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How to Conduct a Customer Behavior Analysis (6 Easy Steps!)

Listen up, trailblazers! Are you ready to nail customer behavior analysis as a crucial part of your marketing strategy?

If you’re not already doing it, you might as well be dancing in the dark at a rave without glow sticks.

Conducting this type of analysis is GOLD for brands in today’s crowded marketplace. 

customer behavior analysis - Jerry Seinfeld GIF "that's gold Jerry"

Are you a seasoned entrepreneur hungry for fresh strategies? Or a budding startup with dreams of conquering the world?

Either way, we got you.

Stay tuned as we unleash strategies to help you unlock your brand’s true potential.

And leave your competitors in the dust.

Let’s roll.

What Is a Customer Behavior Analysis

Wouldn’t it be great if you could predict your customers’ shopping habits?

Not only “what” they’re going to buy, but “when, how, and why?"

The more you know about your customers, the better you can predict their spending patterns.

And that’s where a customer behavior analysis joins the rave.

This bad boy delivers a 360-degree understanding of your customers. 

It uncovers the pivotal moments and triggers that guide your customers’ purchasing decisions. 

You can learn what motivates them to click that "Buy Now" button and what draws them back to you.

You then use that data to tailor a personalized customer experience that makes your peeps feel seen, understood, and valued.

Isn’t that what we all want?

Here’s Why a Customer Behavior Analysis Is Important

Let’s unveil why customer behavior analytics is an absolute game-changer.

1. Understand customer needs and preferences

Whether you consider Dr. Phil the ultimate self-help guru or a manipulative TV hack, he’s onto something here. 👇 

customer behavior analysis - quote "the best predictor of future behavior is past behavior" Dr. Phil McGraw

The past buying habits of your customers reveal their unspoken motivations. 

The deeper your understanding of those motivations, the better you can predict future spending. 

Because customers won’t always tell you what they want.

What they really, really want.

If you wanna get them flashing that plastic your way, you’d better roll up your sleeves and do some serious digging.

Dig deep into their behavioral patterns to discover the triggers that sway their decisions.

Use these insights to anticipate future needs and proactively meet expectations.

As a bonus, you’ll leave those competitors who sleep on customer analytics trailing in your wake. 

2. Enhance customer engagement

In today's noisy digital landscape, countless distractions vie for your customers' attention.  

To stand out and connect with your audience, you gotta speak their language, anticipate their needs, and cater to their desires.

Once you've got the data, you can craft hyper-personalized experiences that rock your audience to their core. 

When people feel understood and valued, customer loyalty and user engagement skyrocket.

And so do your conversions.

3. Personalize marketing strategies

Did you know? 

71% of consumers expect personalization when they shop. 


cusotmer behavior analysis - GIF woman crossing her arms "we're in a fight now"

And 76% get real ticked off when brands fail to deliver that personal touch.

So, segment your audience based on their behaviors, interests, and buying patterns. 

Then craft laser-focused digital marketing campaigns that hit all the right notes for each segment.

4. Improve product development

A behavioral data analysis spills the tea about what customers think about your products.

The features. The benefits. The potential improvements.  

Once you've got that precious intel, level up your offerings to meet your customers' expectations.

You may also identify untapped segments and unmet needs to expand your customer base and capture new markets.

With user behavior analysis tools in your arsenal, you can spot emerging trends before they go mainstream.

customer behavior analysis - James McEvoy GIF

This foresight gives you a decisive competitive edge.

You can anticipate shifts in preferences.

And lead the pack in your industry. 

You’ll have the power to adapt your marketing strategy on the fly and wow your audience with your forward-thinking approach.

6. Optimize pricing and promotions

Determining the right pricing strategy can be tricky. 

Behavioral analytics empowers you to examine consumer responses to various price points and promotions.

This insight will reveal that elusive sweet spot. 

The perfect balance between luring customers with competitive pricing and maximizing profitability.

7. Increase customer satisfaction

Happy customers are loyal customers. 

customer behavior analysis - Leonardo DiCaprio GIF from The Great Gatsby

Customer behavior analytics equip you with the tools to anticipate the needs of your target audience.

