Behavior analytics is a data-driven approach to tracking, predicting, and leveraging users’ behavior data within a digital product. It gives insights into the actions that users take such as clicks, slides, time spent, etc. within a product. This data is leveraged by modern agile marketing teams to determine what users like and don’t like to make necessary adjustments and make the product more valuable.
Behavioral data reveals how engagement with your product impacts retention, conversion, revenue, and the outcomes you most care about. Behavioral analytics is used in e-commerce, media, entertainment, food and delivery, social media, and other applications to identify opportunities to optimize the product in order to achieve specific business goals.
Importance of Behavioral Analytics:
One of the most important questions asked by every product and marketing team is “How are customers using their product?”. Behavioral analytics provides concrete answers using which teams can segment their users, run reports, and understand their customers’ needs and interests. In the absence of behavioral analytics, teams are stuck using insufficient demographic data and vanity metrics.
Steps to Successful Behavioral Analysis:
Marketing and product teams can prepare themselves to conduct user behavior analysis using these five steps:
- Identify and select goals, metrics, and KPIs
- Define the most important and critical user paths aligned with your goals
- Create the taxonomy for user events and a tracking plan
- Set user properties and event properties
- Verify user events and begin tracking