Understanding the basics of behavioral analytics: An introduction

Behavioral analytics can provide you with information about how customers use your product. You can find ways and constantly improve your product to provide the best user experience. The more you get a grasp of what your customers need, want, and look for, the better you can offer. By offering an awesome customer experience you can increase your customer loyalty and retention. Here, in this blog, we will give you behavior analytics definition and how it can help your business.

What is behavior analytics?

Behavioral analytics is the process of gathering and analyzing customer data from a digital source like an app or website. From this data, businesses can deduce how customers interacted with their products. They can see analyze customers’ digital experience and find ways to improve their decisions in the future.

Behavioral data examples

Some of the user behaviors that are relevant to behavioral analytics are as follows:

• Filling out a contact form
• Creating an account
• Playing a video
• Cart abandonment
• Taking a subscription

These behaviors are also known as events or event-based analytics. These are tracked to know the users’ interests, preferences, and buying habits. It can help you understand your customers better and provide more value to them. This way you can increase your customer retention rate and maintain sustainable revenue.

Behavioral data definition

• Behavioral data is tracked, collected, and analyzed to understand the customers better. It can help you know your customers’ needs, wants, and expectations from your product or service.
• Behavioral data can aid you in making impactful changes that increase customer satisfaction and improve key performance indicators.
• You can utilize behavioral data in accordance with your specific business goals. However, it can help you in increasing some of the universally essential goals like engagement, conversions, and retention.

First-Party Data vs. Third-Party Data

Behavioral analytics is about capturing every individual’s data through digital sources directly by a company. This is known as first-party data. From first-party data, you can understand who your users are and how they perceive your product or service.

Third-party data is collected by other companies and sold. Through third-party data, you can know who your customers are but not why they do what they do. You can get information like age, location, occupation, and other demographic data. You can get the sets of data based on similar demographics but this doesn’t mean those users use your product similarly.

How can behavioral analytics help improve your business or brand?

Behavioral analytics can help you to make data-driven decisions that drive business growth. You can focus on important metrics like engagement, conversion, and retention. You can identify the factors that affect the customers’ behavior at every stage of the buying journey.

You can’t always be dependent on surveys, reviews, and customer feedback to know what your users want. Customers’ actions can tell you a lot more than just their opinions. By utilizing cohort analysis you can know what are the factors that make customers take that final action.

Metrics like daily active users and bounce rates can help you know from where your customers come and how long they stay. However, they can’t aid you in knowing the intent and motivation that drives users to your product. Any changes that you make would be based on guesswork and assumption.

To make significant product improvements it’s necessary that you use customers’ behavioral analytics. As per the statistics by McKinsey & Company, “Organizations that utilize customer behavioral insights outperform peers by 85% in sales growth and more than 25% in gross margin.”

Behavioral analytics provide you with data insights that can help you to form hypotheses. You can conduct A/B testing and make alterations that drive results. This constant cycle of modification can help you to provide awesome user experiences.

How does behavioral analytics work?

To collect behavioral analytics data, you need to invest in an analytics solution like WebMaxy Analyzer. It can help you to gather customers’ data and insights from your website. You can record your website visitors’ sessions and see how they interact & engage with your website. You can see how they navigate and the website sections where they pay the most attention.

The heat maps can provide you with graphical representations of your users’ clicks and tap on your website. You can know which CTAs and website elements people are clicking on. The scroll maps can reveal how many visitors are scrolling down on your website. Once you’ve gathered the customers’ behavioral data, you should determine your key business goals. Set your long-term & short-term business goals and draw insights from behavioral data accordingly.

The main aim of utilizing behavioral analytics is to understand what customers want, what they don’t want, and what makes them stay with your business in the long haul. You can get these answers with the help of an analytics tool like WebMaxy Analyzer. You can identify the behavioral patterns and trends of your different groups of users. You can segment the users based on their behavioral traits and identify their tendencies.

By leveraging funnel analysis, you can analyze your individual customer journey. You can know at which step most of the users are leaving your funnel. You can extract deeper insights to make significant changes that improve your conversions and retention rates.