To offer personalized recommendations that will make their hearts skip a beat. 

The result? 

Skyrocketing customer satisfaction levels.

Glowing word-of-mouth.

And an unstoppable army of brand advocates spreading the gospel to anyone who listens.

8. Maximize Return on Investment (ROI)

A customer behavioral analysis will reveal where to allocate your budget to generate the highest ROI.

Let’s look at a consumer behavior analysis example

Imagine you're the proud owner of a thriving online boutique, and you’re looking to boost sales.

So you turn to your consumer behavior analysis report to uncover your customers' shopping habits. 

You discover that many of your fashion-forward customers have an insatiable love for bold, statement pieces. 

And a penchant for shopping online in the early evenings. 

Thanks to this priceless intel, you have the power to craft a compelling marketing campaign.

So, you showcase your latest range of head-turning, trendsetting pieces and offer discounts on purchases made after 6 p.m. 

Your campaign hits the digital runway, and your customers feel you truly "get" them.

And they flock to your virtual storefront like bargain-hungry shoppers on Black Friday.

customer behavior analysis - House of Lies on Showtime GIF


Some Things That Influence Customer Behavior

Let’s uncover the three internal factors that influence consumer buying behavior:

1. Personality

Everyone is unique, with their quirks, preferences, and values. 

customer behavior analysis - FBoy Island GIF "I am a little weird and that's just who I am"

And you know what? 

That impacts customer engagement with your brand.

Are they adventurous risk-takers or more cautious and methodical? 

Do they crave the limelight or hide away in the corner? 

Understand these traits to connect with your tribe on a level that screams, "I get you, and I got what you need!" 

Master that, and you’ll have ‘em eating out of your hands.

2. Psychological 

We're all emotional creatures. 

We want things, we need things, we feel things. 

That's how our brains work. 

When you tap into the inner workings of your customers’ minds, you’ll gain the power to build connections that transcend transactions. 

You become a Jedi Master—anticipating wants and needs to deliver unforgettable experiences. 

Defusing stressful situations.

And preventing potential customer churn. 

3. Social

It's incredible how society's collective actions and preferences shape customers' purchasing decisions.

Just look at acid-wash jeans, crocs, and fanny packs.

customer behavior analysis - Leonardo DiCaprio GIF from The Wolf of Wall Street

These tragic fashion faux pas put our style choices to the test.

And let's be honest, we didn't exactly nail it.

Humans are wired to crave connection and acceptance, and that's where social trends come into play.

From that FOMO feeling to the insatiable desire to be part of the "it" crowd, it's all about riding the wave of what's hot and happening.

As social trends are ever-changing, you, too, must be agile and adaptable. 

Types of Buying Behavior

From savvy bargain hunters to impulse buyers, customers display four types of consumer behavior

So, what are the 4 types of customer behavior?

Let’s take a peek behind the curtain.

1. Complex buying behavior

What happens when consumers set their sights on splurging on fancy goodies like a brand-new car or a top-of-the-line TV?

Their involvement in the purchase and market research process goes through the roof.

customer behavior analysis - GIF of angry woman holding up paperwork "I have done the research!"

So does their Mastercard bill.

These shoppers go all Magnum P.I., turning into tenacious private eyes hunting down the latest reviews, pros & cons, and the best deal possible.

As these purchases are less frequent and carry more risk, people tend to take their sweet-ass time before deciding.

2. Habitual Buying Behavior

Brand loyalty isn't usually top of mind for most folks when buying personal care products, food, cleaning supplies, and all that jazz.   

People tend to focus more on convenience, quality, and price when making everyday purchases. 

They want stuff that works, is reliable, and fits their budget.

So customers tend to wander the aisles, searching for products that offer the ultimate bang for their hard-earned buck. 

3. Dissonance-Reducing Buying Behavior

Customers often exhibit dissonance-reducing behavior when searching for pricier products with a limited brand selection. 

Think paint, tiles, etc. 

It’s like opening up the Neapolitan ice cream container to find vanilla's the only flavor left.

customer behavior analysis - Homer Simpson GIF "Oh!"

If you want it, you have to settle for what's available. 

