BUSINESS

How and Why to Create a Behavioural Database

We have already spoken on other occasions about the usefulness of controlling the data that concerns our company and that a behavioural database, that is, a database that collects the behaviour of customers and analyses the actions of each user, can be exploited both by an online business and by a physical store. But the problem is not in the data collection but in the operations to be carried out. What to do with them?

It is best to always bet on intelligent database management, as this can increase the average amount of the basket and improve the repeat purchase rate. It also helps meet the growing need for special treatment.

Database Diagnostics

Before starting, a database diagnosis must be made to fill in any existing gaps. Next, it is necessary to connect and consolidate the client data to create a behavioural database suitable for studying behavioural sequences.

At this point, the information must be classified through a structured architecture that can change constantly. This is the one that will define the interests of the client and will allow us to create consumer profiles, knowing that some overlap.

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The critical criteria are recency –the measure of time that has passed since the last activity or transaction was carried out and the frequency and the amount of the purchases. These three variables must be cross-referenced with socio-demographic, geographic data, etc. As well as with products, categories and/or brands acquired.

Companies can go a long way in targeting their campaigns or defining their offers. How? Establishing consumer profiles and groups is an initial step to understanding each customer segment’s key categories and references and optimising promotional strategies or considering new strategies in the marketing mix.

Solutions to Capture Information

There is an arsenal of solutions to capture behavioural data about customers. That yes, always considering that the crux is in the data aggregation, continuous enrichment and combination of the contact channels. It is not about asking for data just to ask, but about requesting those that are really valuable for our business.

The user leaves a mark on the Internet: from their browsing history and/or the consumption of certain content to other types of activity (filling in a form, updating their profile, etc.). We must associate all these signals, for which we must have the user identified. And a cookie can do the job for us. We have solutions to measure the impact of messages and reactions through email.

Outside the Internet, using loyalty cards is the best way to collect information, including the actual purchase, since each user offers a lot of information about himself regarding tastes, preferences and values. Registering this information will also be helpful to know the degree of “engagement” of our users or clients.

Our recommendation is to advance through small steps to find concrete solutions to specific situations and gradually obtain returns.

A Behavioural Database: From the Standard Profile to the Personalized Profile

A relevant behavioural database allows the brand to personalize the offer according to each type of customer. On the Internet, it is not about contextualizing an offer according to the user’s profile but about personalizing it according to their profile.

To achieve this, we must capture key indicators like browsing history or stated interests (or whatever we can deduce from how you behave online). By basing the customer experience on their previous visits, it is possible to create an apparent ‘one-to-one effect.

In this way, the brand or banner can focus its offers by identifying their behaviour and, in absolute terms, thanks to being able to anticipate their needs based on their reaction or even lack of response.

Segment to Focus the Offer on the Customer

All this tells us that it is essential that brands know their consumers and recognize and identify where they are and when they are.

To segment the customer base based on behavioural data, we must gather the critical information “for” the consumer’s interests (attitudes, lifestyle, status). Of course, this information must be constantly updated without the client feeling pressured by it. The use of behavioural databases must be reasonable. If a brand or sign goes too far in its use, its image can be counterproductive.

It is about not breaking the trust achieved. That is, to use the information only to send you promotions likely to interest you based on your visits to our store or the website or to retain your loyalty with a special offer or product, but be careful not to burn it. In fact, if we focus too much on past behaviour, the client may feel watched or harassed.

A good strategy is to give users access to the preference centre to modify their profile or choose the communications that interest them.

Relationships Change, Not Needs

However, the constant changes in users’ online behaviour show us the difficulty of identifying the current consumer.

Without stopping to observe and predict the behaviour of their customers and non-customers, companies have to change their structures and processes to continuously adapt to consumer trends through their contacts with users.

Therefore, behavioural tracking, personal data collection, enrichment, and segmentation should ultimately be aimed at better meeting customer needs and delivering a personalized experience.

Also Read: Success Stories of AI in Marketing Campaigns

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