How to Analyse the behaviour of Customer?

Customer behaviour Analysis and purchase is not a new concept. Before the advent of the Internet, to predict it, marketers would study a customer’s behaviour to determine what products they would be interested in buying. This was done through customer surveys, which were costly and time-consuming. With the power of data analytics though, some businesses are now able to predict consumer behaviour by analyzing past purchases, search history, or even social media profiles.

For example, if a person searches for animal-related items such as fish or birds, it may lead to the purchase of pet supplies. The amount of data that can be analyzed is limitless, and businesses are taking advantage of this opportunity to identify consumer behaviour and trends to create a more effective behavioural analysis marketing strategy.

The one-time buyer problem is one of the most widely known challenges for retail e-commerce brands. It is difficult to identify potential repeat customers from only one purchase instance. E-commerce companies often acquire new customers in large numbers through intelligent marketing strategies, but it’s imperative to determine which customers are likely to repeat purchases.

Consumer Behavioral Segmentation

Behavioural segmentation is an effective and efficient way to use your customer behaviour analytics platform to predict customer behaviour. It’s possible to identify consumer segments of interest, such as frequent purchasers or heavy shoppers, and tailor marketing messages to them. Segmentation can also be used to create custom offers tailored to customer interests. For example, if you know that a segment of customers is interested in travel, you can include special discounts and deals for those people.

3 Types Of Consumer Behavior

Purchase behaviour: what a consumer is willing to buy.

• Demand: the overall level of interest in a product, service, or brand
• Retention: how long a consumer continues to use a given brand
• Recall: how accurate consumers are when recalling their purchase experiences

Usage behaviour: how the product is used.

• Attrition: the percentage of consumers who leave a product or brand due to dissatisfaction, perceived lack of value, or other factors

Consumer loyalty: The extent to which consumers remain loyal to one brand over time.

• Post-purchase behaviour: how a consumer feels about the product when they buy it
• Pre-purchase behaviour: how a consumer decides which product to buy

How To Analyze Customer Behavior

One of the main techniques is the Behavior Analysis and Modeling (BAM) approach. This is a dynamic, data-driven modelling technique that combines the best of traditional customer segmentation and behavioural analysis to identify how customers behave as they move through the purchase decision process.

The BAM technique identifies the purchase cycle stage for each customer and the most profitable marketing approaches to apply to different stages in the purchase process. It also allows marketers to identify their customers’ behaviours at each stage of the purchase cycle. BAM is a hybrid technique that provides both benefits of traditional behavioural segmentation and the benefits of traditional CRM techniques.

The BAM approach uses four stages to identify behaviour patterns and use these patterns analysis to create marketing strategies: Beginning the process to try to develop a “pragmatic, respectful, and trusting working relationship with the client” using critical reflection. 

The first stage is most commonly overlooked in terms of its importance. The practitioner is motivated to recognize the client’s problem, not just the manifestations.

In the second stage, the practitioner identifies the behaviour patterns that are a result of the client’s problem. Here, the practitioner is not making a diagnosis of the client’s problem, but rather observing the client’s behaviour in response to their life situation. 

In the third stage, the practitioner identifies the relationship between the client’s problem and their behaviour. This is the most important and difficult step in BAM. It is important to note that this stage also does not make a diagnosis of the client’s problem, but rather brings out the relationship between the client’s problem and their behaviour. The practitioner is identifying the client’s problem and shows how the client’s behaviour creates, maintains, or worsens the problem. 

In the fourth stage, the practitioner provides suggestions for how to alter the client’s behaviour to bring about positive change.

Also, BAM is different from other CRM techniques in that it does not use a database for marketing to customers.