Behavioral marketing is all about leveraging real-time customer data to drive more relevant and valuable communications. The best behavioral marketing software allows you to build personalized experiences based on your customers’ behaviors and preferences. And who doesn’t want to provide their customer with the best-in-class experiences?
In this blog, I will take you through what behavioral marketing is, why it matters for your e-commerce business, and how you can use it effectively in your organization.
What is behavioral marketing?
Marketing is about delivering solutions to those who might benefit from them.
Typically, marketers have had a difficult time using data to identify and target their key audiences. With minimal data to work with, organizations have used some less-than-ideal marketing practices: consumers are bombarded with irrelevant ads, emails, and other forms of communication that they simply ignore. Because it feels like marketing, and they want something else.
This is where behavioral marketing enters the frame. It is a method of gathering data on consumer behavior in order to segment and target audiences with striking precision. This type of marketing is focused on different trends and patterns of engagement and behavior in order to match specific intents and interests. The goal is to understand the needs of the customers in the ideal market.
According to McKinsey, businesses that work with customer data outperform their competitors by 85% in sales growth and more than 25% in gross margins.
Behavioral marketing is the method by which companies target audiences based on their behavior, interests, needs, demographics, and location. Behavioral based marketing also looks at other metrics using web analytics, cookies, search history, and other insights. With advanced segmentation of audiences based on specific behaviors or customer profiles, e-commerce businesses can deliver incredibly relevant content and offers rather than sending a general message to all audiences. The definition of the goal of behavioral marketing is to cut through the noise and target the right people with the right messaging.
Automated behavioral marketing
Data is becoming incredibly valuable to every e-commerce, and as businesses continue building their data infrastructure, they get better at generating and delivering relevant content to their customers.
Today, with marketing automation, predictive analytics, algorithms, and machine learning, e-commerce businesses can win big time with behavioral marketing. A Customer Data Platform can help forecast customer behavior in the future. This means you will be able to predict when customers are more likely to buy again, and when they are likely to churn.
Use your customer data strategically to understand audience preferences and create relevant experiences for them. E-commerce businesses that collect customer data to create personalized experience for their customers are winning big time. In fact, 90% of consumers find personalized marketing content appealing. You should aim to cut through the noise, and provide them with what they find relevant every single time.
Customers have a tendency to ignore any advertising they see as too aggressive. You can mitigate this with behavioral marketing because customers only will engage with content they’re interested in. Which you will have an understand of based on your insights from a Customer Data Platform (CDP).
If you keep the message and content focused on the individual user, and one-to-one marketing tactics, you will be more effective in your marketing. By using data you can help solve customer needs at scale with automated campaigns and advanced customer segmentation.
Behavioral marketing software
Behavioral marketing software refers to the various tools used to implement behavioral marketing. It is a way of understanding and targeting customers based on their past behavior, as opposed to simply demographic information.
Marketers use this information about their customers’ behaviors and preferences in order to build personalized experiences for them. This can result in higher engagement rates and more revenue for businesses.
You can track different types of behaviors that include include:
- Where do people go on your website? (Landing page)
- Which products do they look at? (Product page)
- What content do they consume? (Blog post or white paper)
- Many more with a CDP.
Behavioral marketing software can be used to target customers with personalized offers, content, and promotions.
There are a few basic types of behavioral marketing software, each with its own unique applications that add value to your customer relationships. One of the ways to do that is with personalized mail campaigns. These campaigns take the form of emails sent directly to the inboxes of targeted groups of consumers based on their behavior and preferences as they browse through web pages.
Use them to send targeted emails based on time periods such as birthdays or holidays when gifts are purchased more often than during other times of the year. For example: If someone has made a purchase on your website but never completed checkout, you may want a follow-up email reminding them about placing an order in case they forgot something important like shipping information or payment details so there is no confusion later down the road when it comes time for delivery!
Build personalized experiences based on customer data.
Behavioral marketing software allows you to build personalized experiences based on your own customer data. It’s not enough to use behavioral data as a general guide, though. You need to take that knowledge and create relevant, valuable, personalized experiences for each individual customer. You can only do this by connecting the dots between your company’s products and services and what matters most to your customers. All while making sure your brand is represented in the right way at precisely the right moment.
One way of achieving this level of insight is with a Customer Data Platform.
A Customer Data Platform is a system that empowers you to be able to:
- Collect data from every touchpoint of your customers
- Store data in one single place
- Unify customer profiles
- Segment customers
- Activate customer data in different tools that can drive personalization and revenue
The main purpose of a CDP is to consolidate customer data from a variety of data sources. It is a platform that enables an intelligent approach to creating audiences based on those data insights and makes it usable across every possible channel.
Basically, a CDP allows you to know, understand, and interact with every single customer on a 1-to-1 level by using data.
A CDP is a system that can store, collect, consolidate, and analyze customer data. All that data that you collect about your customers are going through processing in the CDP. It can come from all your channels and touchpoints, from your website, emails, advertising campaigns, CRM, POS, social media, and more.
Drive more relevant and valuable communications.
Behavioral marketing is the practice of leveraging real-time customer data to drive more relevant and valuable communications. It differs from traditional marketing in two primary ways:
- Behavioral marketing relies on behavioral data that is collected through an opt-in process or by tracking consumer behaviors online. Traditional marketing may also use some form of customer data, but it’s typically acquired through a one-time transactional event (such as purchasing a product) or by capturing consumer information during checkout.
- Behavioral marketing leverages insights around customer behavior to deliver more personalized messages at just the right time and in just the right context with other channels like email, mobile messaging apps, and websites.
Behavioral marketing is a powerful tool for companies that want to build stronger relationships with their customers. It’s not just about sending more messages or using the right messaging; it’s also about understanding how real people interact with the products and services you offer. By leveraging real-time customer data, you can create personalized experiences that build trust, loyalty, and value within each individual relationship.