You make decisions all through the day. Such decisions we take, day in and day out without thinking. They seem insignificant but are vital for any marketer. Digital marketers burn the midnight oil to decipher the process behind the consumers’ decisions. They then use this data to boost their business revenue.
What does consumer behavior mean?
Consumer behavior studies the consumers and their processes to consume and dispose of any service or product. These also include the mental, emotional and behavioral responses of the consumer.
Why is consumer behavior important?
Digital marketers spend a lot of time understanding consumer behavior. This is essential for any company to understand if its products are successful in the market and judge when and how to make a new product launch. Every individual has a different attitude and process of buying a product. A company should thus understand the consumers’ reaction towards the product. Else, there are high chances that the company would fail. Digital marketing courses teach these aspects in detail.
Digital marketers look at consumer behavior closely to stay adept with the change in technology, fashion, living style, and disposable income behavior, to name a few. Marketers should be aware of the changing factors to ensure that their marketing efforts are aligned accordingly.
Let us quickly list out the importance of tracking consumer behavior for digital marketers.
Helps to distinguish consumers
Consumer differentiation is a method to distinguish one consumer from the other consumers. This lets the marketers create a target group of consumers who possess similar behavior. Even after targeting a consumer demographic, you will still have consumers with several variations. Every consumer group is different, and they have different needs and wants. The marketer should create this differentiation for each consumer group, letting him design the marketing program targeting the relevant group. Consumer differentiation helps to tailor the strategies to meet the needs of the consumer groups. Understanding consumer behavior patterns allows the digital marketer to do a consumer differentiation that lets them expand the breadth and width of their services to serve a wide group of people and target them appropriately.
● Helps to retain consumers
Consumer behavior patterns let the marketers gauge the techniques that need to be implemented to create and retain their consumers. Customer behavior is not just about attracting new consumers but also about retaining existing consumers. If a customer likes your business or product and trusts you, he will be loyal to you and make repeated purchases. The digital marketers thus focus on the consumers’ behavioral patterns to convince them to buy the product again and again from the same place. Creating and retaining consumers is essential, and this can be done only when you understand and pay attention to the behavioral pattern of your consumers.
● Design a perfect marketing program
When the business understands the consumers’ behavioral patterns, then this lets them create a marketing campaign. Each campaign speaks specifically to the varied consumer groups. The campaigns are tailored based on consumer behavior. Studying consumer behavior lets the marketer understand what it is that motivates the consumer to make a purchase. The same motive can then be used to advertise and stir the customers’ decision to purchase.
● To Predict Market Trend
The consumer behavior pattern is the first thing that indicates a shift in the market trend. Recently, consumers are getting inclined towards healthy food and being environmentally friendly. This changing trend was seen by several brands that immediately took the necessary actions and included several healthy options in their menu.
Studying the consumer behavioral pattern lets the digital marketers save a lot of company resources that would have otherwise been allotted to products that would never move from the shelf. It lets a company decide its production strategy, which saves on warehousing and marketing costs.
Digital marketers dig a lot into understanding consumer behavior patterns to find answers to see if the consumer is moving towards its competitors. If a consumer is making purchases from a competitor, the company needs to understand the reasons for the same. Knowing these gaps can help any business to work on its shortcomings and offer a competitive advantage
● Innovate New Products
New ideas and products tend to fail if they are launched without understanding consumer behavior. The digital market understands this aspect and includes data-driven and analyzed products carefully before launching them in the market.
● Stay relevant in the present market
The world is changing, and if you do not stay up to date, it will soon lead to you shutting your shop. The rapid change in the buying patterns is directly linked to the changes in consumer behavior. Today, consumers have more opportunities and more choices, which lets them switch to companies that offer better services and products. Digital marketers analyze this closely and ensure that the business they serve stays up to date with the present trends.
● Improves Customer Service
Consumers need customer service, and implementing what every client needs lets you provide a better experience. Like, for example, imagine a computer business. A high school or college student will understand its features much better than an aged person buying his first computer. Understanding consumer behavior aims to understand the individual clients’ special needs and then target them accordingly.
Digital tracking, used by digital marketers to track consumers behavioral patterns
It is now possible to monitor everything. A business can track and trace anything, be it a cell phone record or an ATM transaction. The e-commerce business has a digital tracking tool that tracks the behavior of consumers. It comes with permission-based tools like IP mapping device IDs and cookies.
There is no one clear solution on how to use these tools. The information-gathering tool works in tandem to give the complete picture of the consumer’s path to reach the ultimate destination and make a purchase. It has a shortcut approach to get a comprehensive and real-time insight based on consumers.
For example, the website cookies track when the consumer is on the website and use this data to show any retargeted ad. Till the visitor gives his personal information, the personal data and the cookie will stay anonymous. You do not get to know the gender, age, and any other useful marketing data.
The device IDs are cookies that are anonymous unless the user gives his information. Geo-targeting is used for local offers, but these should combine data from other sources to target the customers accurately.
Gathering information is easy, but it isn’t easy to gather useful information and apply it for practical use. Digital marketers use the tools learned in the PG program in digital marketing to integrate what they have learned about consumer behavior to put it into action. Using this information, it is possible to implement effective processes and systems.
Consumer behavior helps a company to understand better what the needs of the target market are. It is an important tool to know the consumer. By looking into the psychology of consumers and the forces that drive customer behavior, companies can craft new products and marketing campaigns to increase their overall profitability.