Have you ever felt that way, “They say marketing is important, but where should I start?” In the field of ad technology, where technology is developing day by day,
digital marketing
that utilizes “behavioral data” has been established as one method.
What exactly is behavioral data? With the spread of smartphones, it has become possible to collect GPS location information for individuals, location IP information for companies, and information on the actions of users not only on their own websites but also on the Internet as a whole. This includes travel information.
Here, we will analyze important points from actual examples of promotional marketing around the world based on behavioral data, and introduce them as practical know-how in an easy-to-understand manner!
Changes in customer behavior and dissemination of behavioral data
The behavioral data mentioned here can basically be divided into online (web) and offline (real). Due to the recent rise in internet usage and the spread of smartphones, customer behavior has become more complex, and there is a tendency for customers to go back and forth between the web and the real world, from purchase considerations to decision-making.
The development of IoT and big data analysis has made it possible to visualize customer behavior and the entire process leading up to purchase, making it possible to understand and approach customers more deeply. By being able to visualize complex customer behavior as data, it becomes possible to design more accurate marketing strategies and communicate at the optimal place and timing to meet customer needs.
Before the spread of smartphones and SNS, mass media advertising and PR was the main way to increase awareness and improve brand image using TV commercials, etc. Users searched for products on the Web and then purchased them.
Nowadays, with the widespread use of smartphones and SNS, the purchasing process has changed from a simple flow to a more complex one, with the intervention of reviews from friends, acquaintances, and third parties. Therefore, traditional marketing is no longer sufficient.
We have now entered an era where it is possible to collect behavioral data. Web browsing history, purchase history, GPS location information obtained from smartphones, SNS behavior history, etc. can now be collected as behavioral data. By utilizing this behavioral data, you can develop more detailed marketing measures than ever before that respond to the increasingly complex purchasing process.
Exploring the purchasing process of users by analyzing behavioral data is a valuable tool for understanding the purchasing process from potential customers in the “awareness,” “interest/concern,” and “comparison/consideration” stages to high-quality customers who have “repeat” or “become fans.” Effective with a continuous approach.
Behavioral data is extremely important for companies engaged in digital marketing, which collect and analyze a variety of online data, such as user behavior history and purchase data, and conduct marketing appropriate to that data.
What is behavioral data?
Behavioral data is one type of customer data. Customer data refers to data held by companies regarding customer attributes and customer behavior.
Let’s look at it in detail.
Attribute data:
gender, age, family composition, family composition, occupation, hobbies and preferences, etc.
Behavioral data
Web browsing history, purchase history (number of views, length of stay, purchased products, purchase amount), SNS behavior history, GPS (location information), etc.
In the days when it was not possible to visualize or obtain behavioral data, marketing had no choice but to consider and implement measures that relied solely on attributes such as “female, 20s, resident of Aichi prefecture, married, no children.”
As a result, it was only a matter of guessing what kind of consideration and comparison process a customer goes through before making a purchase or decision, and it was difficult to identify issues with approach methods and customer touchpoints.
Since it has become possible to utilize behavioral data, we have been able to understand when and what kind of web information customers obtain, what actions they take, how many customers have similar behavior patterns, and the approach they are taking. It is now possible to analyze and implement improvement measures based on behavioral data, such as how people reacted to certain situations.
The importance of marketing based on behavioral data
Visualize increasingly complex customer behavior
In the past, promotions in mass media such as newspapers and television could be widely recognized and lead to the purchase of products and services. However, in modern times, smartphones have become widespread, and people have come to value and refer to third-party evaluations such as word of mouth, and to compare and consider several products and services before purchasing. In recent years, customer behavior leading up to purchase decisions has become more complex.
Behavioral data analysis is used to visualize customer behavior, which has become complex in this way.
For example, if it is difficult to identify or extract good customers, by analyzing and utilizing behavioral data to understand the flow of customers to purchase, it is possible to find out things such as “who purchased what products.” . By analyzing customer behavior, it becomes possible to consider and implement new measures.
Able to consider and implement appropriate measures
By visualizing customer behavior as data, you can implement appropriate measures based on data rather than guessing about specific issues.
For example, let’s say you want to analyze behavioral data to find out, “Do people who purchase a certain product repeat the purchase?” It turned out that from the second time onwards, they purchased other similar products that were a step above. It is possible to know as a fact that there are many customers who place importance on “quality,” and based on this data, the company can increase the number of high-quality products and recommend similar high-quality products to customers who have purchased a specific product. can be carried out.
In addition, there are many cases where the target setting is set to the wrong group, which is different from the group that actually has the needs, and the target is mistaken.
