Any marketing strategy relies on user information to promote a product or service. The difference is that a behavioral marketing strategy targets users based on how they interact with your product, website, social media, or any other touchpoint you can think of. The benefit? That your users will receive content that they actually need or find interesting.
As a product-led business, behavioral marketing will play a key role in the life of any product manager, and vice versa! By segmenting users according to product usage and interaction, you can target individual user stages according to a defined user type. For example, we have defined Evaluators as users who are looking for a specific tool to solve a problem; Newbies are users who aspire to become experts in a product or service. Product and marketing teams need to join forces to present your product as the solution and a user-friendly tool.
So, what does this mean in terms of making money? Lower CAC, lower churn rate, fewer support tickets, a higher conversion rate, and more sales. And that’s pretty cool.
This article covers:
- What is Behavioral Marketing?
- Why is Behavioral Marketing important?
- Behavioral Marketing strategies for Product Managers
What is Behavioral Marketing?
Behavioral marketing targets users based on how they interact with your product or service. You can gather this information through loads of different sources, such as ad campaigns, websites, emails, chatbots, or even social media pages. In other words, any channel where users can interact with you is a great source of behavioral data.
Behavioral marketing strategies come in all sizes and shapes, depending on what you want to achieve (remarketing, product launches, etc.) and where (email, website, social media, etc.). Having said this, they all follow a similar process:
- Collect and analyze data. You’ll need a powerful platform for this one.
- Segment users – Make sure to define your user types.
- Apply segmentation tactics. This is the part where you check if your behavioral segmentation actually works!
Why is Behavioral Marketing important?
It’s not just the marketing team who is concerned with marketing strategies. Well, it may mean a bit more to them, but it’s definitely a company-wide effort if you want to be successful!
But why is it so important? There’s a list of reasons to keep in mind and we’ve written them down so you won’t forget:
- Revenue impact. It’s not just your sales team that should focus on revenue. Product managers need product usage insights to figure out the best way to deliver revenue for sustainable growth. Product analytics are key in understanding how the features are affecting your product success.
- Higher conversion. Product analytics is not only focused on revenue, it can also offer valuable insights into the entire customer journey, from acquisition to loyalty. A freemium acquisition model won’t directly drive revenue – for an obvious reason – but it will offer users the chance to try your product for free! And that’s an excellent time to gather more behavioral data on usage patterns. I mean, who doesn’t like trying stuff for free?
- Proactive support. Product managers have access to real-time user data, so you’ll definitely want to treat them to morning coffee if you’re in the marketing team. This will not only help you develop relevant content, but you’ll be able to target messaging immediately. They can also provide usage patterns on pain points, so you can anticipate any churn risk.
Behavioral Marketing Strategies for Product Managers
So far, we’ve talked about what behavioral marketing is and why it’s important. Now, we’re going to tell you how you can make your product manager happy!
Deliver Revenue through Product Value
Behavioral data on usage patterns can help you figure out the new customer conversion rate, current customer retention rate, and overall user engagement. So, what do these metrics actually answer? Well, for a start, they can help to answer these questions:
- What percentage of users are actively engaging with “X” feature?
- How many users that interacted with “X” feature, converted to paying customers?
- Out of the highly engaged users with “X” service, how many are likely to stick around long-term?
If behavioral marketing helps product managers answer questions similar to these, you can identify your product value and predict revenue based on real user data.
Shorten the Sales Cycle with PQLs
Product Qualified Leads (PQLs) are the dream of any product-led team (excuse the rhyme – it was too tempting). Close to 50% of PQLs convert. Great stat, right? You’ll need to identify which types of events or activities are carried out right before conversion, and at every stage.
By gathering data on the number of content downloads per week, shared content, X numbers of actions performed, etc., you can identify who your PQLs are.
If you’re in sales, you may want to join in on that morning coffee.
This is also part of a proactive customer support strategy. Instead of waiting to fix bugs or issues, the product team can monitor usage in real-time and create automatic triggers as soon as a user encounters an issue.
The result? Your customer support team will have a solution ready before the user reports the issue, and you will also see reduced ticket times.
Define the user
As a product manager, you can use behavioral data to define and better understand the product user. This data includes the actions taken when they face a specific issue or what problems have you successfully solved for them. You can then help sales and marketing tailor content to make it more personal and effective.
Data-driven product roadmap
A product roadmap is essentially a visual representation that answers the “why” and “what” in a product strategy. Since you build a product to be used, behavioral data is key. For example, if the percentage of highly engaged users who interact with a new feature is low, then it may be a feature to revisit.
This data can also provide useful insights into the quality of the product. For example, you’ve already made your customer support team as proactive as possible, yet reports on the same bug continue to occur. That’s another clear sign right there.
As a product manager, you play a key role in fulfilling customer needs through product development and improvement. This means that any data offering insights into how users are getting along with its usage should be closely monitored. What’s more, offering product insights to the rest of the company can help marketing, sales, and customer support communicate the value of the product.
If you’re looking for an extra push to dive into the world of behavioral marketing, Behavioral Marketing with FROGED might clear things up!