Engineering Better Marketing Through the Use of Behavioral Analytics
As the saying goes, “know your enemy”.
While consumers are not actual enemies, it pays to know all of the patterns of human behavior regarding target marketing and products so as to have a better picture of how to market products, ideas, and services to the public. Study human behavior for a short while, and it’s easy to see trends of how people shop for various products and services. Some prefer to shop in brick-and-mortar stores buying tangible products that are readily available, while others enjoy shopping online. Some people respond immediately to an ad online or on television, while others wait it out a bit. Lots of people love mobile coupons, as it helps them save money on products and services they want and/or need.
This is where behavioral analytics comes into play. Behavioral analytics is a combination of human behavioral psychology, observation, and marketing. Human behavioral patterns provide the what, where, when, why, and how of their responses to products and services marketed to them and turns it into raw data. Behavioral analytics takes all of the raw data found in researching these patterns and trends in human behavior, and turns it into digestible information for planning new tactics in marketing. Raw data is taken from every perspective possible so as to produce a wide scope of information in order to strategize the next move in an industry. The examples listed above are a result of behavioral analytics; from here, it is easy to point out a few things that consumers like about a product or service, and what they like about how this product or service is presented to them. Other examples include factors such as how well people respond to a product’s design and packaging, consumer response to sales and clearance items, whether or not the product does what it needs to, need vs. want, and what is used in order to market a product or service online and on television.
Because there are millions of reasons as to why consumers shop where they shop when they shop and buy what they buy, behavioral analytics is understandably crucial to sorting through all of the raw incoming data and transforming it into something business entities will understand. This will then inform decision-making about the next big strategy for a stronger profit margin and greater consumer loyalty, not to mention better product design. In a way, it’s also listening to consumers’ wants and needs out of a product or service. If a product or service is receiving bad reviews due to faulty design, or a horrible marketing ploy, then this data informs businesses of changes that need to be made in order to have more positive results.
Raw data in behavioral analytics can come from just about anywhere. On Amazon and other such sites, people leave reviews of products and service so that others are able to read and make an informed decision. This counts as a form of raw data in behavioral analytics. YouTubers (people who make a living creating videos on the site) also count as raw data, as they often make videos testing out various products to see if and how it works, and then comment on the results. This also works in the marketing of ideas, as good ideas often get a positive response from video makers and viewers alike, while bad ideas get a strong response toward the negative, as well as a lot of general attention from other sources online. Other forms of raw data are surveys that consumers take online about a wide variety of products or services, usually with a reward of money or gifts at the end of the survey. The most tried and true method of raw data is still word of mouth, as it spreads around the world at light speed thanks to the Internet.
Suffice it to say, utilizing behavioral analytics in marketing is quite possibly the smartest decision a for-profit company could make in order to make sure they keep on growing. Fortune 500 companies such as Disney, Apple, Microsoft, Walmart, Aflac, Nike, and Lincoln rely on this data in order to keep their empires thriving. This is because with all of the raw data received and converted into usable data, companies like these and others are able to truly market to their audience in a more personalized fashion. For example, take a look at the ads in the sidebar on Facebook. Recognize anything? Perhaps a site you had just shopped at sporting a well-designed leather jacket or a Groupon for a hot yoga class? That is one of many results in behavioral analytics. Ads are personalized and targeted to people who may have only researched a site minutes ago, and yet the ad for the same site is visible later, beckoning people to come back and shop more. Other examples include the bottom of the Amazon site showcasing items others have bought in combination with a product that was just viewed, or similar themed items at the same prices. The point in all of this is personalization; this is to make the viewer want to shop more of what they want without having to do a whole lot of hunting online.
Behavioral analytics is a genius move on the part of businesses everywhere! It is a brilliant combination of knowing how people think and react and how to market to them, which is the essence of marketing, but fine-tuned and personalized for maximum results. Businesses would be at a loss without it, and would likely flounder. It is a smart means of knowing what makes a company successful and how to keep it building for the future.