Customer Behavior Analytics: A Simplified Guide [2022 Update]

A beginner's guide on customer behavior analytics

Customer behavior analytics is a must if you want to thrive in a digital world full of competent competitors. Also, many marketing and advertising efforts, such as behavioral targeting, require precise customer behavior data and analysis.

The most thriving companies have a customer-centric outlook. They are creative companies with high revenues and growth rates. The statistics of companies that use customer behavior data as part of their business demonstrate this point.

Forbes’ list of 100 customer-centric companies reveals many well-known brand names like Apple, Amazon, and DHL. It’s proof of the positive impact of a customer-centric approach.

Surely, customer-centricity strategies would be hard to implement without a deep look into customers’ behavioral patterns.

This article discusses the reasons and impacts of using customer behavior analytics. We also provide you with a step-by-step guide on implementing it into your business.

Let’s dive in to see the reason behind the significance of behavior data-driven strategies in today’s marketplace.

Note: Looking for a cost-efficient user behavior analytics tool with an intuitive user interface? Sign up for WatchThemLive now and get access to all the data you need to understand your customers deeply. 

track user activity

What Is Customer Behavior Data?

Customer behavior data is a form of data that shows all your customers’ activities during their purchasing process. These activities can include purchasing an item, abandoning a shopping cart, or canceling an order. All of them are considered customer behaviors and they need to be tracked, measured, analyzed, and optimized.  

What Is a Customer Behavior Analysis?

A customer behavior analysis is a complete investigation of how your customers act across each interaction point of their journey. Conducting customer data analysis properly allows you to uncover your customer needs; so you can satisfy them and increase your customer loyalty. 

Why Conducting Customer Behavior Analytics Is So Important?

You should conduct customer behavior analysis to predict customer values and optimize and personalize content. Without customer-centricity, how can you enhance retention and provide exceptional customer support? 

Let’s jump in to discuss how user behavior analytics helps businesses:

1. Focusing on the Most Valuable Customers

User behavior analytics help you predict customers’ value and focus on the most value-generating buyer personas. Only by analyzing the behavioral patterns of customers can you identify and target the most profitable customer groups.

2. Optimizing and Personalizing Content Marketing Efforts

Optimize content delivery time and channel using customer behavior analytics data. It enables you to present your content when your customers most probably expect and engage with it. A good understanding of their lifestyle gives you valuable information on the place or platform to publish content.

Content personalization is another practical way of increasing audience engagement with a brand. Research indicates that 80% of B2B companies that personalized their content found it very effective compared to non-personalized content:


Some responding companies didn’t adopt a content personalization approach in the same research. For example, when examined, over 50% reported whether they didn’t have access to data or technology needed for content personalization. And that was their reason for not adopting a content personalization strategy.


There could be no better way to emphasize the role of consumer behavior data in customizing content than these interesting statistics.

3. Enhancing Customer Retention Rate

Customer retention rate should be tracked as an important marketing metric. You can improve this metric by acknowledging your customers before leaving you for a competitor.

While acquiring customers is essential, it’s more imperative to keep them happy and engaged. By distinguishing positive and negative consumer traits, a behavior assessment will assist the staff in lowering the churn rate.

One of the advantages of customer behavior analytics is understanding your customers and their buying habits. Also, having access to such data makes it easy for you to develop tools and strategies to retain them.

How to Conduct Customer Behavior Analysis?

Customer behavior is influenced by personality traits, social trends, and psychological responses. Now that we know the reason for its importance in the business world, let’s discuss how to perform it in six easy steps:

Step #1: Audience Segmentation

Categorizing your customer base is a good start for analyzing customer behavior. Next, try identifying the characteristics of your most valuable customers. These characteristics can include their age, gender, location, interests, and habits.

Step #2: Examine each Group

Analyze each customer segment’s needs and perceived values that result in buying from you. For example, is it the urgency that matters most to them? Is it the convenience you offer by your eCommerce website? 

