The customer is always right. It’s the business motto that’s been around since the early 1900s and still proves true today.
The only difference now is our customer base is wide-ranging, which makes it tough to keep up with demand.
Simply relying on customer profiles is no longer enough. Just because you sell to doctors doesn’t mean they’re all visiting your site for the same reason.
You have to personalize your marketing and customer service, so it accommodates each customer segment’s unique needs.
But how do you do this efficiently? The answer is customer behavior analysis.
Let’s take a closer look.
What Is Customer Behavior Analysis?
Customer behavioral analysis is when you review how customers interact with your brand. After segmenting your customers into buyer personas, you use qualitative and quantitative data to provide insight into customer behavior including their needs and wants.
For example, you may notice a specific segment funnel into your website from a particular channel (and it’s high-converting). With this data, you can focus more attention on promoting through this channel.
Or maybe a segment is bouncing away from your landing page, which means you need to see if the messaging or offer needs to change.
In both ways, conducting a customer behavior analysis provides you insights into what influence your audience at every touchpoint along their customer journey.
Why is Customer Behavior Analysis so Important?
There’s a lot you can learn about your audience by looking at customer behavior data. This can directly help you with things like:
- Predicting Customer Value
- Personalizing Customer Experience
- Improving Customer Retention
Rather than focusing just on their profession, salary, and demographic, you can understand what it is they’re looking for and when, so you can better accommodate and convert them.
Companies like Amazon and Netflix understand this and developed their site around customer personalization. Their sites include advanced recommendations based on an algorithm that analyzes customer behavioral data. That’s why you might have noticed that show artworks differ from one Netflix account to another – and why you might have something radically different from your friends, or family.
This helps guide the user to the next show to binge on or the next product to purchase based on its interests. The better you analyze customers, the easier it’ll become to develop marketing campaigns to attract and convert them.
But how does this translate to ROI?
Amazon and Netflix have been using customer behavior analysis for years to boost ROI. Amazon’s personalized recommendations generated an additional 35% in sales. And Netflix used it to save around $1 billion annually in reduced churn.
Let’s look at several ways you can analyze consumer behavior and conversion optimization tips to boost your ROI.
1. Learn from your user reviews
Adding a review section to your product page does two things:
- It helps to nudge newcomers to make a purchase (if you have high ratings)
- And it gives you insights into what customers think about your products and brand
Keeping an eye on your customer reviews will enable you to identify issues quickly. For instance, if you see multiple people complaining about slow shipping, then you know it’s time to do something about it.
You can also learn positive things, like customer pain points. Some will leave stories of why they purchased the product and how it helped them. Testimonials like these can guide your marketers when it comes time to develop promotional content.
For example, covering those pain points in upcoming blog posts or ad copy to drive more conversions. The testimonials can also be used as social proof directly in the content (think email campaigns and ads).
Joy Organics does a great job of putting its customer reviews front and center. It’s placed right beneath the product to fortify why users should place the order.
From their reviews, you can see the brand is praised for being customer-centric.
The brand also includes reviews from 3rd-party sites like Google:
From these reviews, you learn that pricing is a pain point that drives people to buy. And they give praise for the product being high-quality.
2. Help Your Customers With A Common Problem
There’s a reason visitors are coming to your site. But it’s up to you to figure out why.
Some may not be ready to make a purchase. From customer behavior analytics, you can learn pain points and questions your audience has.
And with this information, you can develop relevant and helpful content.
This is why you’ll find how-to and tutorial content excelling at the top of the funnel.
SimpleMoneyLyfe chose to create a page explaining what credit repair is, and the best companies to work with. This caters to folks who may be unaware of how credit repair works and how to go about choosing a credit repair company to fix your credit score.
But rather than leaving readers to navigate a long-winding page, they created a table of contents to allow users to click on the area they want to learn more about.
And while informational content is helpful, there are other ways to prove useful to your audience — such as with an interactive dropdown to show full content or a quick visual overview.
In this case, SimpleMoneyLyfe incorporated dropdown menus, star reviews, and a simple overview of each company. With this, users can quickly find information that best suits their needs.
