For businesses operating today, tracking consumer behavior has never been easier, or more crucial.
Digital platforms and cookie tracking make it easy for companies to collect consumer behavior data. Analyzing and reacting effectively to the data is key for companies that want to grow.
From optimizing online shopping experiences and creating targeted email marketing campaigns, to make the most of social media, consumer behavior is changing the way businesses operate and convert customers online.
The Influential Factors Of Consumer Behavior
In consumer behavior research, analysts often look at four influential factors that affect how consumers behave. In a 2008 study, these were classified as psychological, personal, social, and cultural behaviors.
Psychological behaviors are the consumer behaviors driven by a person’s motivations, beliefs, and attitudes. It also covers the behaviors that are driven by a persona perception of themselves and their education.
Personal consumer behaviors relate to the demographic profile of consumers. This often includes age, life-cycle stage, occupation, economic circumstances, and self-identity. Personal behaviors are often influenced by a person’s lifestyle and personality too.
When consumer behavior analysts discuss social behaviors, they are referring to the way a consumer acts based on their social influences. This includes looking at their peer groups, family, social status and roles, and the influence of social groups they subscribe to.
Cultural consumer behaviors are influenced by a wide range of factors. Commonly, cultural behaviors are considered in relation to a consumer’s social class, ethnic background, subculture, and geographic location.
The Importance Of Digital Tracking
As the world has deepened its dependency on digital technology, the importance of tracking consumers’ digital behavior has grown.
Some common places that digital tracking occurs are as follows:
For eCommerce retailers, digital tracking has become essential. Cookie data allows companies to accurately target their ads to people who are already interested in their business, saving them money on their traditional ad spend.
Additionally, retailers can track cart abandonments on-site and retarget customers who were already interested in products. This, in turn, can help companies generate more revenue and keep potential customers engaged for longer.
In recent years, email marketing has become one of the key ways for businesses to track their consumer’s behavior.
Email marketing expert, Amy Birch, of Wired Plus, an email marketing automation agency says: “Using URL tracking, you can track the visitor’s actions on your site and then follow up with a tailored email. These targeted emails could be based on what they search for, which items they checkout with or the ones they add to their wish list.”
Email marketing has grown to tailor a business’s offering to individual consumer wants and desires. Helping businesses accurately target potential customers.
On Social Media
Social media tracking can be a bit more difficult than the other platforms mentioned. Each social media platform operates differently so staying on top of the current analytics tools is important.
Monitoring engagement and click-through rates is important on social media, as these platforms are awareness generating, as opposed to sales-generating platforms, generally. Regardless of how you digitally track your consumers in this digital world, it’s important for the success of your business to stay on top of data.
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