Additionally, you can ask customer behavior analytics interview questions to gather more valid data. Finally, look for similar traits in each group for qualitative customer behavior data.

Step #3: Extract Quantitative Data

Besides the qualitative data collected through interviews, you can send out a customer analytics behavior questionnaire to gather quantitative data.

You can also extract stats from your blog subscribers and social media insights. Also, if you have built your eCommerce website on Shopify, you can use customer behavior analytics in Shopify to extract data.

Step #4: Compare Different Data Types

Look for recurring trends in your customers’ behavior patterns by comparing qualitative and quantitative data. Use the data sets as a guide at each customer journey stage. Analyze your data based on customer experience at each stage and for each customer segment.

Once you have done this, you can find trends and patterns in their traits and obstacles in each stage. It’s important to have a particular focus on your valuable customer segment, the ones who generate most of the revenue for you.


Step #5: Test your Analysis in a Campaign

Now that you have an idea of what each customer segment needs, it’s time to use the data. You can apply your findings to customize your next campaign for various customer groups.

As mentioned earlier, you can apply customer habits analytics to deliver content on the most suitable channel. Moreover, test your analytics and ask your customers to check how they are experiencing the new changes. Finally, use the session replay service of WatchThemLive to observe changes in user interaction with your website in real-time.


Step #6: Analyze the Outcomes

You’ll undoubtedly want to see how the modifications succeeded after you’ve given them enough time to evaluate. To assess the impact of the new campaigns, use metrics such as conversion rate and CLV. It is crucial to regularly review the findings because emerging technology, politics, and events affect customer behavior.

How to conduct customer behavior analysis

What Platform Can Help with Customer Behavior Analytics?

WatchThemLive is a great tool that can assist you with conducting customer behavior analysis.

This platform empowers you with functional tools to check visitor behavior and engagement on your website. It’s an easy-to-use platform that offers the following customer behavior analytics features:

  • Session Replays

Session recording is a useful feature of WatchThemLive, providing you with valuable qualitative data on visitor behavior. What gives you a better idea of your users’ behavior than seeing how they behave on your site?

You can watch every movement of your users from clicks to mouse movements through session replays and understand a lot about their behavior and how they are interacting with your website right now!

  • Heatmaps

Heatmaps show you the most interesting parts of your website from the visitors’ eyes. So place your most important CTAs where it gets the most attention. It’s easy, right?

  • Web Analytics

Website analytics provides you with invaluable information about your visitors’ behavior such as, what devices and operating systems they use or which countries they are from, and their browser languages. So you can deliver a superior user experience and increase their engagement on your website. 

  • Goal Tracking

Goal Tracking is an excellent feature on the WatchThemLive, allowing you to show how effectively your website engages visitors to convert them. So you can identify what’s working and what’s not working on your website and measure the success of your marketing efforts. 

If you want to become familiar with their other features, Watch the video below:

$ WatchThemLive Pricing

WatchThemLive starts free. No credit cards are required to sign up on WatchThemLive. It offers 1,500 pageviews and 1,000 replays, three website heatmaps, and unlimited goals on its free plan.

Also, it takes 1-2 minutes to sign up and access the dashboard. Then, you can add your website to the dashboard and access data after embedding the code on your website.

For more session replays and heatmaps, upgrade your plan to premium. The premium plans start as low as $29 per month and go up to $99 per month. 



Customer behavior analytics can contribute greatly to a company’s performance, especially in marketing. Throughout this article, we covered three main questions regarding customer behavior analysis.

First, we discussed several important reasons why it is so important. The benefits include identifying key customer segments, customizing content marketing efforts, and increasing retention.

Then, we outlined the stages required to conduct customer behavior analysis. Briefly, they consist of identifying customer segments, examining them for qualitative and quantitative data, analyzing data, and testing insights.

Finally, we introduced the WatchThemLive platform that assists with your customer data requirements for easier access to user behavior data. Give WatchThemLive a try and sign up for FREE.

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