Understanding consumer behaviour helps you to do consumer profiling which helps to create amazing marketing strategy for business or product. Today we are going to learn some interesting information on consumer behaviour and consumer profiling. Consumer profiling is a method which you can mention as skills in your resume while applying for jobs in marketing department. But on top of that it’s a practice which helps you to take out maximum results from your marketing campaigns.
Whenever we hear the word “Consumer Behaviour” we got few questions in our mind such as:
- What is consumer behaviour?
- Why understand consumer behaviour is important?
- How consumer behaviour and consumer profiling is correlated to each other?
- How can we do consumer profiling?
- What are the benefits of understanding consumer behaviour and doing consumer profiling?
Today I am going to answer all of the questions. So let’s begin with the first answer.
What is Consumer Behaviour
It is the behaviour which consumer display while searching for product and willing to make a purchase. Using, evaluating and disposing of product and services that they expect will satisfy their needs. It is a process which helps us to understand how individuals make decisions to spend their available resources such as time, money and efforts on consumption related items. Majorly you need to understand the whole process by analysing
- What consumers purchase
- Why they make a purchase
- When the purchase was made
- From where they are buying
- Analyse the frequency of making purchase
- how consumers evaluate product value after making purchase (medium)
- How they dispose of it (exit rate)
This is all you need to do in order to start with understanding consumer behaviour. While working on marketing strategies you could use the existing date of your website to collect all this information. For example, I did a short analysis on consumer behaviour on my portal TheSEOGuy. For this I took the help of Google Analytics tool. This is not a platform where people make a purchase so in this case, user flow is important for me. In Google Analytics tool there’s an option of analyzing Audience. The very first thing to analyse in audience is “User Flow”. By understanding user flow, I could get to know what users are looking for and when they are leaving my portal.
As you can see in above image, I can get the important audience data under user flow. It will help me understand what consumers/users are actually looking and when they are leaving.
Now the second important thing is why they come on portal. In order to analyse this, I analyse the type of audience which land on my portal. For this, I analysed the interests under audience in Google Analytics Tool.
By analysing in-market segment, I can easily understand why they are coming to my portal. I also know what should be the potential audience I need to target if I am going to launch a campaign for the services available at my portal.
Let’s move on the point, when they made purchase. In case my portal there are no purchase options available so I could go and check weekdays and see on which particular day audience visit my portal the most. It will help me to understand user retention on my portal. For this I analysed Cohort Analysis under “Audience”.
Now in order to understand from where users are coming I could analyse sources. For this you need to explore Acquisition in Google Analytics and look for “Source/Medium” option.
Now that I know the sources, I could work on them and create content and campaigns according to best and worst performing sources.
Now move on to the next step which is analysing frequency. In order to do that, again I could analyse “Audience” in Google Analytics.
Under frequency, webmasters could see the consumer behaviour and understand how frequently they visit portal & generate page views. Once we are done with the data, we could easily do consumer profiling and run campaigns or make changes in content according to the numbers.
After learning about consumer profiling and behaviour, now the second thing is importance of consumer behaviour in marketing. Let’s learn the importance of it.
Importance & Benefits of Consumer Behaviour
It is very important to understand your consumer’s behaviour towards product or services. By understanding user behaviour you could drive your campaigns more effectively. It also helps when you are planning to launch new product or services. After analyzing performance data and doing consumer profiling, you could make changes in product or services accordingly.
It also helps webmasters to handle monotonous in web content and manage exit rates. Exit rates and exit pages play an important role in re-defining content and services on web. While doing consumer profiling, exit rates helps a lot to make changes in particular product/services/web pages.
Difference between Consumer profiling and Consumer’s Behaviour
Customer or consumer profiling is a process to create a portrait of customers to help webmasters/business owners understand customer decisions concerning their service. The customers can be broke down into groups of customers sharing similar goals and characteristics. Also each group is given a representative with a photo, a name, and a description. These small consumer groups can be used to make important decisions. Based on profiling you could design or drive campaigns to get the best out of it.
Hope this information on Consumer profiling and Customer Behaviour would help you to understand the process. However, if you have any feedback or suggestions then do comment below.