Consumer behavior analysis is the study of why a consumer acts a certain way or purchases one product over another. Many companies engage in this analysis in order to strengthen market share and improve profits. The best tips for consumer behavior analysis include setting a specific goal, picking an effective behavior analysis tool, creating a proper review process, and acting on the results. Companies can either use their own personnel for this process or hire a consulting firm. In some cases, companies can outsource the entire behavior analysis process.
Like any business activity, consumer behavior analysis must have a goal. Questions to answer may be who buys a specific product, how they buy products, when and where they buy products, and others. Companies usually create specific questions that need answers. Input from a company’s marketing team or sales department is often helpful when creating these questions. The questions will lead to the ultimate goal for the analysis process.
Many types of consumer behavior analysis tools are available to companies. Common tools include surveys, focus groups, field reporting, and other methods. Technology allows companies to use electronic surveys that are often quicker and easier to process. Companies can also use different technology to gather information from the other analysis tools. These tools reflect the questions created in the planning stage, with the intent to gather requisite information for analysis.
Gathering information is simply not good enough for consumer behavior analysis. Companies must find ways to properly review and assess the gathered information. Most data collected need some type of work to create usable reports and information. A company’s staff often selects information and places it in a proper format for review by management teams. Multiple reports may be necessary to provide specific information for different departments or individuals.
Once a company has gathered information and created usable reports, it must decide how to act on the data. For example, if the data points to a specific marketing plan that was effective in driving consumer sales, a company may need to determine if another, similar advertising campaign is necessary again. Other times, the data may lead to declining sales or market share. Companies need to act on this data to reverse course in order to maintain profits. In short, companies must use the data to improve operations in order to not waste the money used for the entire consumer behavior analysis process.