You can use behavioral analytics to see exactly how customers use your product. This information allows you to improve continuously, adapt, mold, and create the customer experience that your product is designed to provide.
What is Behavioral Analytics?
Behavioral Analytics is the process of gathering and analyzing data from actions taken by users of digital products, such as apps or websites. This data allows companies to see how users interact with digital products and can make future improvements.
Examples of User Behaviors Relevant To Behavioral Analytics
- Registering for an account
- Complete a form
- Playing a song
- Abandoning a cart
- Subscribe to our newsletter
These behaviors are also known as events for event-based analysis. They can be used to track user preferences, intentions, habits, and other data. You can offer your customers more value if you know them better. You’ll also be able to build a loyal customer base over time.
The Key Takeaways
- Behavioral analytics is the process of tracking and analyzing user behavior to understand their needs better.
- Data from behavioral analytics can help you improve your product, meet customers and increase key performance indicators.
- Your goals will determine how you use behavioral analytics, but engagement, retention, and conversion are all essential.
Comparison of Third-Party Data and First-Party Data
Third-party data can be gathered by other companies and sold. This type of data reflects who customers and prospects are, but not what they are looking for. While you will likely have customers with similar demographics, that does not mean they’ll use your product in the same way.
Through a digital experience, behavioral analytics records each person’s unique flow. This is first-party data. You can truly understand your customers’ perceptions by using behavioral data from first-party users.
The Importance Of Behavioral Analytics For Your Business Or Brand
Behavioral analytics is designed to help you make informed business decisions and drive specific business outcomes. It is very difficult to increase high-value metrics such as retention, conversion, engagement, or other business outcomes if you don’t know what influences your customers at each stage of their customer journey.
Long-term solutions cannot be found by relying on reviews, feedback, surveys, questionnaires, and reviews. Understanding how customers interact with the digital experience and key metrics such as customer lifetime value is crucial. Customers’ actions are more important than words.
You can use data points such as bounce rates and daily active users to determine where your prospects are coming from, how long they stay, and why. Any changes to your product that you make will not be based on intuition.
If you want to place digital bets on product improvement, it is essential to understand what your customer wants. McKinsey & Company reports that organizations that leverage customer behavior insights outperform their peers by more than 85 percent in sales growth and more than 25 percent gross margin.
Behavioral analytics provides you with raw data that can be used to make hypotheses, conduct A/B tests, or confidently make changes. This continuous refinement leads to highly personalized experiences that provide value through every interaction.
What is Behavioral Analytics?
You will need to purchase a behavioral analytics tool like Amplitude’s Digital Optimization System before you can begin extracting insights from behavioral data. An analytics platform must collect user behavior from your product, a data warehouse, or CDP, and integrate it with other tools such as social media and email messaging systems. The dashboard or reporting system will allow you to visualize the behavioral data.
After collecting behavioral data, you will need to identify the business goals and other objectives you wish to reach. These goals will be specific to your company or product. However, things like retention, conversion, and engagement are almost universal to all businesses. It will be difficult to get insights from behavioral data if you don’t have short- and long-term business goals.
Your core goal should be to learn as much as you can about your customers: what they want, how they feel, and what keeps their attention. You can use tools like Amplitude to analyze the preferences and behaviors of a group. These are called behavioral cohorts.
You can identify user patterns and tendencies by looking at certain group behaviors. Segmenting customers based on certain behaviors can help you identify opportunities to improve your customer journey.
Users can be segmented based on any behavior, including skipping a song or accepting a trial offer. You can use other analytics methods such as A/B Testing or Channel Analysis to get deeper insights.
No matter how you segment your behavioral cohorts, it is important to understand a user’s motivation to do something. This will allow you to make informed business decisions.
Different types of behavioral analyses
You can perform different types of experiments, tests, and analyses once you have collected behavioral data.
A/B Experimentation
A/B testing allows you to make confident product decisions. Are you unsure about landing pages? Are you unsure if a product feature is worth the effort? Instead of relying on intuition to make changes to your product, you can use tangible data from customers to determine the best course.
You can easily make big-picture changes that will improve customer experience with the help of user behavior data.
Analyze of Funnels
Each customer’s journey to conversion offers a chance for either progress or decline. Funnel analysis allows you to look at every stage of a customer’s journey and identify any problems or confirm wins.
You’ll have more funnels to optimize and maintain as your business grows. Amplitude, a platform that allows you to see all of your funnels in one place, allows you to understand the user’s intent at each level.
Segmentation
Segmentation allows you to discover trends and patterns by comparing different groups of users over time. Your product will be more successful if it has core users familiar with it.
You can find the most valuable features of your product if you segment this audience and pay close attention to their behavior. This will allow you to incentivize users to engage with your product in the same way that your power users do.
How to Get Started with Behavioral Analytics Tools
Each business has its own challenges and expectations. Behavioral analytics can be tailored to meet your short- and longer-term goals. But, a team-wide adoption and use of behavioral analytics is key to success. Below are some examples of how you can use behavioral analytics.
Create a Cross-Functional Data Strategy
Many companies acknowledge that despite its increasing importance, they haven’t created a culture around data. Gartner states that organizations that encourage data sharing will be more successful than their peers in most business value metrics.
Each member of your business’s team can offer unique insights into how to maximize the potential value of behavioral data. Your data strategy should reflect the combined expertise of all departments. What metrics and goals should we be tracking and why? What data will be used to improve the product? Are our technology stacks capable of achieving our goals?
Multiple teams can approach these questions: marketing, product, IT, analysts, customer support, and c-suite. It is equally important to prioritize data democracy once goals have been set. This allows multiple teams to access your data, leading to a better product and improved business outcomes.
You can train your team by investing in a platform
Your goals, budget, and maturity are key factors in choosing the right analytics platform. There are many platforms out there, but not all of them are the same. It is important to choose a platform that suits your needs. Some platforms are easier to use than others.
Amplitude’s Digital Optimization System gives you a comprehensive overview of how customers interact with your product. Amplitude uses behavioral data collected from all digital touchpoints to create user-friendly dashboards that allow you to run experiments, analyze funnels and test new features, tailor marketing campaigns, and much more. Amplitude offers knowledge databases, training courses, and webinars for training your team.
You can also look at these analytics tools:
You can learn more about these tools by visiting a site like G2.
Connect your platform to your product and other tools
While your product is likely to provide most of your behavioral data for you, there may be other data sources that can also be integrated into your analytics platform. A Facebook Ads integration, for example, can help you leverage your product data to create custom audiences and give you more personalized options.
Braze allows you to automate your marketing efforts and engage users via multiple channels. Braze can be integrated into your behavioral analytics platform for greater productivity, customization, flexibility, and efficiency.