Learn about Customer Behavior Analytics and its best practices for your Business

Learn about Customer Behavior Analytics and its best practices for your Business
Published By - Kelsey Taylor

Customer behaviour Analytics and its best practices help business identify their target audiences and their preferences. Moreover, the subject of customer behaviour analytics and its best practices is vast. 

It also analyzes the frequency, preference, and perceptions of any customer towards products and services. Hence, this analysis can help businesses communicate effectively with their target audiences.

According to Clint Fontanella, Manager at HubSpot and Editor of the HubSpot Website Blog, “Customer behavior refers to an individual’s buying habits, including social trends, frequency patterns, and background factors influencing their decision to buy something. Businesses study customer behavior to understand their target audience and create more-enticing products and service offers.”

Further, businesses often encounter customer behaviour patterns that can be influenced by various factors. Hence, in this article, we will discuss customer behaviour analytics and its best practices that businesses must follow.

Understanding Customer Behavior Analytics and its best practices for your Business

What is Customer Behaviour Analytics?

Customer behaviour analytics refers to the assessment process of understanding customer engagement with the business. Further, the process analyzes the behaviour by using qualitative and quantitative techniques. 

Further, customer behaviour analytics paves the way for businesses to comprehend the right audience, the right channel, the right approach, and the right time. Moreover, customer behaviour analytics provides businesses with deeper insight into the customer’s journey. Hence, businesses utilize it for customer acquisition, engagement, and retention, which comprises the entire customer journey. 

Moreover, customer behaviour analytics monitors a customer’s journey and gains insights. Customer behaviour is influenced by factors that are internal and external. 

Factors that Influence Customer Behaviour:

  • Personality and Behavioural Factors: Customers can often be categorized according to their personality and behavioural patterns. For example, customers who are impulsive buyers purchase products on a whim. Although, customers who are more strategic and practical often verify and research before making any purchases. Moreover, this factor is generally internal and subjective to various traits.
  • Psychological Factors: Psychological factors can be both internal and external. Moreover, psychological factors indicate a person’s response to certain situations. These factors also depend on the person’s perception and their attitude that changes constantly. For example, a customer may come across various advertisements for chocolates that can lift their spirits. Although, they may not buy the chocolates on a regular basis. However, if they would like to celebrate an achievement or lift their spirits, they would purchase the pack of chocolates. Hence, a customer’s psychological response may differ under various circumstances.
  • Social Factors: Social factors are purely external in nature. Customers often observe social trends and fashions that gravitate them towards various products and services. Further, these factors could be recommendations from peers, trending activities on social media platforms, or constant changes in societal norms. For example, smartphone users have their preferences between Android and iOS systems. However, a majority of iOS users in the peer group could influence Android users to change their preferences and vice versa. Hence, these factors are completely external and depend on the influence of social phenomena on a customer’s behavior.

Importance of Executing Customer Behaviour Analytics and its Best Practices

  • Understanding Customer Value:

Firstly, an important aspect of customer behaviour analytics and its best practices is understanding the customer’s value. Moreover, it helps businesses identify potential customers and their requirements. It also helps segment target audiences to attract more customers and benefit the business.

  • Personalizing Experience and Content:

According to a study by Accenture, 41% of customers change companies and brands as a result of low personalization. Further, personalization has become a pivotal part of any customer journey. Moreover, customer behaviour analytics and its best practices help organizations in both B2C and B2B businesses. Hence, businesses need to learn and deep dive into their customer’s journey. Therefore, it helps identify profitable segments and targets for businesses. It also helps optimize content as per experiences, which in turn optimizes opportunities for conversions.

  • Retaining Customers:

According to SEM Rush, “44% of businesses focus on customer acquisition, while only 18% focus on customer retention. 89% of companies say that excellent customer service plays a huge role in customer retention. 76% of companies agree that customer lifetime value is an important concept in their organization. However, only 42% of companies can accurately measure the lifetime value of their customers.”

It is pivotal to gain a loyal customer base, but customer retention is also an important part of the process. Hence, businesses must follow customer analytics and its best practices to identify loyal customers and ways to retain them.

Customer Analytics Framework: What are the Ways to Conduct it?

Firstly, businesses must identify the customers they wish to analyze. Hence, here are some questions they can set up to identify these customers:

    • Who is the customer? Their age, demography, location, purchasing power, etc.
    • What are the customer’s preferences? Here, businesses can compare their product, service, or solution to their competitors.
    • What is the mode of purchase? Businesses must expand their product to the online market in case the majority of their customers prefer it.
    • What is the mode of communication? There are several ways to communicate and engage with customers. Traditional marketing and Online marketing are separate modes of communicating. Businesses may find one better than the other or in some cases, both forms are used to create customer engagement.
    • What are the pivotal stages in the Customer’s journey? A customer goes through various stages while purchasing. Businesses must understand the importance of each stage and provide resolutions accordingly.

Here are the Best Practices that businesses must follow in Customer Behaviour Analytics

  • Identifying and Segmenting the Audiences:

Firstly, customers must identify and segment their potential audiences and customers. Moreover, the objective is to recognize major categories that businesses can target. It also helps understand the differences between various customers, their segments, and preferences. As a result, it is one of the best practices in customer behaviour analytics as it provides deeper insights into customers and their preferences. It also helps businesses acquire, market, and strategize processes that lead to successful conversions.

  • Content Personalization for Marketing Strategies:

Customers are often attracted to brands that make them feel valued. Hence, Content Personalization is one of the most successful and proven best practices in customer behaviour analytics. Further, once a business identifies its target audience, it needs to create a marketing strategy to attract these potential customers. Moreover, here, businesses can utilize qualitative methods like interviews, group studies, surveys, etc. It also helps comprehend what the audience expects. Hence, businesses can then utilize the information to personalize content and effectively communicate with the audience. Therefore, this increases the appeal of the businesses while creating a sense of value for the customers. Moreover, this practice works for both potential and loyal customers.

  • Collect and Compare Data:

Data is an important resource for any business. Although newer businesses may not have historical data available, they can always compare competitive data through various marketing strategies. Moreover, analyzing data can help businesses structure the customer’s journey and identify any discrepancies. Hence, it helps create a deeper analysis of a customer’s journey and their conversion. It also helps recognize unique behaviours and identify high-value customers for the business.


In conclusion, customer behaviour analytics and its best practices benefit businesses by providing actionable insights into a customer’s journey. It also helps businesses comprehend their customer’s behaviour. Hence, it leads businesses to select appropriate techniques to engage and communicate with their customers. 

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