Behavioral Marketing And What it Means For Your eCommerce Business

Behavioral Marketing And What it Means For Your eCommerce Business

As the saying goes, “behavior drives people. people drive businesses”. Which is why it is essential to understand behavioral marketing and what it means for your eCommerce business.

Until now, data analytics and behavior study of customers was a thing of the future.

Never did eCommerce businesses rely on hardcore analytics and send out targeted emails to customers.

The whole concept of eCommerce marketing was a mystic art. Promotional mail or message was sent to every customer in bulk. In other words, it was a hit and miss method.

Today, eCommerce marketing has changed and assumed a whole new meaning.

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It’s all about tracking and measuring the behavior of customers, and every single person who visits your eCommerce website.

What Is Behavioral Marketing?

HubSpot defines behavioral marketing as:

Behavioral marketing

However, behavioral marketing is more of a science rather than an art.

To put it differently, an increase in the number of visitors (on a product page or web page) will provide more information to analytics and ad platforms about the visitor’s behavior. 

Based on the information thus received, your eCommerce business can send better-targeted emails and offers! 

Consumer data, when collected effectively, can be used to create a truly rich and satisfying brand experience for the customers.

Consumers are only engaged with content they’re interested in. This engagement level is determined by their previous search patterns and behaviors.

Sending individual-centric messages rather than channel or product-centric messages is the key to winning over visitors and converting them into loyal customers.

But a point that is often overlooked is that data collection can prove to be a very complicated affair. Not to forget, the raising issues of online data privacy and audience listening tools.

Behavioral Marketing Segmentation 

In the words of Jon Miller, “Knowing who your customers are is great, but knowing how they behave is even better”.

Behavioral marketing segmentation distributes customers based on behavior patterns.

Although every eCommerce business is different and has different customers, here are a few common ways to segment customer behaviors:

Behavioral marketing segmentation

#1 Geolocation

Geolocation is a sensitive tracking technique and hence often very accurate.

Metrics like continent, country, and region are tracked and hence facilitates local targeting.

Local targeting ensures that the products are sold based on the needs of the particular region.

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#2 Visit data

This metric reveals the entire browsing history for every customer. It provides details relating to if the customer is new or has visited your website before.

Segmenting visitors by the number of visits helps offer higher-value options to repeat visitors. Based on whether or not your visitor is new or repetitive, you can send out offers or promos to get them to finally convert.

#3 Intent To Buy

Data on the intent of a customer is a metric that provides in-depth insight into behavioral marketing patterns of customers.

Two or more unique users might fall in the same segment, say, in terms of their location but might differ in how much they value an offer or new products.

#4 Transactional Data

This segment is valuable in analyzing the behavioral pattern of repeat customers.

Based on the volume of purchases and types of purchases made by a customer, you can determine the lifecycle of the customer with your business. 

#5 Engagement Levels

Although engagement is a unique metric that varies from business to business, positive data on consumer engagement always implies that consumers trust your brand and their intent to purchase is increasing.

#6 Occasion

Behavioral marketing takes into consideration the occasion and/or timing of purchase. General occasions like holidays or personal occasions like a wedding or a birthday are one such metric.

Another metric that organizations usually track are the usual times during the day when the sales activity is relatively high/low.

The advantages of behavioral marketing segmentation can be identified as 4 Ps. They are:

  • Personalization – Targeting different groups of customers with different offers at the right time through their preferred channels increases personalization.
  • Predictiveness – Historical behavioral patterns influence future customer behaviors and outcomes by predicting future patterns.
  • Prioritization – Identifying high-value customers with a potential for business helps make better decisions on time, budget, and resource allocation.
  • Performance – Closely monitoring growth patterns and change in segment patterns helps not only analyze current business health but also track performance against budgeted goals.

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Behavioral Marketing Examples

1. Instagram

Paid ads on Instagram are used to target customers based on their interests.

Advertisers have the option of choosing from various interest categories and subcategories provided.

Instagram then publishes the advertisement to target groups that are interested in seeing that particular kind of content. Targeting can be perfected further by selecting a location(s) or type of device.

2. Orbitz

Orbitz, a subsidiary of Expedia Group is a travel fare aggregator website and travel metasearch engine.

As a part of their behavioral marketing strategy, Orbitz displays more expensive hotels to Mac users as compared to PC users.

Their segmentation strategy is based on their research which demonstrates that Mac users tend to spend more on hotels and travel.

3. Zuji

Zuji, an international travel website, serves up personalized advertisements to visitors based on their past browsing and search history.

They track user profiles for metrics like past searches and the number of visits and push personalized and relevant offers to increase the likelihood of a sale.

4. Netflix

Netflix gives recommendations to its users through a service called ‘Cinematch’.

Cinematch analyzes search or browsing history, watch history, and watch behavior to show customers similar clusters of content.

Netflix uses the strategy wherein it ‘familiarizes’ the content to match the user’s taste.

Netflix then employs its massive database and predictive algorithms to offer a more personalized streaming experience.

In Conclusion

Now that you understand behavioral marketing and have had a taste of its power through these examples in details, try it out for yourself!

Make a plan, identify the segments that are relevant to your business and try out some campaign ideas to analyze customer response.

If implemented correctly, you will be truly surprised by the amount of additional revenue you are generating.

Research shows that 76% of businesses do not employ behavioral marketing and hence are unconsciously losing a big chunk of money.

Analyze the data on customer behavior to make better-informed business strategies.

However, it is important to exercise the utmost caution while implementing behavioral marketing strategies, particularly with the rising concern of online data privacy.

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