Behavior analytics helps you to understand how people react and take action when using digital products like online games, web and mobile applications, e-commerce sites, and the Internet of Things.
These types of analytics are interesting marketing awareness tools that give insight into how users respond to certain online platforms. This raw data is aggregated and organized into a timeline that reflects commonalities in user behavior.
What Are Behavior Analytics?
Behavior analytics are generated from user activity when they navigate around a website, engage in an app, or click or swipe on an image or a link. Companies behind these platforms use the raw event data to understand common behaviors among users.
Why Does It Matter?
User behavior analytics is important data for companies and marketing firms to use to improve user experience and processes. It matters because the data can help improve the marketing experience and increase conversions and profits for businesses.
When user analytics are in place, and processes are improved based on user experience or the user journey, websites get a better idea of future trends and increase sales, mobile apps can get more downloads and usage, users will play games and engage for longer periods.
This data also matters to businesses that set up sales funnels because they can better track where their users are in the sales process and improve marketing measures to increase conversions.
What Does It Affect?
Businesses and marketing firms can look at user analytics, analyze the data and determine which behaviors lead to conversions and customer retention.
They can make small changes in the way the funnel is structured, copy is worded on websites, images are sized in the app, to see what differences they make to user activity and behavior.
How Is It Implemented?
There are several steps involved in implementing an analytics program. The first step is to create a tracking plan. The tracking plan assigns a unique identifier for users along with event properties that track user activities along with the events they perform. For example, when a user opens an email and clicks on a sale invitation link, this is tracked by the software and an event is created around that action. The software then searches for and compares similar activities.
Once the tracking plan has been created, marketing firms and companies can install the analytics software program and use its API (application program interface) or SDK (software development kit) to make it compatible and integrate it with their products and services.
When and Why Did Companies Start Using It?
Amazon was a pioneer company in implementing the use of behavior analytics for the giant’s e-commerce site back in 2005. Google was another company benefiting from the software when it released its line of home voice products.
With so many potential customers online, businesses started to seize the opportunity to aggregate and analyze user data to gain insight into trends, buyer behaviors, and ultimately how to make more money.
Today, e-commerce and retain based websites use these analytics to improve product recommendations and predict future sales activities based on past user data for seasonal sales and year around incentives.
The online gaming industry also invests heavily in user data to improve existing games for better user experience and to create more value in games under development.
Companies with mobile apps use the information to get more users interested in their app and increase engagement rates. They also use it to forecast future events based on current usage patterns and behaviors.
Finally, cyber security companies use this data to detect incidents of potential fraud activity. Based on past user behaviors, they can pinpoint high-risk activity and prevent data leaks and other harmful online hacks.
How Can It Help a Fast Growing Company?
Fast-growing companies need to be able to keep up the momentum of sales and conversions. By having user behavior analytics data, the business can track past successes to forecast future wins.
They can also benefit from finding ways to improve user experience overall and in certain areas where they may be lacking to increase sales and conversions.
In essence, behavior analytics software can benefit businesses and marketing firms online because the data gives many clear indications of the user journey. This is important because when you understand customer behavior you can give the user the best possible experience to get the best possible results.