4. Variety Seeking Buying Behavior

Here, customer involvement takes a backseat, and brand-switching steals the show. 

These types of consumers are intrepid explorers, forever on the lookout for fresh sensations.

They love to switch things up, whether rocking different shades or strutting in a new pair of kicks. 

Change is their middle name.

And they own that sh*t.

How to Conduct a Customer Behavior Analysis

Start by researching user marketing analytics tools (like Google Analytics) to find one that works for you. 

Then, you’re on your way to predicting your customers' moves like a chess grandmaster.  

1. Segment your audience.

Customer segmentation shows you what fires the crowd up.

customer behavior analysis - GIF of crowd of Minions cheering

Divide your audience into segments based on:

Then you can create targeted campaigns that speak directly to each customer segment's wants and needs.

That's how you forge connections that last a lifetime.

2. Build buyer personas to identify selling points.

Buyer personas are like the blueprint for understanding your customers on a whole new level. 

You're not just looking at generic demographics.

Oh no.

You’ll be creating vivid, flesh-and-blood representations of your ideal customers. 

Their hopes, dreams, fears, and pain points—the whole nine yards.

Once you've crafted these kick-ass buyer personas, you can fine-tune your marketing efforts that resonate with each segment.   

3. Collect data.

customer behavior analysis - GIF "one does not simply ingore data"

Qualitative and quantitative data analytics are the dynamic duo of customer insights, and analyzing customer behavior is crucial.

Qualitative data is all about diving into the "why." It's like having a heart-to-heart with your audience. 

You’ll better understand their motivations, desires, and pain points. All that juicy stuff that numbers alone can't reveal. 

Quantitative data is all about measurable information. The stuff you can crunch, analyze, and draw precise conclusions from.  

Once you’ve got this data, you can spot trends, patterns, and correlations you never knew existed. 

4. Compare your qualitative and quantitative data.

Now it's time to bring these two worlds together. 

Quantitative data provides the big picture, showing overall trends and patterns. 

Meanwhile, qualitative data fills in the colors, giving context and depth to the numbers.

Marrying these two powerful forces unveils the complete picture.

customer behavior analysis - Rick & Morty GIF

You’ll understand not only what's happening but also why it's happening.  

5. Optimize the customer journey with the data results.

From the moment customers first hear about your brand to the point of becoming loyal advocates—every step matters. 

Your customer behavior data will show you where customers drop off or get stuck along the way. 

It could be a clunky checkout process or a lack of personalized recommendations. 

Take that info and revolutionize the customer journey.

Use customer journey mapping tools.

Pinpoint pain points.

Analyze customer preferences and customer retention

And you’re on your way to enhancing the user experience.

That keep ‘em coming back for more.

6. Analyze what’s working, what’s not, tweak, repeat.

customer behavior analysis - Schitts Creek GIF "why am I getting booed?"

Consumer analysis is a dynamic undertaking that, like an adorable new puppy, requires constant attention.

It’s not a one-and-done type of situ.

As the landscape of shopper behavior evolves, so should your analysis. 

Measure the impact and effectiveness of your marketing campaigns, and let the shining stars that drive results take center stage. 

And keep an eye out for areas that need a lil’ love. 

Be bold.

Experiment like a mad scientist.

Rinse and repeat. 

Supercharge Your Business with Customer Behavior Analysis

In this fast-paced and ever-evolving world, trends change faster than you can say "trending hashtag."

So what’s the key to crushing it?

Delivering unparalleled value and meeting customer service expectations head-on. 

When you “get” your customers, you don't need to chase fleeting trends. 

You stay ahead of the curve because you've got real, tangible insights at your fingertips.

Hustle hard.

Dig deep.

And get to know your customers like they're your best friends.

You've got all the tools to make it happen, so fire up those engines.

Because the time for action is now.


Kirsty Wilson is a Smart Blogger-certified content marketer and self-taught margarita aficionado. With a passion for Digital Marketing and a knack for crafting captivating Landing Page Copy, she sprinkles her Aussie charm and cheeky humour across lifestyle, travel, and marketing blogs. Currently adventuring through Mexico, she documents her solo travels to inspire fellow Gen-X gals to #SeizeTheDay!