What Is Behavior Analytics? How to Track and Analyze User Behavior

Have you ever wondered why customers make the decisions they do? There’s a whole science devoted to that, and it’s known as behavior analytics. The definition of behavior analytics, as it applies to the business world, is analyzing patterns and activities to understand the how, when and why behind a customer’s actions.¹

As you might imagine, insightful behavior analytics can be quite valuable. They can help businesses develop more effective marketing campaigns, improve their customer service and identify areas for process improvements.

This article will explain behavior analytics and how they’re applied in different business scenarios.

Chances are you’ve scrolled through social media and seen an ad appear for a site you recently visited. You might have crossed it off as a random occurrence, but it probably wasn’t. Many companies use a behavior tracking system to monitor consumer behavior across websites and apps. Gathering user activity helps companies optimize their ad spend, so they can target the consumers who are most likely to revisit their brand.

Behavior analytics software has other applications, too. Companies might use it to identify high- or under-performing pages on their website, track customer sentiment and better understand the traits of their audience. All of this information helps organizations cater to the needs and interests of their customer base.

What kinds of benefits do behavior analytics tools provide?

A major benefit of behavior analytics is a vastly improved customer experience. With the right tools, it’s much easier to tailor your website or app to a client’s interests. As an example, consider Amazon. Its algorithm shows products based on your previous searches and purchases. If you plan on buying something you recently viewed on Amazon, it will likely appear in your feed when you log into your account.

Behavior tracking tools help businesses understand what drives a customer to their products. Your software might highlight a customer’s searches or app interactions. That information can tell you a lot about their motives, and you can use it to position your products as a solution.

Business intelligence and analytics tools offer clear insights into users’ actions and interests. You can use the data to make evidence-based decisions.

The most common behavior analytics services are Google Analytics, Mixpanel and Hotjar. Each one offers different benefits and use cases. Google Analytics is helpful for reviewing users’ interactions with your website, while Mixpanel can track a user’s activity on an app.^2,3 Hotjar provides heat maps showing where customers spend the most time on your website.⁴

Most businesses use different metrics to analyze user activity. Here are some examples:

• Clicks: Show what links a user clicks on your website
• Session duration: Highlights the total amount of time spent on a website or app
• Bounce rate: Indicates how quickly a customer leaves a webpage
  

Behavior analytics tools contain built-in metrics you can review. Some software programs also provide custom options for you to create metrics specifically for your brand.

There are several ways to analyze user behavior. The method you use may depend on your objectives and behavior tracking software.

Some platforms provide insights into your customers’ demographics, locations, and devices used. These details can help you better understand who’s visiting your website or app and where they’re from. You can then use these details to target similar users through segmented marketing campaigns.

As you gather more historical data, you might see patterns and trends emerge. For instance, perhaps you notice a high percentage of customers are leaving when they have to create an account to purchase something. That information might lead you to make account creation optional, so you don’t lose as many customers.

Predictive analytics incorporate machine learning algorithms, which make it possible to review massive amounts of data and predict a customer’s potential behavior based on their previous interactions.

How do businesses incorporate behavior analytics tools to their benefit? There are several ways. 

Customers might scroll right past an email, social media post, or ad that doesn’t appeal to them. Marketers know that. Behavior software helps categorize clients by demographics, interests and other traits, so organizations can personalize their marketing materials.

Slight modifications that improve the ease of use may encourage customers to make a purchase or spend more time on a website or app. Something as simple as making a call-to-action (CTA) button larger may improve your conversion rates.

It takes a lot of effort to win a new customer. That’s why many companies use retention strategies to enhance their loyalty. Behavior tracking tools can highlight what customers appreciate most, so marketers can push those benefits and secure more revenue.

Despite all the benefits of behavior data tracking software, there are a few limitations. Several major regulations exist to protect customers’ privacy. The European Union’s General Data Protection Regulation (GDPR), for example, applies to any business that collects online data on European residents.5 It aims to minimize data collection to only specified purposes.⁵

California has a similar law, known as the California Consumer Privacy Act (CCPA).⁶ Violating privacy regulations can be costly, so all marketers need to understand the rules.

Another challenge is accuracy. There’s an old finance saying: garbage in, garbage out (GIGO). If the data used for your behavior analytics contains errors, it could lead to poor marketing outcomes. Organizations often gather data from various sources that are disconnected or not analyzed collectively, which can lead to fragmented data and limit the ability to gain meaningful insights into customer behavior. Even when data is successfully integrated, analyzing complex datasets and extracting meaningful patterns requires specialized skills that may be lacking internally. To overcome this, businesses need to adopt integration strategies and technologies that promote seamless data flow across systems and departments, and upskill their teams in data analysis and interpretation.⁷

Behavior analytics are a critical part of marketing. Without the right data, it’s tough for companies to make informed decisions in their marketing campaigns and customer retention strategies.

William & Mary’s Online Master of Science in Marketing will prepare you for a dynamic career in digital and traditional marketing. You’ll learn how to use behavior analytics as a competitive advantage in your marketing campaigns. Our program’s part-time coursework is ideal for busy students looking for a world-class marketing education.

To learn more about the application requirements and tuition, schedule a call with an admissions outreach advisor.