What Is Consumer Behaviour Analysis?

Gaining a clearer understanding of what and how people buy is fundamental to every successful business. 

Consumer behaviour is ‘the study of the elements that influence people’s purchasing decisions, including environmental, psychological, and societal factors’.

So, what is consumer behaviour analysis?

In short, consumer behaviour analysis aims to examine how customers interact with your business. It’s a qualitative and quantitive observation of every step of the customer journey, providing insight into what’s driving consumer behaviour.

Analysing customers in this way allows eCommerce businesses to understand their customers better, enabling them to tailor the customer experience with the information they gain.

From customer preferences to pain points, consumer behaviour analysis provides rich data that allows businesses to prioritise the consumer.

It enables businesses to drive sales and meet customers’ expectations, all whilst growing their customer base. 

The more data you can gather, the clearer picture you will have of your consumer and the better you can target them.

Why Is Consumer Behaviour Analysis Important?

Consumer behaviour analysis is important for many reasons. These reasons include, but are not limited to:

1. It allows you to improve your content
2. It improves customer retention
3. It allows you to focus on personalisation 
4. It enables you to understand the competition 
5. It allows you to differentiate customers

1. It Allows You To Improve Your Content

Consumer behaviour analysis is important as it allows you to improve and tailor your content.

Analysing this data allows you to optimise your campaigns consistently, enabling you to hone in on the most valuable customers.

Although your content should always aim to be creative, it must be relevant and backed by data to resonate with your audience.

Aura Ads is a data-driven creative agency that prides itself on producing authentic ad content that feels native to the platform.

We recognise that creative has the power to drive growth, but only when it answers to data.

If you’re looking to invest in scroll-stopping ads and data-driven content, schedule a call with our team today.

2. It Improves Customer Retention

Consumer behaviour analysis is important in that it improves customer retention.

Analysing customer behaviour will allow you to establish what your audience likes about your business and any pain points they might be experiencing, helping to inform the best solutions for your target audience.

The importance of prioritising your customer is emphasised by the fact that ‘93% of customers are likely to make repeat purchases with companies that offer excellent customer service’.

By leveraging the data you gather through consumer behaviour analysis to prioritise the customer experience, you will encourage customer loyalty and retention.

3. It Allows You To Focus On Personalisation 

Personalisation has never been more important as customer expectations are shifting.

A study found that ‘73% of customers expect better personalization as technology advances’, emphasising how important it is to consumers.

The more personalised your content is to your target audience, the more engaging it will be and the stronger your connection with them becomes.

By gaining a better view of your customers through customer behaviour analysis, you can increase customer satisfaction and improve conversion rates.

To learn how to turn clicks into conversions, read our blog here.

4. It Enables You To Understand The Competition 

Customer behaviour analysis is important in that it allows you to understand your competitors.

For instance, the data you collect might highlight that your customers sometimes purchase from your competitors. 

From here, you can determine what your competitors are offering that you’re not which makes your customers buy from them.

Alternatively, it might make you rethink your current marketing strategies.

By carrying out consumer behaviour analysis, you can better your offerings and keep up with the competition. 

5. It Allows You To Differentiate Customers

Differentiating between customers is a technique that allows you to cater to the needs of your target audience.

While you will have a specific demographic in mind, there will likely still be differences between consumers.

Using consumer behaviour analysis, you can segment your customers into specific groups based on their behaviours.

This allows businesses to differentiate their campaigns to specifically target these groups and maximise engagement. 

Consumer Behaviour Analysis Tools 

There are a variety of consumer behaviour analysis tools that can provide excellent results. They include, but are not limited to:

Google Analytics

Google Analytics is a free tool that can embolden businesses to make decisions backed by data.

From conversion tracking to help you measure the effectiveness of a campaign to user demographics, Google Analytics provides a wealth of insights.

Meta Audience Insights 

Meta’s Audience Insights provides demographic data, allowing you to gain a more comprehensive understanding of people engaging with your business on Facebook and Instagram.

You can use consumer behaviour analysis to access data on purchase behaviour, retail spending, and more to predict your audience’s future actions. 

Google Trends 

Google Trends is a customer behaviour analysis tool that offers insights on search criteria across Google Search, YouTube, and Google News.

It offers trend analysis and geographic distribution to see where your search terms are most popular.

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We hope this article has provided a more comprehensive view of consumer behaviour analysis. 

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We are Aura Ads, a unique performance creative agency designed for D2C eCommerce brands. We help clients sell more online and grow at scale with our bespoke video and static creative delivered on a monthly basis.

For more top tips from our experts, check out our social media marketing blog. 

Written by Jemima, for Aura Ads.