As marketing trends change rapidly online, businesses must meet their customers' needs to ensure their business growth. It means going beyond addressing customer needs but, most importantly, adapting to the emerging trends in the market, understanding the fast-paced consumer demands and preferences, and continually finding opportunities to engage customers.
To ensure consumer engagement is well-optimized, marketers need to understand consumer buying behavior, decision-making, and other psychological factors influencing their purchase activities. Now, wouldn't it be nice to know your customers well?
In this article, we will explore and understand consumer behavior and use it effectively to influence customer buying decisions.
What is Consumer Behavior?
Consumer behavior is a combination of any of the following meanings:
the buying habits, social media trends and frequency of patterns in the consumers purchasing activities.
It doesn't describe who is shopping but how customers are shopping in the business.
It is also the study of consumers' needs and wants
Lastly, consumer behavior touches on analyzing personality factors on how consumers feel about your brand, your product, and the factors that motivate these customers to choose your brand over others.
An exciting part of consumer behavior is that it puts weight on businesses to research and understand their target market and buying behaviors. When consumers embark on their purchasing journey, there are certain behaviors that customers exhibit. These behaviors can be guided or influenced, especially in how businesses market their product or services.
Why is Consumer Behavior important?
Consumer behavior goes beyond knowing the customer's preferences and needs. With data gathered from this consumer behavior, it enables companies to:
Enhance marketing and communication- understanding consumer behavior enables businesses to enhance their marketing and how they communicate their brand message to the customers.
Increase consumer retention. Consumer behavior helps businesses pinpoint growth opportunities and develop effective strategies to increase customer retention. It also opens a way to identify problems that can impact their business presence and delivery.
Create Loyal Customers. Businesses can create a more targeted product or service that will cater to the needs of their customers. Doing this will likely increase customer satisfaction, which will increase loyalty as well.
Predict consumer trends. Understanding consumer behavior is a crucial part of business operations. It allows businesses to make well-informed marketing strategies to operate their company. Understanding your consumer behavior will help them provide services and products more in line with their customer's needs, increasing sales and customer loyalty.
Stay Relevant. Using the information gathered in your consumer behavior makes it easier for businesses to interact with customers and brainstorm how to improve customer relationships.
Improve Sales. Consumer Behavior data is a valuable tool that enables businesses to increase their sales, stay relevant in the digital field, fill the market needs gap, and develop products and services that meet that customer's needs.
Innovate Services, Products, and brands. It's not enough to create a product or service to sell. As entrepreneurs, it's also crucial you understand what your customers want, how they behave, how they purchase, and the motivation they have to buy a product.
Key factors affecting Consumer Buying Decision
Many factors can influence consumer buying behavior. It can be permanent or temporary, but all affect consumer buying decisions. The following are key factors that influence consumers buying decisions:
Personal influences. This can be customers' personality traits, demographic, and characteristics.
Cognitive Influences. This includes consumers' needs, wants, mindset, perception of the business, and assumptions.
Community Influence. This influence includes but is not limited to family and friend recommendations, online reviews, conversations, comments and feedback on a business website, celebrity influence, and the need to be accepted by the community.
Situational Influence. Often, these are temporary events and fads that will decrease in popularity soon.
The Role of Marketing to Influence Consumer Buying Decision
There's no doubt that a significant factor in consumers' buying decisions is linked to how businesses market their products and services. Consumers mostly choose a product over others because of its benefits.
The need to align with marketing trends puts pressure on businesses to impress customers and influence their buying decisions. And to keep marketers on these trends, they undertake the following:
Modern consumer behavior indicates they care about the environment and want to know more about product information and ingredients. Examples of this behavior are the rising demand for cruelty-free or vegan products and sustainable packaging.
Create a Sellable Image
These days, the word 'Instagrammable' or Instagram-worthy images sells more. As a result, consumers get attracted to purchase products well packaged, advertised, and promoted well on social media.
An excellent example of the effect of a good product image is the rise of 'unboxing' user content from consumers, which they value and post on social media. This creates a free advertisement for businesses and increases their audience reach.
Promote Well-Being Benefits
With the onset of the pandemic, there was a rampant increase in mental health awareness. This also led customers to develop an interest in products and services that promote wellness and mirrors physical and psychological health. Recently, marketers touched on wellness concepts in some of their brand messaging, packaging, and even products to generate validation and positive feelings for customers.
Develop Online Communities
Aside from having your newly purchased product, consumers experience the feeling of inclusivity, knowing that others are also buying the product. This inclusivity creates a sense of community and helps customers feel validated and affiliated.
This sense of belongingness creates a platform to talk about their needs freely, wants, and expectations. In addition, developing an online community is a great way to gather reviews and business feedback to create positive developments in the business.
Understanding consumer behavior is necessary for every business. The data gathered in consumer behavior insights can help better address customer expectations of your brand and their preferences and allow companies to create strategies to attract more and retain customers. Consumer behavior is an important area in marketing that companies need to invest in since it will primarily affect business growth.
How did you find our article? Let us know what your thoughts are in the comment section below! And don't forget, if you need digital marketing for your online business,KLB Solutions is here to help!
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