Factors That Influence Customer Behavior


Customer behavior refers to an individual’s buying habits, including social trends, frequency patterns, and background factors influencing their decision to buy something. Businesses study customer behavior to understand their target audience and create more-enticing products and service offers.

Customer behavior doesn’t describe who is shopping in your stores but how they’re shopping in your stores. It reviews factors like shopping frequency, product preferences, and how your marketing, sales, and service offers are perceived. Understanding these details helps businesses communicate with customers in a productive and delightful way. 

There are three factors that influence customer behavior: personal, psychological, and social. Let’s dive into each type. 

Unmask customer behaviour to Augment customer satisfaction

Be insightful about your customers to diminish the drop-offs and grow your business with a sophisticated and intelligent customer behaviour analytics.

Collectunerring and dependable customer data to unveil customer behaviour and Understand your customers to create a better experience with customer behaviour analytics.

Well-heeled customer data:

Integrating every single aspect  of customer data from varied sources to create an all-encompassing view of customers and building an interspersed view of the customers across their transactions, interactions, feedbacksetc.

 Dividing your customers into segments up based on common characteristics:

  • Slicing and dicing of customer data to build dynamic segments of previousand existing customers to remit personalized offers, revamping the success rate. 
  • Automation of Intelligent cloud workflow management and scheduling methodfor fragmentation of customers in real-time as they engage with a company.

Customer acquisition analysis:

Fresh look into new possibilities and new customers, dividing them into segments.Checking these segmentsto identify which segment of customers are more likely to respond positively to the acquisition offers.

Important steps to optimise customer acquisition:

-Improve conversions via the website

-Turn existing customers into brand ambassadors

Predicting Churn and Retention:

-Adjust and try a new customer acquisition strategy

-Leverage traditional and non-traditional data to build ML models to detect inactivity and predict potential churn. 

-Build models to identify and understand drivers of churn. 

-Develop models to analyse the efficacy of various churn and reactivation offers or campaigns. 

Measure and iterate

As you roll out new initiatives, use your analysis to hypothesize what customers will think and do in response to the change. Compare their reactions with your predictions, and use the metrics you set out in step 1 to measure the success of the adjustments you made.  

If the first iteration doesn’t provide the desired results, don’t give up! Try another variation or tweak your approach and test, test, test! As we mentioned earlier, behavioral analysis is an ongoing process–you’ll continue to learn and improve as you go. Continuous analysis allows you to make incremental improvements to existing processes and keep a pulse on ever-changing customer needs, market trends, and how outside factors (like a political election) may influence consumer opinions, motivations, and behaviors. 

Advanced behavioral analytics tools like Scuba can help you analyze, visualize, and manipulate your data quickly, without the help of data scientists or advanced coding knowledge. You can create new queries on the fly, change or create new customer segments, and adjust existing queries easily. 

Customer Engagement

What is Customer Engagement?

Customer engagement, a term that has gained a lot of traction among online firms lately, is a measurement of how frequently a brand interacts with its customers during its whole lifecycle. Customers may help brands develop and strengthen a “human-to-human” connection with them and contribute value outside of purely transactional partnerships by consistently engaging with them across a range of media.

Customer interaction inevitably takes center stage as more companies choose the customer-centric approach when creating their marketing strategy to create top-of-mind awareness and accomplish the desired inbound growth.

Understanding Engagement Obstacles

For a company to achieve success, it must close the gap between customer experiencesand expectations. A lot of companies speak of being customer-centric but fail to implement practices that satisfy their customers. The best customer service is one that is effortless and offers a personal touch. Companies that follow these principles gain a considerable advantage over their competitors who fail to do so.

Here are five engagement obstacles that might prevent a company from achieving true customer service success.

  1. Misunderstand customer expectations:

Do you know what your customers want? Failing to understand the exact expectations might prevent your company from building a customer-centric culture that will eventually win loyalty. A company must take out time to analyze customers’ behavior and determine what they want from you and ask them directly in case of doubts. Ensure that your proposed technology /solution/goods and service is making customers’ lives easier.

Convergytics Solution: Following a methodology to give customers space to express their views, acknowledge their emotional state, understand their viewpoints by paraphrasing, and explain their Pros and Cons.

  • Lack of transparency and clarity:

Unclear company policies may lead to confusion and frustration among customers. Customers will certainly leave your company if vague information costs them money and time. Employees must be well-trained and kept up to date about all policies to relay consistent information. The bottom line here is that customers need to trust you, and clarity is key to earning this trust.

Convergytics Solution: Using clear and concise communications, being radically transparent, allowing two-way dialogue with customers, and not incusing any Hidden Costs during the lifecycle of the project.

  • Weak omnichannel engagement

Every company must employ an omnichannel approach to optimizing customer engagement. For example, your customers might prefer to contact you via call more than email or social media. However, if your service agents are not quick to respond on these channels, you are not meeting customer expectations and likely losing customers. Be prompt on all channels and identify if your company needs more agents.

Convergytics Solution: Understand the impact of user satisfaction across channels on various contact reasons for customer loyalty. Carrying Engagement journey mapping to determine cause & effect between different engagement channels.

  • Failure to deliver as promised

TRUST is everything for better customer engagement. If your company is promising something to its customer, stick with it. Be careful with what you promise, both over-commitment and under-commitment can put your efforts in vain. First, focus on delivering exactly what you have promised, and then make efforts to go out of the box when the opportunity arises.

Convergytics Solution: Anticipating areas prone to breakdown and handling them as needed and keeping the clients updated and informed, analysing the problem, fixing it, and establishing the learning points. A shorter time to resolution is the key.

  • Not using all available feedback and data for improvements

To offer the best service, solicit the feedback of both customers and employees. Project success depends on your ability to ask thoughtful questions and look at every aspect of your service at the micro level. Listen carefully to your customers and engage them in a meaningful way, your company will earn their trust and gain success.

Convergytics Solution: Carrying out Customer satisfaction analysis to deliver actionable insights. Create a dynamic and real-time customer journey activation strategy to enhance the experience

Overcoming the barriers to customer engagement might be challenging, but no doubt it is necessary when companies that improve their CX see increased revenue and report cost savings.