Consumer behaviour: how to conduct analysis and tailor your marketing strategy
Learn about the four most important types of consumer behaviour and how to tailor your marketing strategy and website to them.
Let’s assume for a moment you run an online shop selling clothing. You’ve just launched a new collection, but instead of filling their carts with your stylish new designs, many customers leave your website without purchasing anything.
Meanwhile, at a competitor’s store that offers a similar collection, clothing and accessories are flying off the digital shelves. Why does this happen? The answer often has a lot to do with consumer behaviour.
For all businesses, whether online or in physical shops on wind-swept streets in Leeds, consumer behaviour plays a crucial role in customers’ decision-making processes. This affects everything from how they find your website to whether they make a purchase or move on and forget about their abandoned cart.
In this guide, we’ll cover the four types of consumer behaviour, how to conduct a consumer behaviour analysis, and how to adapt your marketing strategy accordingly.
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What is consumer behaviour?
The term consumer behaviour describes how consumers think, act, and make decisions when considering a purchase.
For you as a business owner, understanding the thought processes behind your potential customers’ purchasing decisions means you’ll be better equipped to tailor your marketing, website, and product offerings to them.
Factors influencing consumer behaviour
- User experience: Loading times, delivery options, payment methods, and site navigation are critical for online shoppers.
- Cultural factors: Values, traditions, and social norms influence consumer decisions.
- Social influence: Recommendations from friends, family, or online reviews often affect purchasing decisions.
- Personal aspects: Age, income, lifestyle, and hobbies play a role.
- Psychological factors: Emotions, perceptions, and brand loyalty can influence choices.
- Economics: A customer’s budget and perception of a product’s value are important.
Differences between B2C and B2B consumer behaviour
There are several differences in consumer behaviour between B2C and B2B customers. Here are the most significant:
- B2C: Buying decisions are often influenced by emotions and are typically more impulsive. For example, a customer might buy an eco-friendly water bottle after reading an article about the harmful effects of plastic or seeing a storytelling-based ad that resonates with their personal priorities.
- B2B: B2B customers usually make more strategic decisions based on prior research. For example, a small design agency might choose a subscription for specific accounting software after comparing prices, features, and reviews of different suppliers.
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Consumer behaviour and sales – what’s the connection?
Whether you have an online business or a physical shop, consumer behaviour determines your conversion rates and sales figures, with your website playing a vital role.
If you’re a sole trader offering personal training sessions, a user-friendly online booking system that makes setting an appointment quick and easy can increase the likelihood of repeat bookings. Conversely, if the booking process is complicated or time-consuming, it can negatively affect potential customers’ purchasing decisions, leading to fewer bookings and lower revenue.
Small changes, such as improving your website’s speed or navigation, can make a big difference and have a positive impact on sales figures over time.
The 4 most important types of consumer behaviour
1. Complex consumer behaviour
The customer’s purchasing decision is strategic and influenced by their perception of differences between various brands and companies.
For example, when choosing a subscription for a cleaning service, they will typically compare included services, benefits, reviews, and prices before deciding. This type of consumer behaviour is often seen in B2B consumers but it’s not exclusive to them.
2. Dissonance-reducing consumer behaviour
The customer thinks carefully before deciding, but they struggle to identify clear differences between companies. This could lead them to choose the easiest option, even if it’s not necessarily the best.
For example, a tourist looking for a good lunch spot in London might read customer feedback on TripAdvisor or Google Reviews and end up with a list of five appealing restaurants. They then choose the one closest to their hotel to avoid additional travel.
3. Habitual consumer behaviour
Here, we find customers who automatically renew their Netflix or a newspaper subscription annually without exploring alternatives. The customer is satisfied with the service they already have and doesn’t feel the need to search for other options. These customers often remain loyal to the same company for a long time, as long as they continue to have a positive and hassle-free experience.
4. Variety-seeking consumer behaviour
Customers in this category frequently try new brands simply for the sake of trying something different. For example, a customer might often buy new fitness apps to explore new features or experience a different UX design.
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How to perform a consumer behaviour analysis
Analysing your target audience will give you insight into the types of consumer behaviour present among them. The advantage of this is that it makes it easier to hit the mark with your marketing and retention strategies.
