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What is Behavioral Targeting and How Can it Benefit My E-Commerce Business?

With the current rough estimate of 24 million e-commerce stores globally, there is one way you can always stand out from the crowd – personalization. 

Every user is distinct, meaning that how they respond to marketing campaigns will also differ based on their personal habits. That’s where behavioral targeting comes in.

By using a tool like Verfacto, you’ll be able to track visitor behavior and analyze it, generating insights into what form of on-site marketing a user will best respond to. 

By acting upon this data with behavioral targeting, you’ll be able to personalize the advertisements a customer sees, accommodating for what they like and increasing the chance they convert to a paying customer. 

What is behavioral targeting?

Behavioral targeting is the process of analyzing data about customer habits and using this insight to launch personalized on-site marketing campaigns to individual users.

This tailored form of advertising will appear to each user individually, boosting engagement, ensuring that users stay on each page for longer, and making sure no customers fall through the gaps.  

Not only will these targeted pop-ups, ads, and offers be incredibly personalized and boost conversion, but they’ll also improve the user experience. 

Customers who feel accommodated for are more likely to convert into repeated customers, boosting the LTV of your client base and increasing brand loyalty.

How does behavioral marketing benefit your business?

Digital marketing is an evergreen market that isn’t going anywhere any time soon. In fact, the year 2020 saw an average of 12.2% increase on company digital marketing spending.

But, with an increased interest in digital marketing comes higher demand, pushing up CPC and squeezing marketing budgets thin. 

As the cost of digital marketing continues to increase, any customer that clicks on an ad and then doesn’t make a purchase on your store results in a loss of money for your business. 

Instead of suffering along with rising marketing costs, you can implement behavioral targeting into your business and cut back on marketing costs.

Behavioral targeting will individually accommodate to a user by analyzing customer data, changing which pop-ups or discounts are triggered on your website for different users.

By personalizing the user experience, you’ll be able to boost your conversion rate per customer. Instead of blindly launching marketing campaigns, behavioral targeting will adapt to each individual and deliver highly personalized advertisements.

Doing so will increase their likelihood of conversion, lowering your CPC and boosting your sales revenue. 

How does Verfacto’s behavioral targeting work?

By analyzing behavioral patterns, Verfacto can build up a model of how certain customers react and respond to your website.

Common trends in the data reveal typical pathways taken by users. By understanding these habits, you can then adapt your marketing approach, using targeting to boost sales without giving away unnecessary discounts.

But how does this work? First of all, Verfacto builds up a data set of your customers. This includes factors like:

  • Pages visited
  • Amount spent on each page
  • Buttons, content, and ads clicked
  • Acquisition channels
  • Dozens of smaller behavioral details

By analyzing this data, Verfacto can then find common customer trends. 

For example, if a customer spends more than 6 minutes browsing through your product, visits multiple pages, and scrolls through the information on your home page, then there is a 55% chance they will add a product to their basket.

If someone exhibits these patterns, it’s an indicator that they’re likely to make a sale.

But, if they complete these steps and then don’t add anything to their basket, behavioral targeting will trigger Verfacto to then send them a personalized pop-up. This will offer them a small discount, which is normally enough to persuade them into adding a product to their basket. 

And just like that, a viewer that was going to leave has been converted into a paying customer. 

With behavioral targeting tools like Verfacto, no one slips through the gaps.

What information can data-driven marketing tools like Verfacto deliver?

Data-driven marketing tools break users down into individual segments. Basic tools like Shopify Analytics will break user segments in a B2C business down into metrics such as age, location, and gender.

But these categories aren’t detailed enough to truly personalize a user’s experience. 

An advanced tool like Verfacto will further these analytical profiles, expanding user segments to include metrics like buyer personality, values, type of buyer, and so on.

By analyzing trends in user behavior, Verfacto will provide in-depth information on CLV, AOV, add to basket rate, returning visit rate, and second purchase rate for each user segment. 

Different marketing strategies work for different segments. While one group may be more inclined to buy after receiving a discount pop-up, another might be enticed by a flash sale. 

By identifying what type of a user a customer is, you’ll then be able to use behavioral targeting to accommodate for their buying habits, and urge them into triggering your desired result. 

What forms of personalization can behavioral targeting offer?

Once Verfacto has established the type of customer a user is, it will then compare their habits to past data sets. From this, you’ll be able to run on-site marketing which is personalized for that user. 

This style of behavioral targeting will enable you to:

  • Create custom pop-ups that are designed to appeal to certain types of customers 
  • Create time-based flash sales and campaigns based on the hours when most users are active
  • Create and send target messages to a user, accommodating to their buying habits

With behavioral targeting, you’ll be targeting users based on who they are and what they do on your site. Analyzing data and acting upon it through behavioral targeting makes sure you approach each user with the very best chance of converting them into a paying customer.

Final Thoughts

Coupling a data-driven marketing tool like Verfacto with behavioral marketing is a surefire way to boost your conversion rate, increase CLV, and make sure that everyone that visits your site feels accommodated for.

Don’t fall into the trap of general marketing. Use behavioral targeting to personalize your e-commerce store and supercharge your sales.

If you want to start harnessing the power of behavioral targeting for yourself, then Verfacto is currently offering a one-month free trial. Click the link and get started today!