Different types of behavioral data analysis

With behavioral data, you can run different types of tests, experiments, and analyses based on your business goals. WebMaxy Analyzer is a user behavior analytics tool that can aid you in conducting the analysis given below.

Funnel analysis

When a prospect enters the buying journey, it’s not necessary that they end up converting. Funnel analysis enables you to know what happens at every stage of the funnel. You can know the conversions and drop-off rate. This can help you to identify the pain points and fix them to create the best experiences.

As your business grows, you’ll have more conversion funnels. WebMaxy Analyzer is an analytics platform that allows you to create as many funnels as you want. This way you can identify your user intent at every level and target them more effectively.

Funnel Analysis: Identifying Key Conversion Points in a User Journey

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A/B experimentation

You can make the right product decisions based on the users’ behavior. For example, you want to redesign your website. You can watch session recordings and set heatmaps to understand your customers’ engagement. You can analyze where the prospects are clicking, tapping, and how they’re navigating through your website. Based on their activity and engagement, you can re-design your website.

Once you’ve redesigned your website, you can again record your users’ sessions and set heatmaps. You can see how the visitors are responding to your new website compared to the previous one. You can know if your recent changes are making any difference in the customer experience.

Segmentation

You can segment your customers based on different demographics. You can analyze these distinct groups and see how they interact with your website. Identify their behavioral patterns & trends, and find ways to tackle their pain points in the most effective ways.

By comprehending users’ behavior you can know the best features of your product. This information can help you in marketing your product better in the market. You can identify ways to engage your prospects and drive new customers.

How to start using behavioral analytics tools?

Every company has its own challenges and business objectives- the way you utilize behavioral analytics is specific to your short and long-term goals. However, adopting a data-driven approach will help you to take steps toward success even if it takes time. Here, we have given a few steps that you must follow to start utilizing behavioral analytics for your business.

Establish data democratization

Most companies say that they haven’t built a cross-functional data-sharing culture despite its importance. According to a report by Gartner, “By 2023, companies that promote data sharing will perform better than their peers on most business value metrics.”

Each and every team within a company can have a unique perspective on how to utilize behavioral data. By taking ideas from different departments and teams, you can create a well-thought-of data strategy. You can decide the goals and metrics that you should track & why?

You can find ways to improve your product significantly. By taking into consideration your different teams’ opinions like product, marketing, IT, analysts, and customer support, you can create the best customer experiences. Prioritize data democracy so that your different teams have access to data and you get enhanced business results.

Choose the right analytics platform

Finding an analytics platform for your business depends on different factors like goals, objectives, and budget. Nowadays, there are many analytics platforms available in the market but you should choose a platform that meets your criteria.

For example, WebMaxy Analyzer is a user behavior analytics platform that comes with a wide range of features. It has session replays, heatmaps, surveys & polls, feedback, funnel view, form analytics, user insights, push notification, block IP, etc. This tool can help you understand your customers’ needs, wants, and pain points through their actions. You can know the reason why customers behave the way they do.

Integrate the analytics platform with your product and other tools

First, integrate the snippet of code of WebMaxy Analyzer to the backend of your website. It will start extracting user behavioral data from there. You can integrate WebMaxy with many other tools to increase its effectiveness like Shopify, Instapage, Hubspot, WordPress, Magento, Drupal, Wix, Google Tag Manager, Kajabi, Joomla, and many more.

Wrapping it up

Behavioral analytics can help you understand your customers’ behavioral patterns and trends. You can know how customers perceive your brand and what triggers them to take action or leave. WebMaxy Analyzer is a user behavior analytics tool that can help you get a 360-degree view of your customers. You can know their needs, wants, pain points, and issues they might be facing with your product.

This tool has live session recordings, click & scroll maps, funnel view, form analytics, surveys & feedback, user insights, push notifications, segmentation, and much more. To learn more about WebMaxy Analyzer, connect with our experts on call or email us at [email protected].

Behavioral Analytics: Understanding Human Behavior Through Data Analysis

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