Once customer behavior is analyzed successfully, businesses can engage people more effectively. Studying consumer buying behavior leads to a greater understanding of the expectations of customers. By assessing what leads a consumer to decide on a product, a business can differentiate between the products and services that are needed, and those which are obsolete.
With the onset of the pandemic, customers have faced outages at some points in their lives. This has impacted their ‘shopping behavior’. As stated below, some crucial strategic rules need to be followed to maximize the growth of a business based on observing customer behavior.
1) Justification of value
A business should concentrate on increasing customers’ perceptions of the value of a product or service. Minute Maid’s Pulpy Orange fruit drink enhanced value perceptions by imitating the taste of pure juice. Composite products have justified their success as they offer more for less. They are multipurpose and boast multiple benefits. Olay’s Total Effects has a “seven-in-one” anti-aging formula, for example. Good marketing and good public relations strategy.
2) Follow trends
With customers increasingly embracing a global perspective which challenges traditional hierarchical systems, a business or brand should also embrace inclusiveness. A brand should be promoted or publicized in a manner that shows it is making an effort to break stereotypes and embrace people in the real world. For example, Suntory had introduced its black oolong tea in Southeast Asia as a post meal drink and antidote to greasy food. It had ingredients that slowed fat absorption.
3) Relevant marketing programs
Effective marketing campaigns have to speak specifically to groups of consumers based on their behavior. If target customers are kids, TV ads, school programs and blogs for young mothers will lead to greater engagement. There is a widespread reaction against overindulgence in difficult times. For instance, the proliferation of Body Shop’s green cosmetics. “Feels good’ is more important than ‘tastes good’, Poultry maker Bell and Evans has witnessed an increase of 25 percent in its organic sales during the pandemic.
4) Retain consumers
For a business, it is important to retain existing customers. If customers are happy with a particular product, they will repeat the purchase. A 5 percent surge in customer retention can increase the profit of a company by 95 percent. Special discounts and offers can be used to build loyalty. It is also necessary to respond quickly to customer complaints, feedback, and questions. Polls and surveys can be used on entry and exit points to engage customers.
5) Use customer insight tools
Social media is a tool that gives insight into what customers are talking about. The focus group called Twitter Insiders has more than 12,000 consumers from various parts of the world who offer their insights on brands and businesses. In addition, you can track conversations on social media and participate when appropriate. With customers being easily seduced by razzle-dazzle a business or a brand should always aim at sending a clear message that would engage customers.