What is Behavioral Marketing [+ Examples]

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Business Digital marketing SEO Blog

Behavioral marketing is the natural way of evolution and focuses on the consumers, desires, pains, and requests. Behavioral marketing works by analyzing data on customer behavior and, based on it, forms a personalized offer.

We encounter behavioral marketing every day and have been used to it for a long time: personalized discounts, reminders of an undelivered purchase in email newsletters, birthday greetings, etc. Behavioral marketing is an effective tool, which leads to increased sales. This is why it is used by almost all businesses worldwide.

What is Behavioral Marketing?

The essence of behavioral marketing is the study of psychology, behavioral characteristics of buyers, and motivational incentives acting on them. Knowing all these nuances allows you to create advertising and content tailored to the needs of each user. For example, the person is sure to purchase if they see an offer that meets their desires and habits.

Behavioral marketing is the management of consumer behavior (whether an individual customer or the whole community or group) and a company’s activities using modern marketing laws and tools. It is very important to see ahead, to understand how the market situation and external circumstances can change. Behavioral marketing help to adjust your activities to increase sales and revenue.

Why is Behavioral Marketing Important?

Behavioral marketing allows you to find your most valuable customers and manage their lifecycle further in a good direction for the company. So, behavioral marketing help to:

  • Identify customers who represent a potential benefit. You can identify such customers by the length of time between the first and second purchase.
  • Form the most relevant offers. Gathering a sufficient amount of information, you can more accurately understand the needs and habits of each customer. You can offer merchandise at appropriate price points, select the ideal product items for cross-selling or upselling, identify effective interaction channels (email, SMS, push notifications, social networks, messengers), and effectively set up advertising or retargeting.
  • Anticipate the customer lifecycle and extend it where possible. Once customers’ life cycle is defined, you can understand when to offer a particular product or service.

If you know how customers act in different situations, you can greatly increase ROI.

Type of Behavioral Marketing

The type of behavioral marketing is segmentation. It is a tool that helps divide potential customers into groups for more effective communication with them. In other words, the more you know about the customer and how they act when choosing and using a product, the more competent communication with them you can build. The most popular behavioral segmentation criteria are:

  • Location and frequency of purchases.
  • Frequency of product consumption.
  • Consumer benefits (service, quality, speed, etc.).
  • Attitude to the product and expectations for its use.
  • Reason for purchase.

But don’t limit yourself to these parameters – you can set them to the needs of your business and add your peculiarities of market segmentation.

Plerdy User Behavior Analytics – Use Cases

We have prepared some use cases that will be useful for you and your eCommerce website.

Which pages to analyze from a usability point of view?

Clients` decision-making process is based on their user experience on the website. To prove this, we will analyze the Nike website with the help of our Heatmap tool. It is a great tool that can help you perform a UX test of your website.

The home page needs to be informative, communicate who you are, and expose products. Here you should always pay attention to clicks and scroll depth (they help you understand how deep the user reads the text). Scroll depth also can show you where it is better to place banners and other promotional materials.

The product category page should have a clear navigation panel, making it comfortable for the visitors to use it. In addition, the product category page must include filters, pagination, and high-quality images. In the case of mobile devices, your product category page shouldn’t be too long.

The product page is the place where users decide. It must include complete information that educates the visitor. Users shouldn`t have problems with the checking price, size, availability, etc.

How do I analyze usability based on a heatmap?

Heatmap collects how users behave on your website and interact with it. It shows the most clickable elements of the website and the least. You can change your website design and use areas more effectively based on this information. As a consequence, it will bring you more revenue.

How to analyze a shopping cart in an online store?

Shopping carts are one of the main things needed for online store success. Our Heatmap tool can help you understand how your customers behave and think after adding the product. In addition, our tool can show you the clicks and scroll depth of the specific user groups.

Our heatmap tool can also help you find differences between mobile and desktop users. As a rule, online stores get more traffic from mobile devices, so it should be your main focus. But this doesn`t mean you shouldn`t optimize the desktop shopping cart page.

User groups and how to analyze them?

It would help if you understood that every person behaves differently whether they visit the Google search results or paid ads. Many factors influence the person`s behavior, for example, sex, location, age.

Plerdy provides you with the possibility to create specific user groups. To do this, you need in settings name the group of users. Then you need to copy the script and paste it into your webmaster. This will help you monitor users that come to your website from different traffic sources.

How to analyze scroll depth?

Scroll depth shows you how long the user reads the content on the website. First of all, scroll depth helps you to formulate your marketing strategies. It helps you to know whether users stop scrolling and where. You can improve your content and engage visitors better based on scroll depth.

A great advantage is that it shows you where to place CTA and banners to reach the most impressions and clicks. Often online stores don`t analyze scroll depth and place CTA and banners in places where little people see them.

Difference Between Behavioral Marketing and Behavioral Segmentation

Behavioral marketing functions by studying customers’ behavior, psychology, and motivation. Such research allows adjusting advertising campaigns and website content for each consumer. The market offer must match the desires and habits of potential customers, and then the company can expect to close the deal. The main condition for behavioral marketing success is the anticipation of the market development, flexibility, and adaptation to various changes in the external environment.

Behavioral segmentation is useful for getting additional characteristics of the target audience. For example, you can segment potential customers and build communication with them differently to achieve the goal when collecting leads. This means you save money and time and immediately identify those you can work with to bring more profit.

Behavioral Marketing Examples

Below are five interesting behavioral marketing examples that can give you an idea of how to use behavioral marketing:

  1. Target. With the help of behavioral marketing company got insights to better sell to their customers. Moreover, they created products that are more interesting to people.
  2. Twitter. With the help of behavioral marketing, Twitter offers its users interest targeting. Thanks to this, people can show paid ads to targeted users.
  3. Orbitz. This company has found that Mac users buy more expensive hotels than PC users. It used this behavioral insight in its marketing and increased its revenue.
  4. Zuji. Behavioral marketing helped this business create personalized display ads for visitors. This bought the company a 100-fold increase in ROI.
  5. Netflix. Its success partially depends on behavioral marketing. It uses customer behavior, buying patterns, and feedback to sell films.

There are a lot of examples of how behavioral marketing has helped companies increase their revenue. You can find them on Google.

Conclusion

Behavioral marketing is a powerful tool in the hands of entrepreneurs. Gather more additional information, conduct special surveys for this purpose, offer to write reviews. Then study the information you receive and try out new tactics. Keep track of statistics from Google Analytics and Facebook Ads, email newsletters, and chatbot interactions. The more you know about your users, the easier it will be to build loyalty and cooperation.

It is necessary to incorporate behavioral marketing into your business, collect and intelligently use information about your customers, provide high-quality advertising and establish mutually beneficial cooperation.

Article by:
CEO Andrew Chornyy

CEO Plerdy — expert in SEO&CRO with over 11 years of experience.

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