Using Consumer Behavior Research

What science can tell you that might help predict future sales growth.

There's an expression that past behavior is often the best predictor of future behavior. That's the idea companies are banking on when conducting consumer behavior research. By tracking past purchases and returns, businesses hope to predict what products and services consumers want.

Consumer behavior research can help your company in the following ways:

1. It builds predictability into marketing strategies.
2. It helps eliminate tactics that aren't working.
3. It enables companies to make their promotions more customer-specific, thereby increasing the chances of repeat purchases.

 

Study what others have done

Know as "secondary research," companies can peruse studies about similar firms or industries.
Try: The Market Research Portal at KnowThis.com contains a section devoted to finding company and industry information. Look for research on your market at trendwatching.com.

Conduct your own research

So-called "primary research" is another way to track consumer behavior. Select marketing firms specialize in tracking customer behavior through surveys, focus groups, and direct observation or monitoring (such as "cookies" used by Web sites to track visitors preferences).
Try: You may have heard of Nielsen ratings for television, but were you aware that AC Nielsen also does consumer behavior research tailored to your business? Claritas also offers customized behavioral profiles for purchase.

Sharpen your skills

Keep up with the latest on consumer behavior research by monitoring industry Web sites.
Try: The Association for Consumer Research publishes studies on the mind of the consumer. Take a tutorial on buyer behavior at KnowThis.com.

 

• Use customer feedback cards to gather some of your own information – include a self-addressed, stamped one with each purchase.
• Provide customer surveys with regular newsletters or at your web site.
• Keep your eyes open while reading general marketing or business magazines to spot trends in your industry or in market research.
• Never underestimate the power of the Internet – make sure your marketing department is tracking customer behavior while visiting your web site, how long they spent on each page, etc. or ask your web designer to implement a tracking system.
• Ask around at trade shows and conventions to learn how your competitors are tracking their customers' habits.

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