Consumer behaviour is one of the most important concepts in marketing. It refers to the buying behaviour of a target group. This is valuable information, as brands are better able to tailor their products, platforms and platforms to consumers' needs. In this blog post, we explore the issue of consumer behaviour: what is the concept, what influences it and why is it important to analyse consumer behaviour data? Let's get to the answers!
What is consumer behaviour and what influences it?
Consumer behaviour is an umbrella concept that covers buying habits, patterns, trends in society and factors that influence consumer choices. Understanding consumer behaviour helps companies to better understand their target audience and thus offer more relevant offers and products.
The main focus is therefore on how people shop: how often they buy, which products they prefer, what their product preferences are, etc. Let's take a look at what influences consumer behaviour.
Personality traits
It is fundamental that the behaviour of consumers is influenced by their personality traits, the environment they grew up in, the upbringing they received. Personality traits are the most important influences on consumer behaviour. Think about it: some people are more easily seduced, more prone to impulse buying, while others will not even consider spending money they have not thought about carefully.
Psychological responses
Behaviour is influenced by psychological responses. These are almost impossible to predict, so they are difficult to calculate. However, it is possible to aim for a positive customer experience that will result in a positive customer mood. For example, if someone spills a glass of water on the table in the heat of the party, it is less likely to put you off than if it happens when you are already in a bad mood. In terms of shopping, this means that on some days customers are more open and in a better mood, while on other days they are more closed and less accessible. This makes the factor rather unpredictable.
Social trends
Purchases are significantly influenced by social trends, fashion, recommendations, social norms and expectations. Among these influences, there are some that are temporary for a short period of time and others that are long-lasting. For example, fashions change quickly, while social norms are more stable. The principles and trends followed by different social groups are also important, e.g. Generation Z is characterised differently and Generation Y members shop according to very different criteria.
Consumer behaviour data
Consumer behaviour data sheds light on how brands can connect with consumers. The data can be useful in areas such as product development, product management, marketing and data analytics. They can be particularly useful for businesses looking to break into unknown markets, launch a new product or service, expand their audience demographically or increase engagement.
Let's see what consumer data can be used for!
Product recommendations: based on consumer behaviour data, products can be recommended according to interest.
Content personalisation: provide consumers with content that they are genuinely interested in.
Customer retention: with this data, companies can develop strategies to reduce churn.
Customer value prediction: customer data can be used to identify important users who should be prioritised.
Content optimisation: data can be used to optimise campaigns, timing and content.
User data may be different. For example, there are demographic data, data on availability, attitudinal data, data describing interactions. It's a matter of platform and setting what the company wants and can measure, but in fact you can collect consumer data at any point.
Audience data provides information about the target audience, and behavioural data provides information about what patterns of behaviour consumers follow. Collecting data on consumer behaviour can be done in several ways. Websites, mobile apps, customer services, CRM systems, but also market research and surveys can be useful. Data can be collected, for example, through various analytics solutions and surveys.
There are also modern solutions that allow brands to access data describing the customer journey. One of the huge advantages of retail media is just that! It means that retailers can open up the platforms they own to advertisers and brands, who can then reach their audience directly at the buying process. The effectiveness of this method lies in the timing and the fact that retailers can share valuable data with brands about their consumers.
Consumer behaviour data is collected in databases that can then be analysed. The first step in the analysis is segmentation based on specific criteria. Then, the behaviour of customers is analysed at each stage of the customer journey. This will give a clear picture of the impact at which point the visitor is affected.
Inhabitad's role in getting to know consumers
Inhabitad offers a retail media solution, a software that can benefit retailers, brands and consumers. Retailers can integrate Inhabitad's system into their webshop to offer advertising space and display for brands.
The data generated on the retailer's side is continuously collected and analysed, showing the path shoppers take, their habits, their preferences, the products they like, the products they buy together with, etc. This highly valuable information can be passed on by retailers to brands, who can then further improve their offers and messages.
Learn about Inhabitad's solution!
