Behavioral Analytics

Behavioral analytics is the process of collecting and analyzing data from actions performed by users when they visit the digital product or service, such as an app or website. The method of tracking and analyzing user behavior in order to better understand what the users want from the product or service you cater is called behavioral analytics. With the collected data, companies can have idea about how users interacted with the digital experience, and make decisions about how to improve digital products in the future. Data generated from behavioral analytics can be used to improve your product, satisfy customers, and boost key performance indicators.

Examples of User Behaviors Relevant to Behavioral Analytics

  • Creating an online account
  • Filling out a form
  • Visiting Webpages
  • Purchasing a subscription

These behaviors, alternatively events (for event-based analytics) are being tracked in order to expose user preferences, intentions, and habits. The better you understand your customers, the more value you’ll be able to offer them.

Key Features

  • Behavioral analytics actually tracks and analyze user behavior in order to better understand what they want from your product or service.
  • Behavioral analytics generates data which can be used to improve your product, satisfy customers, and boost key performance indicators.

Third-Party Data vs. First-Party Data

Third-party data is accumulated by other companies and then sold to product or service companies. This kind of data shows details of prospects and customers except what they want. Age, occupation, contact numbers, addresses are examples of third-party demographic data. Through a digital experience, Behavioral analytics captures each individual’s unique actions. This is known as first-party data. Through first-party, behavioral data, you can develop a reliable understanding of how users truly perceive your product.

The Importance of Behavioral Analytics for Your Business or Brand

Behavioral analytics aims to empower you to make learned decisions that drive specific business outcomes for your company. Customer retention and engagement is extremely difficult if you have no idea about what’s influencing your customers at every stage of the customer journey. Only surveys, questionnaires, review, and feedback is not a viable long-term solution.

Data points like daily active users and bounce rates can help you determine where prospects come from and how long they stay but not necessarily why they choose your product. Without knowing the intention and motivation of your customers, any changes you make to your product will be based on intuition.

Behavioral analytics provides raw data that can be used to form hypotheses, conduct A/B testing (also known as split testing or bucket testing) which is a method of comparing two versions of a webpage or app against each other to determine which one performs better. This constant refinement is what leads to highly personalized experiences that deliver value through every interaction and feature.

How Does Behavioral Analytics Work?

You will need to opt for behavioral analytics solution after that you can start extracting insights from your behavioral data. The analytics platform collects user behaviors from your product as well as integrates with tool like email messaging systems. You can only then visualize the behavioral data through a dashboard or reporting system. After accumulation of behavioral data you will need to set specific business goals and objectives which you desire to achieve. If you don’t have specific short-term and long-term business goals, it will be much harder to draw insights from your behavioral data.