Why Consumer Behavior Analysis Is So Relevant to the eCommerce business?
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Overview • What is Consumer Behavior Analysis? • How Consumer Behavior Analysis Benefits eCommerce Business • 4 Key Metrics for Measuring Consumer Behavior • Conclusion
What is Consumer Behavior Analysis?
• For any online retailer, data about the online behavior of its consumers is probably the most important business asset. •
Through behavioral data analysis, eCommerce stores can extract deeper consumer information and present a more personalized website experience to these customers.
Behavioral analysis in eCommerce can be used to categorize consumers on the 3 following behaviors, namely:
• Browsing behavior • Purchasing behavior • Email behavior
Browsing behavior
• How the online shopper is attracted to a ecommerce store? • What products do they search for on the eCommerce store? • How does a personalized landing page design influence their conversions?
Purchasing behavior
Buying patterns (example, seasonal purchases or a preference for a product category)
How shoppers respond to promotional activities like product discounting or special offers.
Email behavior •The number of business emails that were opened by consumers •The number of users who opened (or clicked) the emails •The number of emails that prompted a website visit or an online purchase
How Consumer Behavior Analysis Benefits eCommerce Business
eCommerce retailers can derive multiple benefits from the insights taken from consumer behavior analysis tools. These valuable insights can lead to a more personalized approach to customer needs that can increase their lifetime value to the business.
4 Key Metrics for Measuring Consumer Behavior
Want to understand the factors that are influencing your consumer behavior? Then monitoring these 4 key metrics can help you understand how your consumers act:
•Average Session Time •Pages per visit •Traffic flow •Customer Loyalty
Average Session Time
The average session time is a good indicator of how long consumers spend on your website. Longer session times indicate a higher likelihood that the session will end with an online purchase. On the positive note, online shoppers interested in your store tend to spend more time browsing through products, reading product reviews, and interacting with your customer support executives.
Pages per visit
This is an effective metric for analyzing customer behavior for measuring the number of pages (or content) being viewed by shoppers in every visit. Based on this metric, you can identify the most (or least) viewed website pages and work on their respective strengths and weaknesses.
Traffic flow The online traffic flow is an efficient metric in monitoring how consumers move (or navigate) through your store pages. Traffic flow can indicate the online store pages that are most attractive to shoppers. Through this data, you can design the best navigation path for shoppers to reach your most popular products or product categories.
Customer Loyalty
Whether it is through free shipping or freebies, customer loyalty is an excellent yardstick for observing customer behavior. Customer loyalty metrics can help you track the buying habits of each shopper and understand the merchandise preferred by each demographic group.
Conclusion
The role and impact of e-commerce on customer behavior is driving the industry-wide adoption of customer behavior analysis for attracting more shoppers and improving their shopping experience.