Even in these cases, by analyzing and utilizing behavioral data, you will be able to set accurate targets based on the data.
Accurate analysis and implementation of measures possible
Collecting behavioral data allows for accurate analysis and implementation of measures.
For example, if your e-commerce site’s sales are decreasing, you need to check the situation correctly.
When it is confirmed from behavioral data that “people are visiting pages” and “the exit rate is high,” it is possible to think that there is a problem with the website’s flow design and that improvements are needed. can.
Additionally, behavioral data can be used to improve the user experience and UX (the experience that users get through the product), and to collect further behavioral data. When considering the causes of a high withdrawal rate, you will be able to understand the specific situation of your customers, and you will be able to consider and implement the correct measures.
How to collect behavioral data
There are various methods of collecting behavioral data, but a common method is to use cookie information from users who visit a website.
Cookie information is a mechanism that temporarily stores information such as the number of visits and ID of a website visitor. This technology is used in situations such as “returning users to remain logged in even if they move to another website” by recording IDs and browsing information for the purpose of user identification.
Cookie information is information that is temporarily stored on your personal device (computer or smartphone) by the website you visit, and if used correctly, it can make your browsing experience more comfortable. However, the content is technology that records actions taken by users and is also personal information.
If a company uses cookie information, it is possible to collect information about which websites users who visited their website have visited so far, and which websites they will visit in the future.
Additionally, by linking that information to a user’s IP
address
, it is technically possible to see the current behavior of a particular user.
However, in recent years, the movement towards cookie regulations has been accelerating from the perspective of protecting personal information.
Currently, Google and other organizations are also considering technologies to replace cookies.
Other behavioral data includes content posted on SNS. By collecting information about what kind of messages and reactions the user is making on SNS, you can learn about the user’s interests.
Additionally, GPS location information falls under real behavioral data. When using an app on your smartphone, have you ever clicked “OK” when the permission request “Are you sure you want to send your location information?” appears? This kind of location information is collected by the companies providing the apps and used as behavioral data.
Let’s say you want to use the navigation function provided by Google Maps with a smartphone app. Then, GPS location information is accumulated on Google’s side, and Google uses this information for functions such as finding the most efficient route for users to reach their destination.
Utilization of current behavioral data
There are many benefits to being able to utilize behavioral data, but companies that are actually able to utilize it are only those who have specialized knowledge such as data scientists on staff. This is because behavioral data covers all customers and their actions, and the amount of data handled is enormous and difficult to interpret.
In order to handle behavioral data, you need the ability to decipher the background information from the obtained numbers and visualize the customer’s behavior from there, up to the point of purchase. However, it is not easy to prepare data scientists with this kind of knowledge. In that case, you may be able to resolve the issue by using an external service or introducing an analysis tool.
Find potential customers from SNS
From “SNS data”, you can obtain information such as what kind of person tweeted and researched what. You can find potential customers by utilizing SNS data.
Optimal approach in DM that analyzes and utilizes web behavior data
“Web behavior data” is data collected about users’ web browsing behavior. Specifically, you can obtain the title of the page viewed by the customer and the URL accessed.
Utilizing web behavior data can provide clues for considering and implementing marketing measures tailored to each customer and improving products.
Understand purchasing demographics from purchasing data and implement effective measures
Behavioral data provides purchase data such as who purchased what, when and where. From this purchase data, you can get a more specific understanding of the purchasing demographic, which can lead to the next measures.
Points to note when using behavioral data
Utilizing behavioral data has become an essential part of digital marketing. However, providing the best information to users is not an easy task.
Even if a user’s needs are discovered from behavioral data and a certain product is displayed as a recommendation, the user may not like it and may not end up purchasing it. What we can learn from behavioral data may be beyond speculation. In order to implement measures based on the accumulation of behavioral data, it is necessary to have the ability to decipher background information from numbers and visualize customer behavior from there, such as the data scientist mentioned above, as well as marketing skills. Skills that allow you to formulate future prospects as strategies are required.
summary
When it becomes possible to utilize behavioral data, it can lead to a deeper understanding of customers. Therefore, behavioral data analysis has become indispensable for companies engaged in digital marketing, which collects and analyzes various online data such as user behavior history and purchase data, and conducts marketing appropriate to that data. Ta.
By accumulating and analyzing data, we will be able to plan communication measures with the optimal timing and content to meet customer needs. In addition, by linking data to measures, it can be used for all marketing measures.
With marketing based on behavioral data, you can learn about customer trends and promote efficient branding.