Strategy formulation by learning model of consumer behavior
Understanding consumer behavior should drive your marketing strategy. If you’re not keeping an eye on consumer behavior, you could be missing out on important marketing opportunities right in front of you. In short, sellers who understand consumer behavioral data and integrate it into their goals and strategies are more likely to gain an edge over their competitors.
The role of consumer behavior in marketing is overwhelming, but analyzing this data is critical. It helps business owners understand how to market their products in a way that puts customer needs first, ultimately increasing the likelihood of the greatest sales opportunity.
Types of Consumer Behavior
When considering consumer behavior, it is important to remember the different types of consumer behavior. Knowing the production behavior is also important. Every person is unique and has millions of different reasons to buy. However, consumer behavior shows distinct patterns that identify four main types.
- Complexity: Complex consumer behavior is seen when people buy expensive things such as homes, cars, and exotic vacations. People don’t make such purchases often, and they don’t take them lightly. Large purchases are usually made after extensive research and analysis. The client explores different options, compares competitors and analyzes user reviews. At the same time, they discuss planned purchases extensively with family and friends, drawing on their experiences and seeking input. In complex consumer behavior, customers are heavily involved in product selection and purchase. There is also an important emotional component, as customers form certain attitudes towards their purchases and put a lot of thought into them. Big purchases often mean a change in status or lifestyle and require a large investment. Our clients understand the risks and importance of trading. For marketers, complex consumer behavior means having in-depth product knowledge to help customers make informed decisions.
- Reduced Dissonance: In this case, the customer is deeply involved in the purchasing process, but has a fairly limited selection of the products they are looking for. For example, there aren’t too many brands offering the item, or the differences between brands aren’t that great. The price and importance of a purchase may also be high, but customers don’t rely on exhaustive research, but on criteria, urgency, and Or decide based on your budget. This type of consumer behavior “cacophony” is caused by a lack of confidence when buying and the need to prove that the buyer made the right decision. Your marketing strategy in this case should focus on building a positive attitude towards your brand. This can be achieved through quality after-sales service and support, maintaining customer confidence that they have made the right choice.
- Habitual: Consumers are less enthusiastic when it comes to regular shopping. They buy everyday items such as groceries and household items and don’t give much thought to which brand to choose. When making such purchases, most people buy the brand they used to buy. If it’s not available for some reason, look for something similar. The purchasing process does not involve in-depth research and customers typically do not exhibit high levels of brand loyalty. Habitual purchases may be influenced by advertising. When customers need to make a quick purchase decision because they don’t have a favorite brand, they’re more likely to consider a product they’ve seen on TV or on billboards. For this reason, visual advertising is more effective as people are more likely to recognize the item after seeing it.
- Seek Diversity: In this type of consumer behavior, the buyer is rarely involved and does not research the product before making a decision. Instead of buying the usual brands, they try something new. This behavior usually occurs when buying groceries and household items. It’s not too expensive, so you won’t regret it if you make a mistake. Diverse purchases don’t come from bad experiences with the usual brands. Rather, it is a desire to try different products, often on a whim. For brands, such behavior requires different marketing strategies. For example, offer discounts and special deals to get customers to try your products, run visual advertising campaigns to increase brand awareness, and offer free samples.
How to conduct customer behavior analysis
- Segment your audience: The first step in customer behavior analysis is target group segmentation. Important segmentation models are demographic segmentation (age, gender, etc.), psychographic segmentation (personality, values, etc.), geographic segmentation (country, city, etc.), or behaviors such as frequent behaviors and product use. , preferred media channels, and so on. and online shopping – a habit.
You should also identify the customer characteristics that are most valuable to your business. One way to do this is to use RFM analytics to show when customers have recently shopped with you and how often they shop with you.
- Identify key benefits for each group: Every customer personality has its own reasons for choosing your business, and identifying them is essential. Beyond your product or service, consider external factors that influence your customers’ purchasing decisions. For example, was it convenient shopping? Or did you choose your brand consciously? How urgent is the purchase and how much do you want to spend? Thinking about the context of your customer’s needs is a great way to identify areas where you can improve the customer experience.
- Assign quantitative data:Some resources may be easier to access than others. To get a complete picture of both micro and macro consumer trends, it is important to draw on information from both internal and external sources. From within, businesses can pull stats like blog subscription data, social media insights, and product usage reports. Secondary outlets may provide consumer ratings, competitive analysis, etc. Third-party data is not specific to any particular company, but provides general industry-wide statistics. Combined, the three provide a wide range of information that can be used to analyze customer behavior.
- Compare quantitative and qualitative data: After collecting the data, the next step is to compare the qualitative and quantitative data. To do this, examine the Customer Journey Map using the dataset as a reference. See which personas purchased which products, when and where. Are you back for another visit? By comparing two sets of customer experience data, you can gain a deeper understanding of the customer journey.Comparing data can help identify recurring trends.Look for common impediments that may appear at different stages of the life cycle, and be aware of unique behaviors specific to your customer type. Get back to your valuable customers and acknowledge whatever stands out in their buying behavior.
- Apply analytics to campaigns: As previously mentioned, insights can be used to optimize content delivery. Choose the best delivery channel for each persona and harness its power to personalize your customer’s experience. Nurture your customer throughout her journey by responding to obstacles in a timely manner. Insights gained from conducting customer behavior analysis should give you a good idea of where to update your marketing campaigns. Use analytics to determine what your customers think of these changes before you roll out new initiatives. Customers are creatures of habit, and some resist change, even when it gets better. It is important to avoid considering different ways to change these customers and remember to be open to feedback.
Analyze the results: After spending some time testing, you’ll probably want to know if your changes worked. Determine the impact of updated campaigns using metrics like conversion rate, acquisition cost, and customer lifetime value. New technologies, politics, and events are constantly influencing customer needs, so it’s important to continually analyze results. Revise your analysis frequently to ensure you catch new trends in your customer’s journey.
