Marketing analytics and the intrigue of behavioral marketing
Offering customers what they’re seeking requires a keen understanding of their behavior with the help of marketing analytics. This post delves into what behavioral marketing is all about.
With all the developments that have been taking place in the marketing space in the last decade, it has become crucial for organizations to tailor their offerings and communication to suit their target audiences’ preferences. In order to do this, they have increasingly begun to lean towards behavioral marketing.
Behavioral marketing or behavioral targeting is when consumers are targeted by marketers based on the former’s behavior or usage patterns on the internet. Data pertaining to usage and behavior collected from marketing analytics solutions is utilized by marketers to better understand their target audiences and their expectations from brands. An everyday instance of behavioral targeting would be the Facebook ads that appear on individuals’ news feeds that are tailored to their preferences.
Bryan Brown describes behavioral marketing as being a combination of individual behavior and marketing automation. The author says that only automation would lead to irrelevant messages whereas sole focus on behaviors with no automation will lead to excess data silos and lack of ways to scale communications. The customer behaviors will have to be integrated across channels and platforms (such as email, social networks, website, mobile devices, CRM, relational table data and so on) to get a comprehensive understanding.
One of the stellar instances of behavioral targeting involves Amazon. Its revolutionary recommendation engine changed the way e-commerce websites operated forever. By studying behaviors of visitors, Amazon was able to recommend other products that were aligned to individuals’ preferences. This greatly improved the upsell and cross-sell potential for the company.
From a customer’s perspective, when he/she visits a website, the publisher seeks permission to collect information from the customer’s usage. When agreed upon, a unique profile is created for every individual that begins to store information of how that individual has browsed the website. This information is then utilized to personalize the experience of the individual in subsequent visits to increase relevance.
Setting up behavioral marketing processes entails the following steps:
- Implementation of effective marketing analytics tools
- Establishing an integrated marketing database for comprehensive understanding
- Segmentation on the basis of behavioral patterns
- Set up automated programs that will trigger messages based on particular behavior
- Create content that is relevant to specific groups of customers
Marketing benefits of behavioral marketing include:
- Improved precision in targeting
- Increased engagement
- Tailor-made customer experiences
- Increase in conversions
Unless marketers understand what their customers expect and seek, all marketing operations would essentially become monologues. When customers across the world are expecting personalized offerings, monologues will get marketers nowhere. Hence, it is imperative that businesses carefully study their customers’ behaviors in order to make valuable offerings.
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