understanding consumer behavior

Why understanding consumer behavior is one of the best things your company can do

Understanding consumer behavior helps brands create impactful marketing campaigns which improve sales. Why a consumer decides to buy a product is based on several factors that brands could potentially control. This behavior shifts based on where and when consumers see ads, as well as the way in which they buy products. A thorough review of common consumer sales drivers will give brands the insight needed to best direct their marketing efforts.

Marketing strategies should work to create an improved customer experience. In-the-moment marketing helps brands reach consumers at the right time, with the right message, but only if they truly know their audience. By leveraging available technology, brands can create a transparent, personalized experience for consumers.

Factors in Understanding Consumer Behavior

Typically, consumers spend a short amount time when deciding to purchase smaller, everyday items, making it difficult to understand buying behavior. On the other hand, when buying big ticket items like a car or home, a consumer may take months or even years to decide. Influences on consumer purchase decisions depend on four factors: what, where, when, and how.

  • What: A consumer purchasing a carton of ice cream is going to plan out their shopping trip more extensively than someone purchasing a package of bandages, as the ice cream has a short shelf life. As such, advertising a sale on gallons of ice cream during a consumer’s lunch break would be a poor decision, as the consumer probably wouldn’t be able to bring it home and put it in the freezer.
  • Where: Consumers in the shopping aisle or near a QSR are better prospects for advertising because of their product proximity. In brick-and-mortar locations, brands often utilize shelf space and in-store displays to reach these traveling individuals, but these options aren’t always ideal due to limited space and high competition.
  • When: Reaching consumers when they’re in a purchase mindset is critical to making a sale. Establishing advertising windows for seasonal items, as well as connecting with consumers during micro-moments as they complete their daily tasks, will impact a consumer’s purchase behavior.
  • How: How consumers purchase a product will directly impact how the brand needs to market it. Brands should think further than simple online versus offline sales, focusing on the medium of purchase. The growing smart speaker market, with its voice ordering capabilities, is a prime example. Brands will need to optimize campaigns to reach consumers who choose to use these devices and methods to make purchases.

About 65% of consumers report they’re comfortable with brands having access to their data if they’re willing to use it to offer better-targeted ads. The information available on public social media profiles, through third-party apps, and via existing purchase records all help brands understand the factors which influence purchase behaviors. As such, many brands are turning to mobile app advertising to deliver a targeted experience that drives sales.

Leveraging Consumer Behaviors in Advertising

understanding consumer behavior to increase salesCosmetics brand, Rimmel, recently revamped its marketing strategy based on a more in-depth understanding of consumer behavior. The brand recognized that beauty products are difficult to shop for online, which means consumers will be much more dependent on recommendations. The brand targeted beauty fans in Dallas and San Diego by sending out boxes of products with a heavy emphasis on its Scandaleyes eyeliner. They encouraged consumers to share their reviews of the products, and they did. Overall, the brand reported a near 70% sales lift across its entire line of eyeliners through this campaign.

The reason the brand did so well with their campaign is because they understood how consumers shopped for cosmetics, as well as the barriers in their way. This insight led them to focus on micro-influencers to build trust, which drove a significant sales return. Brands can adapt this strategy for their products by understanding what’s important to their targeted demographic.

Understanding consumer behavior is the first step to creating a personalized experience that breeds brand loyalty.

For CPG brands, this often requires reaching consumers as they shop. Mobile app marketing can offer an ideal solution for brands who want to reach traveling consumers. Shopkick, for example, uses location-based marketing teamed with an incentive program to direct consumers to products in the store. Through the mobile app, brands can overcome the barriers of poor shelf placement or limited advertising space by reaching the consumer on a personal level.

Understanding consumer behavior is the first step to creating a personalized experience that breeds brand loyalty. A review of why consumers buy products, as well as where, when, and how they buy them, helps brands gain insight which can be used to streamline campaigns. Mobile apps marketing can also provide a means for brands to deliver these personal messages and offer targeted ads to consumers.

Shopkick helps our partners connect with consumers as they shop, to better take advantage of critical moments prior to purchase. To get information on how our app can improve your in-store marketing results, contact us.

Image courtesy of Rawpixel



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Dima Volovik

EVP of Product and Engineering

Dima Volovik is the EVP of Product and Engineering at Trax Retail — Shopkick.

Dima Volovik is the accomplished product and engineering leader who led teams to deliver innovative and commercially successful e-commerce products, marketplaces, and enterprise solutions for Amazon, Comcast, Fandango, and Universal Music. Before joining Trax, Dima was the Director at Amazon, where he led product development and Engineering for Amazon Appstore and Amazon Prime Video, CTO at Fandango, and Paciolan, head of technology at Golf Channel/Golf Now, and Global VP of Direct to Consumer Technology at Universal Music Group. Dima’s expertise includes developing consumer products, marketplaces, and enterprise solutions.

Dima grew up in Baku, Azerbaijan, where he received his MS in Electrical Engineering from Azerbaijan Oil Academy, and he currently resides in Los Angeles, California, with his family.