How Behavioral Marketing Can Increase Your Sales
Today, everything is personalized. Right from your choice of outfit to wealth management packages to your preferred coffee at Starbucks, every single thing is customized to your preferences.
With all the development in the marketing arena, it has become crucial for organizations to tailor their offerings and communication to suit their target audience’s preferences. In order to achieve this, marketers have increasingly begun to lean towards behavioral marketing.
So what is 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 audience and their expectations from brands.
An everyday instance of behavioral targeting would be the Facebook ads that appear on an individual’s news feed – tailored to his preferences.
According to Bryan Brown of Silverpop, behavioral marketing is a combination of individual behavior and marketing automation.
He says that implementation of automation alone would lead to irrelevant messages – whereas sole focus on customer behavior will lead to data silos.
That said, automation and individual behavior needs 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 of the customer behavior.
One of the stellar instances of behavioral targeting involves Amazon. Its revolutionary recommendation engine has changed the way e-commerce websites operate – forever!
By studying behavior of visitors, Amazon was able to recommend products that were aligned to individuals’ preferences. This greatly improved the upsell and cross-sell potential of the company.
How does it help a customer?
From a customer’s perspective, when he/she visits a website, the publisher seeks permission to collect information from the customer. When agreed upon, a unique profile is created for every individual, and a cookie begins to collect information of his browser history and search preferences.
This information is then utilized to personalize the experience of the individual during subsequent visits.
Setting up behavioral marketing processes involves the following steps:
- Implementation of effective marketing analytics tools.
- Establishing an integrated marketing database for comprehensive understanding.
- Segmentation on the basis of behavioral patterns.
- Setting 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 be monologues.
Therefore, it is imperative that businesses carefully study their customers’ behavior so that they make appropriate suggestions to drive sales.: