E-commerce customer behaviour means how your customers think and act while shopping. Today's customers know how different businesses try to capture their attention with better features and offers. Therefore, their expectations are high, and they choose what aligns with their interests.
That is why you need to understand your customers' behaviour better. By understanding what they want or wish for, you can present them with the same, effectively acquiring and retaining customers.
So, let us explore customer behaviour in detail, its importance, and how to analyse it. Also, let us discuss how top businesses relate customer behaviour and marketing.
Importance of Understanding Customer Behaviour
Customer behaviour analysis is a detailed investigation of how customers engage with an e-commerce platform. In other words, it refers to how an e-commerce business examines every step of a customer's journey to gather valuable insights.
Here is why customer behaviour analysis is essential.
- • Identifying high-value customers : A better understanding of your customers will help you identify customers who bring in maximum value. At the same time, it will help you allocate resources to engage them better and maximise sales.
- • Enhancing customer retention : Customer retention is a serious concern for e-commerce platforms. It can only be increased through a proper understanding of customer behaviour.
This allows you to offer customer experiences that engage your customers and encourage them to return for more purchases. As a result, you can maximise customer satisfaction and retain them. - • Personalising customer experience : When you know customers' preferences, you can personalise their experience. For instance, you can give them offers and incentives that encourage them to complete purchases.
Customer Behaviour in Marketing
Customer behaviour is an essential marketing tool. It helps businesses gather insights into what customers are looking for and how they make purchasing decisions. Let's explore how companies can collect and use customer behaviour in their marketing efforts.
Collecting Customer Behaviour Data
All businesses must collect user data from different sources to better understand customer preferences. Let's explore the most efficient methods for collecting customer data.
- • Surveys : Surveys are one of the typical methods most businesses use to seek customer information. Because surveys are conducted online, they are simple and relatively cheaper. They help companies understand customer preferences and levels of satisfaction.
- • Focus Groups : A focus group is a small group of customers a business gathers to discuss a particular product or service. This method yields qualitative data and customer perception, enabling companies to explore customer attitudes and preferences in depth.
- • Observations : Observations refer to the observation of how customers relate to products in real-life settings. This research method provides authentic information about customer behaviour and personal preferences.
How to Use Customer Behaviour in Marketing?
Using customer behaviour helps you devise marketing strategies that speak directly to them. Let us learn how to use customer behaviour to elevate your marketing efforts.
Identify Your Target Customers
First, you need to know who your customers are. Now, consider their age, interests, and what they like to buy to enable you to focus on the right people. You wouldn't want to waste time on people who do not care about your products.
Knowing your target audience enables you to ensure that the messages you send go straight to the right customers. You're talking directly to the right people who will likely buy from you.
Enhance Products and Services
You now know your target audience. So, the next step is to ensure that your products meet their needs. Pay attention to what they are saying about you and improve upon it. It is highly possible they like something you haven't yet thought of.
Or maybe you're doing something wrong and don't know it yet. Improving your products and services will make it look like you care about your customers and they get the most out of their experience.
Make Marketing Messages Personalised
Personalising your messages is an excellent way of making customers feel special. Use the information gathered about your target audience to your advantage in personalising the messages. For instance, you can send them a special birthday offer.
You can make recommendations based on customers' purchase history. All these make your customers feel important and cared for. This will then translate to better relationships with customers and repeat business.
Here are the benefits of e-commerce personalisation in marketing.
Benefits of Personalisation
According to U.S. Marketers
Improve Customer Experience
Do you know that an exceptional customer experience can set you apart from the competitors?
Check how easy or difficult it is for customers to find what they are looking for on your website. Or how quickly they can get help if they have a question.
Improving the customer experience shows that you care about their needs. Happy customers will most likely come back and tell their friends about you. This, of course, will lead to increased brand loyalty and sales.
Customer Behaviour Analysis in E-commerce Marketing
Customer behaviour is analysed across every customer touch point. Therefore, it is essential for e-commerce businesses to be familiar with all stages of a customer journey. Here are the five steps to analyse customer behaviour.
