Customer Journey, Shopper Insights

  |   10 Min Read

3 Reasons Consumer Behavior Matters in Marketing

Do you know what’s common in all great marketing campaigns?

They all address the needs, wants, fears, or aspirations of their target audience and position their product as the solution to their problems.

You can’t do that without in-depth consumer behavior insights. This is why some of the world’s most valuable brands, like Apple, Samsung, Coca-Cola, etc., invest millions in consumer behavior research.

But what exactly is consumer behavior, and why does it matter in marketing?


What is Consumer Behavior?

Put simply, consumer behavior is the study of the path consumers follow to reach a purchase decision.

It helps you understand their thought process during product selection, their expectations from a product, the main purchase drivers and barriers, and the external and internal factors that influence their buying decision.


What is the Role of Consumer Behavior in Marketing

Impactful marketing campaigns always rely on solid data and research instead of guesswork and gut feeling.

Understanding consumer behavior provides you with the necessary insights to craft compelling marketing campaigns. It helps you identify your customers’ needs and wants and the most effective marketing angles to use in your campaigns.

With the mainstreaming of eCommerce, social media, and referral marketing, most consumer experiences can be tracked, measured, and studied online.

This is why brands must employ the necessary research before making any crucial marketing decisions.


3 Reasons Why Consumer Behavior is Crucial in Marketing

Consumer behavior insights inform every stage of your product development, marketing, and customer engagement strategies.

Here are a few practical examples that demonstrate the significance of consumer behavior in marketing.

1. Helps You Personalize The Buyer’s Journey

Having adequate consumer insights and a deep understanding of your audience’s buying process helps you personalize their buyer journey.

Research shows that personalization results in greater consumer engagement, repeat sales, and brand advocacy.




According to Statista, 36% of marketers in the US say they achieved an ROI of up to $20 for every dollar spent on personalization.

This is why Amazon, the pioneer in eCommerce personalization, offers fully tailored experiences to users based on their shopping preferences, habits, browsing history, search queries, and countless other factors.

2. Eliminates Friction Points

Consumer behavior helps you understand the main friction points in your buyer’s journey that lead to abandonment and a drop in conversion rates.

For example, VWO investigated the low conversion rates on Lyyti’s pricing page and found that visitors were bouncing off because of too many subscription plans.

They redesigned the page by reducing the number of plans to three, cutting off additional information, and adding a free trial to every page.



As a result, the conversion rates shot up by 94%.

They couldn’t have guessed this without data-driven consumer behavior insights.

3. Increases Per Customer Dollar Value

Understanding consumer behavior helps you identify the exact needs of your target market, create tailored experiences, and pitch solutions that are designed to solve their problems. 

This allows you to persuade your customers to spend more on your products and helps you increase the average order size per customer.

This is precisely why Amazon shows relevant product recommendations on its homepage and product pages.

Facebook uses this strategy to show the most relevant posts, while Google applies it to its search results by displaying the most relevant results first.

All of this is based on consumer behavior studies and data.


Time to Grow Faster With Consumer Behavior Insights

When your marketing strategy targets everyone, it converts no one into customers.

This is why you need to understand your target market’s needs and preferences and invest in consumer behavior research to create personalized marketing campaigns and tailored experiences.


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