Segment your target audience
The first step in your consumer behaviour analysis is segmenting your target audience. This involves dividing them into smaller groups based on demographics (age, gender, income, etc.), psychographics (values, personality traits, etc.), and geography (country, region, city, etc.).
In your segmentation, you should also consider other factors such as preferred social media platforms, buying habits, and unique needs. Read more about how to identify and segment your target audience.
Segmentation makes it easier to identify unique needs and types of consumer behaviour within your audience, allowing you to tailor your marketing strategy accordingly.
Why do customers choose your business?
Behind every type of consumer behaviour lies a motivational factor – a reason a customer chooses to buy from you. The next step in your analysis is to discover why your existing customers choose you over your competitors.
- Customers with dissonance-reducing consumer behaviour may choose your service simply because it’s easier to book an appointment through your online booking system than to call your competitor, who only accepts bookings over the phone.
- Customers exhibiting complex consumer behaviour are more likely to choose your business because your package deals fit their budget or because your customer service is more responsive and accessible.
By understanding the reasons behind why customers choose you, you can improve the aspects of your business that appeal most to different types of consumer behaviour, resulting in better sales.
Collect quantitative and qualitative data
The different types of consumer behaviour often become clear when you start analysing data:
- Quantitative data: Use tools like Google Analytics to track trends and website traffic. If you run an online store, many single purchases of a trendy new item often point to variety-seeking consumer behaviour, especially if these are first-time customers who haven’t shopped with you before.
- Qualitative data: Conduct user surveys or read reviews to understand why customers choose your products or services. For instance, if you run a bakery, qualitative data might reveal that customers with habitual consumer behaviour love that you offer next-day delivery.
Meanwhile, customers who appreciate detailed ingredient lists and allergen information for each loaf of bread and cake on your website are likely demonstrating complex consumer behaviour.
By linking your collected data with information about the unique needs and preferences of your target audience segments, you can begin crafting a strategy for how best to reach each segment with your marketing.
Adapting your marketing strategy
Once you’ve completed your analysis, you can use the insights gained to improve your marketing strategy and target your efforts at different types of consumer behaviour.
Marketing tailored to complex consumer behaviour
These customers often spend time conducting thorough research and comparing options. For example, a customer looking for an online course will typically compare prices, modules, and reviews before deciding.
To target this segment, you can add detailed product descriptions to your website, offer free trials, and write blog posts comparing various solutions. This makes it easier for these customers to make an informed decision and increases the likelihood they’ll choose your business.
Optimising your website for SEO will help improve your ranking in search results, ensuring your pages appear among the top results when potential customers are comparing options online.
Marketing tailored to dissonance-reducing consumer behaviour
Customers with this type of consumer behaviour often choose a product or service because it’s convenient, especially if the differences between offerings from various companies seem minimal.
To target this segment, highlight your business’s unique selling points (USPs), such as easy online booking or exclusive discounts, so potential customers can quickly see the advantages of choosing you. If you run a restaurant, for example, you might showcase special menu packages, allergy-friendly dishes, or your sunny rooftop terrace on your website.
Marketing tailored to habitual consumer behaviour
These customers are guided more by routine than by in-depth research when making purchasing decisions. For example, there’s a high chance a customer from this segment will renew their meal kit subscription if the renewal process is simple and hassle-free.
To retain this type of customer, you could offer automatic renewal options and introduce a loyalty programme with special perks for long-term customers.
Marketing tailored to variety-seeking consumer behaviour
These customers love to try new things, making them a challenge to retain since they’re always seeking new experiences.
If you run a café, you can appeal to this segment by regularly updating your menu with exciting new coffee beans and teas not offered by competitors. Promote these updates on your website and in email campaigns, such as newsletters, to ensure variety-seeking customers don’t miss out
Consumer behaviour: keep refining your strategy
By understanding what influences your customers’ purchasing decisions and analysing how they interact with your website, you can improve your chances of creating a marketing strategy that significantly boosts sales.
As you implement your various improvements, start measuring their impact and fine-tune your approach based on the insights you gain to make your strategy even more effective. Keep an eye on customer reviews, conduct new user surveys, and dive into fresh data from tools like Google Analytics and Google Search Console to show what drives sales and what could be improved.
Every small improvement can make a noticeable difference to your revenue, whether it’s optimising your website or running marketing campaigns that highlight new additions to your product range.
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