Customer behavior profiling is the process of using data to understand how clients interact with your product and company. The data is used to categorize customers, which allows for target market-specific advertising. By tailoring your marketing efforts to the behaviors displayed by your target market, the chances of selling your product are increased. Consumer behaviors are affected by psychological, personal, social, and geographical factors. These factors are used to segment the market into different categories, based on aspects such as their preferences, lifestyles, their current stage of life, and various other distinctive attributes and traits they possess. Grouping consumers enables you to perform an analysis of your product and determine who to sell to, and how to market your product.
What Is Behavioral Profiling and Why It Is Necessary?
Behavioral profiling, also referred to as psychometric profiling, is the process of identifying an individual’s specific characteristics and behavioral traits. In a business context, understanding your consumer’s behaviors can allow your business to characterize them into different segments, and to then apply marketing techniques which would appeal to that specific target group. The use of customer behavior profiling can allow your business to understand the following information about consumers:
- The sentiments that clients possess about their preferred brands and possible alternatives.
- The thought process that consumers apply when selecting a product.
- The behavior of the consumer during the shopping experience.
- The manner in which the external environment affects the consumers' shopping experience.
- The approach that your company can apply in order to produce effective and influential marketing campaigns.
How to Conduct Customer Behavior Analysis
to determining the different customer profiles, it is crucial to understand what data you would like to ascertain regarding your consumers. This is a key step, as it will inform the manner in which you select your market segment and, ultimately, how you advertise your product to them. The following is a brief description of how to carry out consumer behavior analysis:
Select your categories and segment your audience
To understand the market, you will need to obtain certain information about the consumers and categorize them accordingly. The following information can be used to segment the consumers into specific groups:
- Demographic information: For example, age, place of residence, gender, race, and household composition.
- Socio-economic status: Including the total income within their household, level of education, occupation, as well as an evaluation of the neighborhood where they reside.
- Brand affinity and product usage: This information allows you to determine how consumers interact with the different products that are currently in the market.
- Psychographics: These tests provide insight into the consumer’s lifestyle, life stage, personality and attitudes, as well as their opinions.
- Geography and geodemographics: This allows your company to understand where the consumers reside and what the demographics of the area are.
- Value proposition: Understanding what needs the consumer aims to address when purchasing a product can enable you to tailor your product to possess the value proposition that they require.
Grouping the consumers and identifying the value proposition for each group
Once you have obtained this information, you can then classify the consumers into their various segments. Thereafter, you can evaluate your product and, based on the data you have obtained, determine what drives the consumer’s decision to pick a specific product, and how your product can address their needs. The consumer’s decision can be driven by aspects like the brand of the product, the convenience of the purchase, or the price of the product.
Collect quantitative data on your consumers
It is also important to gather quantitative data to determine whether there are any identifiable trends that can be used to your company’s advantage. This data can include information such as product purchasing and usage data, as well as social media insights. This allows you to determine how you can market your product and what consumer needs your product will be addressed.
How to analyze customer behavioral profiles and adjust your marketing to increase the conversion rate
Once you have obtained as much information as possible about the consumer base, it is important to understand how to analyze this data and subsequently use the results to sell your product and increase your conversions. This can be achieved by applying the following steps:
Compare and consolidate the qualitative and quantitative data
Analyze your data concurrently to find any potential linkages in the data which demonstrate any particular trends in the behavior of the consumers. For example, once a consumer has purchased a product, your company can determine where the product was bought, how much was paid for it, and when it was purchased. Details like these can allow you to recreate the consumer’s journey and experience and determine how your product can be placed within their selection and purchasing process.
Analyzing your product
It is important to understand whether the product that you currently have on offer addresses the needs of the clients as identified through the data that has been collected. This can be done by looking at the specific needs outlined by the customer profile analysis and determining whether the value proposition of your product can address those needs in its current state. Additionally, you should examine how those needs are addressed and whether there are ways to improve the manner in which your product addresses them.
Optimizing your campaign
Now that you have obtained a profile of the consumer’s behavior, you can tailor your marketing strategy to target the specific segment that you would like to purchase your product. The insight obtained from the consumer behavioral profiling process should allow you to develop a campaign based on the needs of the consumer within your target segment.
Professional Customer Behavioral Profiling from Research Optimus
Research Optimus (ROP) has more than a decade of experience in providing reliable and accurate market research services to clients across the globe. Our team of analysts is able to provide data on a variety of fields, to businesses of all sizes. Specialized in ethnographic research, the customer behavior analysis data provided by ROP is obtained in accordance with ISO quality standards, ensuring that you receive the results of the highest quality through their market research services.
Our highly skilled team has vast experience in performing consumer behavioral profiling for your business. Contact us and let us help you target your market segment more precisely.