{"id":2515,"date":"2022-12-08T20:59:00","date_gmt":"2023-09-04T20:59:38","guid":{"rendered":"https:\/\/www.salesforce.com\/?p=2515"},"modified":"2023-10-19T17:19:40","modified_gmt":"2023-10-19T17:19:40","slug":"stay-ahead-of-consumer-behaviour","status":"publish","type":"post","link":"https:\/\/www.salesforce.com\/eu\/blog\/stay-ahead-of-consumer-behaviour\/","title":{"rendered":"Consumer Behaviour: How to Spot Trends and Shape Decisions"},"content":{"rendered":"\n

Businesses have been trying to unlock the secrets of consumer behaviour for centuries, but never before have they had so many powerful tools for doing so. Ever since a CD copy of Sting\u2019s Summoner\u2019s Tales became the first item sold on the Internet in August of 1994, customers have left behind a trail of digital breadcrumbs that might tell a tale about their shopping behaviour. <\/p>\n\n\n\n

Most of this data was ignored for years. It sat in digital siloes. It vanished into the ether. It was often erased. If customer data was kept, it sometimes presented security concerns, becoming more of a liability than an asset. If anything, data was looked at as a by-product of work, rather than a driver to improve business processes<\/a>. Now, all that has changed.<\/p>\n\n\n\n

For today\u2019s businesses, data is a crucial component of success<\/a>. And when it comes to analysing consumer behaviour, having the right data is key. Let\u2019s have a look at why consumer behaviour is an important consideration for SMBs, and then look at some ways that your organisation can analyse behaviour to engage its customer base<\/a> and drive loyalty.<\/p>\n\n\n\n

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What is consumer behaviour?<\/b><\/h2>\n\n\n\n

Consumer behaviour is the study of why, when, where and how people make purchases. By identifying the decision-making processes and patterns that guide consumers, businesses can improve their offerings, build emotional connections<\/a> and deliver more relevant products and services.<\/p>\n\n\n\n

Consumer behaviour is a key concern for digital marketing<\/a>. It\u2019s also important for delivering good customer service. But those are just some of the benefits of understanding customer behaviour. Let\u2019s take a look at seven others.<\/p>\n\n\n\n

7 benefits of understanding consumer behaviour<\/b><\/h2>\n\n\n\n
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  1. Increased customer retention and higher CLV (customer lifetime value).<\/span> <\/li>\n\n\n\n
  2. More effective development of new products and services.<\/span> <\/li>\n\n\n\n
  3. Ability to differentiate audiences and tailor the right offering to the right customer.<\/span> <\/li>\n\n\n\n
  4. Better insights into your competitors and why customers may be choosing them.<\/span> <\/li>\n\n\n\n
  5. The ability to optimise pricing strategies and increase ROI on marketing activities.<\/span> <\/li>\n\n\n\n
  6. Ability to <\/span>create a next-level loyalty programme<\/a> that delivers impactful rewards.<\/span> <\/li>\n\n\n\n
  7. Better ability to predict market trends and <\/span>stay ahead of your customer\u2019s needs<\/a>.<\/span> <\/li>\n<\/ol>\n\n\n\n

    Those are just some ways that analysing consumer behaviour can help your business. It\u2019s important to look at consumer behaviour on both the \u2018big picture\u2019 level \u2013 why a customer will want to stay with your business for the long haul \u2013 and on a granular level \u2013 why a customer will choose your product or service at the moment. <\/p>\n\n\n\n

    To do this, it helps to understand the different types of customer behaviour.<\/p>\n\n\n\n

    The 4 types of consumer behaviour<\/b><\/h2>\n\n\n\n

    1. Limited decision-making.<\/b> Sometimes, a consumer doesn\u2019t have a whole lot of choice when making a purchase. In these instances, they may be forced to pay more for an item than they usually would, or shop on a channel that they normally wouldn\u2019t use. In other words, limited choices can make buyer behaviour unpredictable.<\/p>\n\n\n\n

    2. Complex decision-making<\/b>. If a buyer does a lot of research before making a purchase, they\u2019re displaying complex decision-making behaviour. This is often the case with larger purchases such as luxury items or high-priced electronics when consumers will read reviews, compare products and seek affirmation that they\u2019re making a good choice.<\/p>\n\n\n\n

    3. Variety-seeking buying behaviour.<\/b> Consumers who display variety-seeking behaviour will purchase different varieties of similar items, say crisps or t-shirts. This type of behaviour usually revolves around inexpensive items, where the cost to experiment is low.<\/p>\n\n\n\n

    4. Habitual buying behaviour.<\/b> Frequently, people purchase items out of habit, not loyalty. For example, things like toilet rolls, milk or bin bags. These are inexpensive, widely available items that don\u2019t normally require much research or thought, and where there\u2019s not much brand differentiation<\/a>.<\/p>\n\n\n\n

    What drives consumer behaviour?<\/b><\/h2>\n\n\n\n

    There may be four types of consumer behaviour, but there are far more types of consumers. From fashion-forward shoppers to budget-conscious buyers to quality-first customers to impulsive basket-fillers, consumers come in all varieties. But behind every consumer is a bigger story, along with shopping habits that have been shaped by a lifetime of experiences.<\/p>\n\n\n\n

    Here are some of the things that contribute to consumer behaviour:<\/b><\/p>\n\n\n\n