1. Bring Customer Data Together
Businesses can undoubtedly get a complete view of their customers only if they have all the data in one place. So, the first step to analysing customer data is combining it. This approach will help you understand customer behaviour.
It is also an essential step towards personalising and improving the customer experience in your eCommerce platform.
If your customer data is stored in different data silos, bring them together with an excellent customer data platform like TechMonk. It is specially designed to collect and consolidate customer data from multiple sources with just a few clicks. It is your ultimate choice for a customer data platform, as it also brings other essential e-commerce tools under the same roof.
Unify Customer DAta From Different Sources To Drive Profitable Business Outcomes With Techmonk.
2. Customer Segmentation
Now that we have complete visibility of each eCommerce customer, customer segmentation becomes seamless. Through this process, you identify the different groups of customers who visit your website or purchase your product. In other words, you better understand what each group of customers does when they visit your product.
In addition, customer segmentation looks at demographics, professional backgrounds, and preferences. Thus, you can understand your customers based on location, preferences, age, occupation, orders placed, and more. Customer segmentation shows your customers' behaviour and the percentage of customers who exhibit a specific behaviour.
Today, customer segmentation is granular and precise, thanks to tools like TechMonk. They use AI for accurate segmentation and let you segment your customers as follows.
- Recency, frequency, and monetary value (RFM) segmentation
- Events based segmentation
- Cohorts segmentation
3. Identify Selling Points of Customer Segments
After segmenting the customers, e-commerce businesses must examine why they purchase a product. In other words, you must determine what drives their purchasing decision.
Data about customers' purchasing decisions can be collected through surveys and user interviews. Here are some things you should know about your customers.
- Was their purchase spontaneous?
- Did they compare the product pricing with competitors?
- What did they feel about the pricing of the product?
- Are they satisfied with the customer experience?
A platform like TechMonk lets you create and send surveys to individual customer segments.
4. Look For Trends and Valuable Insights
After gathering qualitative data from your customers, analyse trends to gain valuable insights. It is also essential to compare the data with your customer journey map. This will help you identify areas that need improvement.
Here are some customer trends to look into.
- High-value customers
- Customers who make repeat purchases
- Marketing channels that align with the segments.
5. Optimise Your Strategy
Optimising the customer engagement strategy involves using valuable insights from customer behaviour analysis to create a better customer experience. By optimising your strategy, you can only retain your customers and build customer loyalty.
If you discover a customer segment abandoned the shopping cart, you can trigger re-engagement messages across different communication channels. To ensure that the customers complete their purchase, offer them a discount on the product in their abandoned shopping cart.
If you discover another customer segment of your high-value customers, you can reach out to them with personalised offers. This keeps them engaged and encourages them to make repeat purchases.
You might think optimising the strategy is a step out of customer behaviour analysis. This is because, in this stage, we use the insights obtained from customer analysis to improve their experience. However, customer analysis is a continuous process. So, you need to constantly gather customer data, segment them, and analyse trends.
Takeaway
With customers' expectations constantly changing, businesses must keep track of customer behaviour. They ensure that their products and marketing messages closely align with customers' interests. As a result, they can convert and retain customers without any hassle.
Are you looking for a single solution that lets you keep up with the changing customer behaviour? Then, team up with TechMonk.
- • Customer Data Platform : Integrate your customer data from all channels into one place to gain a deep understanding of customer behaviour.
- • Omnichannel Communication : Reach your customers not through any communication channel but the one they prefer the most.
- • Customer Journey Orchestration : Analyse your customer journey closely and predict their following actions, facilitating conversion.
TechMonk lets you understand your customer' behaviour better and personalise their experiences by meeting all their expectations. Is not that what every e-commerce business wishes to offer its customers? Talk to us to know how we can help you meet your customer's expectations.
Gain complete visibility into your customers and personalise their experiences with TechMonk.
FAQs
What is meant by customer behaviour?
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