What is consumer behavior? Strategize the way your clients want

Have you ever looked at someone and wondered, what's going on in their head?

If you're nosy like me, you want to know why people do what they do. And if you're a manufacturer, you absolutely need to know how your customers found out about your product and why they bought it.

Analyzing consumer behavior data is your ticket to the show that is consumer behavior.

What is consumer behavior?

Consumer behavior is the study of how and why people make purchases and what influences their decision-making along the way.

Some companies use retail analytics software to collect the data needed to study consumer behavior. These tools help companies collect and organize retail data, create smart dashboards to display real-time analytics, monitor business KPIs, and automate data reporting.

This software is often integrated with retail management systems to create a comprehensive data repository for all business operations.

Importance of consumer behavior

Consumer behavior leads to a better understanding of target markets. The more you know about your customers, the easier it will be for your business to make changes that will use your time and money in the best way.

Marketing Campaigns: First impressions are everything. Wouldn't marketing be so much easier if you knew exactly what your target market is looking for? Yeah. Exactly. Consumer behavior data shines a light on the changes you need to make to reach the right people – those who want your product or service. This includes understanding who your customers are, where they buy, how they buy and why. Customer retention: Businesses need to ensure that they are not only thinking about attracting new customers, but also retaining existing customers. Convincing consumers to make another purchase is quite a hurdle, so once you have them, you have to try to keep them. Repeat customers are more likely to incorporate your product into their routine and become brand advocates by recommending you to family and friends. Customer Differentiation: Consumers are not created equal. Although most businesses focus on one target market, the individuals who make up the market have different needs and goals. Be curious about your customer base so you can target more demographics. Competitive analysis: Analyzing the behaviors of your own customers does not complete the big picture. As useful as it is to know why people are buying your product, it's equally important to understand why others haven't. It is essential to examine the performance of your competitors and why certain consumers have chosen them over you. Taking these results to heart could give you a competitive edge. Market Trends: Studying consumer behavior over time can help you identify peaks and troughs in the industry. Your business will make better supply decisions if you keep an eye on market trends to better understand where demand is going. Product Portfolio Management: Understanding your customers gives you much-needed insight into how different products are performing. Keeping this information in mind when managing the product portfolio allows you to adjust supply to meet demand. If your customers feel much stronger about one of your products, it may be worth allocating more resources to it and reducing the time and money spent on the others. If the market no longer resonates with anything, it may be time for a new product. The 4 types of consumer behavior

There are four types of consumer behavior that a business can study. Individuals may exhibit one or more of these behaviors, and companies should collect data to determine which are most prevalent in their specific customer base.

Complex purchase behavior

Complex consumer buying behavior occurs when a consumer makes a single purchase. It can either be the process of buying an expensive item or something the buyer is not very familiar with. In this case, the consumer spends a lot of time researching before buying to make the right decision.

The consumer research phase of this buying behavior may include additional market information or consultation with friends, family and experts. The...