their buying decisions.
Why should you collect marketing behavioral data?
First, to learn how your customers behave, you need to create a 360-degree view of the customer journey . You start by understanding the factors that influence buying behavior.
We all know that traditional media and social media bombard consumers with digital marketing messages, branding and content marketing to influence their decisions.
However, customers often make choices based on referrals or suggestions from their group of friends, family or simply to suit their likes and dislikes.
This brings us to the main point. Collecting data about the individual consumer, how they make decisions, and why they buy your products will help marketers create a more satisfying shopping experience. Trust me: a lot of this has to do with personalization.
Here’s some data: 75% of Netflix viewer activity is driven by recommendations and 35% of Amazon’s revenue is generated thanks to the recommendation system. Impressive, isn’t it?
Consumers are obsessed with technology and demand a constantly personalized experience across all communication channels. In this context, marketers must collect and use behavioral marketing data to create better experiences , optimizing all three stages of the customer lifecycle:
- acquisition, when consumers decide which products to buy and where to acquire them;
- engagement, which determines which channels and promotions will attract customers;
- retention, the process of pleasing customers and converting them into advocates for your brand.
How to collect behavioral marketing data?
It’s simple. A CRM (customer relationship management) system collects and stores information about your customers.
This data includes demographic information such as employment, age and personal interests. CRM also captures purchasing activities, such as what products were purchased and how much they paid.
Many brands monitor customer intent activities, which helps predict what products they are considering buying in the future. Viewing certain websites or reading blogs to conduct research are activities of intent.
Polls and other types of marketing research tools also collect valuable customer opinions. Many brands use standardized searches. A popular model is known as the Net Promoter Score (NPS).
Customer experience teams send periodic surveys via email, asking consumers if they would recommend the brand to a friend. There is a scale from 1 to 10, indicating which customers are promoters (9 to 10), passive (7 to 8) or detractors (1 to 6).
In addition, forums, social media and focus groups are popular ways to gather consumer opinions about the brand. Companies can not only find out who their loyal customers are, but also direct digital marketing campaigns to reward their promoters.
How to analyze behavioral marketing data?
Okay, now you have amazing data on your hands. Consumer activity and behavior is being measured on your website and e-commerce platform, and you are using analytics tools such as Google Analytics .
Social channels such as Facebook and Twitter are providing their own valuable information through their analytics platforms. However, we need to face the truth. There are millions of transactions every minute, so it’s not easy to keep track of everything.
That’s why many brands rely on marketing behavioral data analysis software to organize and indicate purchasing trends for their products and competitors. This is a smart way to get information into a format that company board and marketers can quickly digest.
The software can process large volumes of data and generate real-time, interactive reports and dashboards . As a result, decisions can be made quickly, without worrying about information delays . This helps companies keep their campaigns up-to-date and relevant to their customers.
How can you use behavioral data to succeed in your marketing strategies?
The best advice we can give you is this: listen to what your data is screaming. Why are you screaming? Because we live in an era of conscientious consumers, where very little is tolerated by them. People are not afraid to take a stand and will easily turn against unethical deals.
Yes, using behavioral marketing data helps the company create better, more personalized shopping experiences . However, it also informs brands about behavioral trends in a rapidly changing world.
This encourages companies to be more transparent about their processes and rewards them for making that decision. In this way, behavioral marketing data can really guide improved and more aligned strategies to a new (and conscious) way of shopping.
How do companies benefit from behavioral marketing data?
Here are some examples of big brands using data in the right way.
Apple is an excellent example of a company based on the analysis of consumer behavior. In the early days of marketing, she understood the need to build a loyal customer base , even if it meant giving up market share.
As a result, Apple founder Steve Jobs did not share his operating system with other companies, as Microsoft did with its MS-DOS system. At first, many industry critics questioned this philosophy.
Still, as Apple expanded into the digital age, it took advantage of its loyal customers to dominate product categories from music downloads (iTunes), smartphones (iPhones) and tablets (iPad). By leveraging data from music downloads and app purchases, Apple succeeds in creating personalized customer experiences.