It’s a genius method — the page educates the user on the credit repair and then gives them a time-saving list of credit repair companies. By learning which company is the best fit, they can proceed to the company’s homepage by clicking on the “Learn More” button.
3. Optimize Landing Pages For a Better User Experience
The purpose of a landing page is to guide a unique group of visitors to complete a call to action. So it’s critical to optimize your landing pages for the user experience.
It needs to include several elements to do this:
- Relevance to the visitors’ needs
- Eye-catching appeal
- Simple navigation
- Clear call to action
With customer behavioral data, you can learn how visitors are engaging with your landing pages. Are they bouncing away right away or after several minutes?
If right away, then it could show you’re attracting the wrong audience. In this case, you may need to change your marketing/advertising message.
Then if they’re staying a while and then leaving, then it could be your pricing, lack of trustworthiness, confusing layout, or other factors.
So the idea is to think ahead and consider what would give your landing pages a great UX design.
Take a look at Preply’s landing page for Spanish tutors:
Scanning the page from top to bottom, you’ll find:
- A section to personalize your list (hourly rate, country of origin, and hours of availability)
- A way to sort the list of tutors, in this case, it’s by relevance (or you can choose popularity, highest/lowest price, reviews, and ratings)
- Photos of the tutors (builds trust), how many students and lessons they offer (demonstrate expertise and popularity)
- Star ratings and rates clearly displayed for each tutor
- Hover feature that allows you to see the tutor’s current schedule and a video clip introduction
- A familiar favoriting system (heart on the photo) to build a list of tutors to sort through later
- A noticeable blue CTA button that clearly shows what happens next “Book trial lesson” (a great way to get people to try before they commit)
These elements make this page easy to navigate and understand. So those looking to take Spanish lessons are more likely to convert by booking a trial lesson.
4. Drive Conversions With Repurposed Content (And Lead Magnets)
Let’s say you start a business blog. It gets a decent amount of traffic, but you’re not getting as many newsletter subscriptions as you’d like.
Customer behavior analytics shows they’re reading more than one of your blog posts per visit. This means your content is relevant and helpful. You may even see certain posts getting a ton of social shares.
With this information, you can put together a list of high-traffic topics and develop e-books out of them. But rather than writing from scratch, you repurpose the content on your blog for the e-book.
This saves time for you, as well as your readers. They’ll have a go-to resource with all the information they need on a topic in one place.
However, to access this free e-book download, visitors must first give up their first name and email address. But that’s a no-brainer for customers who find your content valuable and relevant.
So your email list begins to grow, all with the help of a lead magnet you created with repurposed blog content.
Now, what you want to avoid doing is creating an all-encompassing e-book. Instead, you want your lead magnet to be very specific. In fact, the more specific your lead magnet, the better.
Instead of talking about how to create a marketing strategy, you can hone in on key areas. For example, how to write CTAs that convert or how to design a landing page.
LFA Capsules has a great example of this. The company offers an e-book as a lead magnet on its home page. It’s relevant to their audience and very specific, “How to Make Your Own Capsules.”
5. Optimize Your Marketing Efforts to Increase ROI
If you’re serious about increasing your ROI, then you need to make your marketing efforts as efficient as possible.
This is a lot easier to do when you have the right tools to simplify the process. For instance, did you know 88% of marketers say that reducing time spent on preparing reports and analysis enabled them to focus more on strategy and customers?
You can do the same by adopting a simple workflow software that automates tedious tasks (such as report building). This way, your team can focus on revenue-generating tasks.
Then to ensure your team is being productive, you can use a time-tracking tool that generates reports to monitor your project’s progress. You can use it to identify time-wasting and resource-eating bottlenecks hurting your ROI.
Ready to benefit from customer behavior analysis?
Implementing a marketing strategy that doesn’t yield a return on investment is a waste of time and money. By using customer behavioral analytics, you’re able to achieve two things:
- Improving the customer experience with your brand
- And increasing conversions (along with your ROI)
But it all starts with implementing the right optimizations. Hopefully, this guide helped you amplify your marketing to reach your ROI goals.
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About the author
Ezekiel has a special affinity with numbers and patterns, on top of being a natural at PR. This gives him the edge when it comes to SEO analytics and advertising strategy.