Why is it so important to have a way to predict human behavior? This is the way we win customers, elections and our ongoing battle with disease. With politics, it can help explain the behavior of a group, an organization or a nation. In healthcare, it is extremely important because this predictive activity will generate answers to questions that have an impact on saving more lives. In the world of business and advertising, it is important to our economical health because using these predictions can drive commerce and help businesses, entrepreneurs and their communities grow and succeed. When organizations can operate more effectively and determine when to make the right offers; to the right customer; at the right time, this gives them a more nuanced, detailed and accurate picture of the marketplace so they can respond better to any changing trends. How then does behavioral analytics play a part in this?
It’s The Way Successful Companies Do Business
Amazon knows what books you like, Netflix knows which shows you watch and your credit card company lets you know when your spending patterns change. How do they do this? It’s all because they use customer behavior to analyze and transform it into valuable insights that improve customer service. When these companies use behavioral or customer analytics in their decision-making processes, this helps with improving sales, market optimization, inventory planning, fraud detection and other factors that give them a competitive edge. These companies are so successful in analyzing customer behavior because they have a strategic plan for using these analytics to clarify their customer profiling. When you can gain an accurate understanding of which products and customer types are most profitable, this is because you have a plan that aligns with using analytics across the entire organization.
In order to measure the results of their analytical efforts more effectively, these businesses use the insights they gain through behavioral analysis so they actually make a difference, and are more actionable approaches to better customer management. What this means is that they realize their customers are always trying to reach out and connect with the types of products and services they sell. So, they use these analytics for research, data insight, context and predictive modeling to better understand and connect with their regular customers and to find better ways to attract potential ones as well. However, they realize that you can only accomplish this when there is total commitment from all the stakeholders in your company to make more data-driven decisions. For that to happen, leaders must have a willingness to invest the time and energy it takes to make sure that all managers across the organization have the right tools that align with the company’s data-driven mission.
Where Exactly Will Behavioral Analytics Help?
The major strategic benefit lies in the ability to analyze data using predictive models so you can gain insights into future customer buying behavior. There is also:
Personalization is when you can give your customers what they need, when then need it. This requires you to recognize what your audience segments are and an insight into their unique desires and preferences. As you know, customers have varying tastes, shopping styles and communication preferences, but how do you find an accurate way of knowing what they are? Behavioral analytics will allow you to segment targeted customers into unique groups made up of people who share common characteristics. This will allow you speak to them specifically in your marketing campaigns and you can serve content and messaging that is highly relevant to them. You can then offer customer experiences that are more engaging and improve your product offerings. This segmentation helps you uncover the 4 Ps of better Customer understanding:
- Propensity – How likely will each segment buy my products?
- Potential – What is the lifetime value from each customer I win over?
- Profile – Who exactly are my customers; what do they like; and how can I reach out to them?
- Preferences – Which of my products will they prefer?
Real-Time Campaign Monitoring
There is a wide variety of behavioral data that you can collect during marketing campaigns so you can better understand a prospect’s interest and their ultimate buying intent. Retailers use these analytics everyday so they can closely track customer paths across the entire sales channel. When used effectively, this allows them to sell many products and makes their customers keep coming back to buy more. Knowing when, where, how frequently and which transaction types their customers use (including in brick-and-mortar stores) lets them analyze and use this data to figure out which products their marketing teams need to focus on. When you can view, analyze and begin to understand user behavior in this more updated way, you can increase your outbound campaign volume and refocus them in a way so you will achieve the best possible results.
This is crucial for gaining deeper insights into how your audience is engaging with your brand and can help when you need to make marketing decisions quicker. A tweet mentioning your product, a news story or even a weather report can change trends in customer demand. Taking advantage of these opportunities by automating your marketing with real-time behavioral analytics, will allow you to capture new and repeat business in a more effective way. This is because you can align your messaging with their behavior and adapt your marketing strategies based on what’s happening right there in that moment.
Companies Who Know the Benefit of Behavioral Analytics
Amazon & Netflix
Dave Hastings, who is Netflix’s director of product analytics, says that over the years, both Netflix and Amazon have accumulated extensive data by analyzing every moment of a customer’s journey. With this analysis, they’ve managed to build a digital strategy that lasts.
CVS uses predictive behavioral analytics to understand which patients are likely more nonadherent or who don’t realize the dangers of partial treatment. This not only helps patients but the companies who develop medical products as well.
Akhil Anumolu, Manager of e-Commerce Optimization & Personalization at Delta Airlines was voted as the Digital Analytics Association’s 2016 Rising Star. This is because of his experience with using data and analytics, coupled with optimization & personalization, to improve both customer experience and revenue.
Wal-Mart, Target & Macy’s
These retail giants use behavioral analytics to delve deeper into their customer data to uncover insights and opportunities. By focusing on areas such as consumers’ preferred payment methods, they can better measure their goods in both online and offline sales.
Companies who use behavioral analytics in their business practices can more effectively collect, manage and use this valuable data for strategic purposes. When you use this information for a competitive advantage, you will have the necessary tool that allows you to make the right offers; to the right customer segments; at the right time. Having more clarity in customer profiling and knowing who bought what, when and through which channels, is essential in gaining an accurate understanding of which products and customer types are most profitable to your business. This knowledge of why customers act as they do, is what you need in a battle plan that leads to more success.