How to Conduct a Customer Behavior Analysis?

Ashish Kasama|March 10, 2021|3 Minute read|
/ / How to Conduct a Customer Behavior Analysis?



Customer behavior analysis is critical to the long-term success of your business because it helps you understand what influences consumers’ buying decisions. In this post, we will learn how to conduct a customer behavior analysis.

  1. Segment your customers

    The first step to conduct a customer behavior analysis is to segment your customers. Segmenting your customers allows you to create marketing campaigns for each individual segment. Please refer to our article “ Customer Behavior Segmentation” on how to segment your customers for more details.

  2. Identify key buying reason for each segment

    Each customer segment will have their own reason for buying your products. It’s important to understand whether customers bought your products because they love your brand or because it was convenient, or for some other reason such as price. Maybe it was purchased because of an urgent need. If you understand your customers buying motivations then you can improve the customer shopping experience.

  3. Gather some numbers

    Just having qualitative data is not enough. You need quantitative data to truly validate your conclusions.  You can easily get blog subscription data, social media insights, and product usage reports from your company database. Consumer reviews and competitor analytics can be obtained from secondary sources. And industry wide trends are also available widely to give you a brief idea of consumer behavior.

  4. Compare all your data

    After you have gathered data, try to understand what the quantitative data is saying compared to qualitative data. Identify which customer segments bought what products, when and where they were purchased or repurchased. By doing this, you will have a detailed understanding of your customer behavior. Now you’re set up to easily pick out recurring trends or any roadblocks in the customer journey and offer better solutions.

  5. Apply your findings to marketing campaigns

    Use your findings to provide better content to your customers and remove various roadblocks in the customer journey. Use only the best delivery channel and marketing platform for each customer segment and use insights from your data to update the marketing campaigns for each customer segment.

  6. Analyze your results

    Lastly, it’s important to understand whether your changes to your marketing campaigns worked or not. To measure the effectiveness of campaigns use metrics such as conversion rate, acquisition cost, and customer lifetime value to determine the effect of your updated campaigns. Reanalyze your results again and again on a timely basis to make sure that they reflect the updated trends.

Read our other articles in our Series on Customer Behavior Analysis & Segmentation:

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