Why do People Buy from You? The ultimate guide to understanding customer behaviour for your business
Understanding consumer behavior is likely one of the most explored, investigated and researched topics in the marketing world. A good understanding of it and leveraging off of it has been proven to double the reward of marketing efforts, increase customer loyalty, and even given companies and businesses the power to direct buying behavior.
Understandably, as many companies strive to grow their customer base and level up the customer loyalty of their target audience, they are investing heavily in market research to study consumer behavior. We don’t underestimate the value of this research, but consumer behavior also doesn’t need to be complicated.
We’re not talking about navigating a broken relationship here. We’re talking about wants and needs.
What is consumer behavior?
Consumer buying behavior refers to many aspects. Let’s pop the hood and look at what is at the core of customer purchases, buying decisions, and customer loyalty.
Psychological reactions are difficult to predict, but they are very important factors to understand when it comes to consumer behavior. Since a customer’s response is determined by perception and attitudes which are changing daily, it requires a vigilant and consistent monitoring.
Psychological responses can be simple such as when a customer’s buying behavior is influenced by seeing a burger advertisement when they’re hungry. Or, they can be more complicated, such as wanting to belong if everyone else has one of something.
The behaviour and customer loyalty of your clients depends heavily on their personalities, backgrounds and education. Some of them are jovially outgoing and others calm and collected. Understanding the target audience within a separate group can be very important to understanding their customer behavior. The thought process of varying personalities will be different.
Social trends are external influences consumers listen to, such as peer recommendation, society norms, and trends. It’s also important to consider the socio-economic influences on your customers. Some customer groups may have more disposable income and want to show it off by spending a lot.
Others might have a lesser income but want to make it seem like their spending ability is higher with ‘fancy looking’ products. Consider the social trends of your consumer base before you hit enter on that next campaign.
Why is understanding consumer behavior important?
Research on consumer behavior helps companies understand what influences their purchasing decisions. Understanding consumer choice is key to filling the gaps in markets, by finding the need and want for products.
Studying customer behavior enables marketers to determine how a product can be presented and marketed to the best possible audience and in the best way. Knowing consumer purchasing behavior is the best tool you can use in converting visitors to paying customers.
How to leverage consumer buying behavior in marketing campaigns
Below is the ultimate guide to ways you can leverage this newfound knowledge of buying behavior to increase your market share, ultimately driving sales and purchases for your brand.
It’s important to understand that consumers differ from other consumers and so does their consumer buying behaviour. You don’t want to limit your company growth by only advertising to one type of consumer though. So, if your marketing campaign is going to advertise to each different customer in your customer base, you’ll need to differentiate it.
This means that before you hit enter on that post, ask yourself, does it speak to the many consumers in the varying customer groups you want to be paying attention? Does it cater for the younger buyer, those who can’t read, those who might have a disability? Differentiate your marketing and you differentiate your brand.
Design a relevant marketing program
Sometimes a relevant marketing campaign can be confused for a campaign that markets directly to the behaviour of the individual we’re selling to. For example, while targeting kids, we might try to communicate our brand as the one that all the other kids at school have.
Often, we overlook mum and dad. They are also relevant, if not more so in this scenario. Their buying behavior could be influenced by a psychological want for their kids to be kept busy or happy, or to go to bed on time!
Depending on which consumers you target, your messaging should consider the fact that a range of them might be relevant. Conducting a consumer behavior analysis and using resultant customer data, marketers can identify consumer motivation for buying and which customers are relevant to what you’re offering.
Predicting market trends
An analysis of consumers behaviours shouldn’t go without an analysis of those aspects that strongly influence customer wants and needs, such as trends. Recent trends in consumer behavior include environmentally friendly foods and healthful lifestyle choices.
Several companies including McDonald’s have observed a change in the market and acted on it. They introduced healthy meals according to consumer behaviour and changed the way they conduct service to make them seem less ‘fast foody’. By examining consumer behavior, the company’s marketers avoid wasting time on marketing that will fall flat.
Collect customer data alongside data on what influences your consumers buying behavior. Trends are an important place to start.
Innovate new products
Often consumers buying behaviour can shift quickly, and a company needs to be able to respond just as quickly. When buying behavior changes, so to might your product offerings or service.
Marketers need to frequently and consistently collect customer data that allows them to step into the minds of consumers and imagine what they might be looking for in the next company they deal with, the next brand they wear or their future product purchases.
Retention of consumers
Okay, great, you’ve nailed the leveraging of consumers behavior to get them in the door of your company or brand and buying. However, it doesn’t stop there. You now need to be considering how consumer behavior influences customer loyalty and your retention of them as a customer.
At any point, a customer can be influenced psychologically or by social trends, or even their own personality to turn away. So, how will your company or brand retain a customer? It’ll require continuing to follow the steps in the ultimate guide above, ensuring you differentiate and design a relevant marketing program in line with trends and full of innovative products.
Get in touch today!
Looking to unlock the power of consumer behaviour but unsure where to start? There’s a fair bit to consider and do before you hit enter! Get in touch with our team at First Page and we’ll ensure you get in touch with your customers on a deeper level.
Let us show you how your business can leverage off different consumer behaviours and patterns, as well as how your business can affect them. Trust us, even a sprinkling of psychology can take your business to the next level.