Customer Behavior Modeling Can Drive Business Growth
What is the single most impactful factor toward making your business grow and be more profitable? It probably involves your ability to influence human behavior—in fact, the vast majority of all business value is created that way.
Imagine successfully influencing these behaviors: motivating employees to serve customers; getting customers to buy more frequently; having your suppliers extend more credit; motivating retailers to more aggressively sell your product; getting your shareholders to hold their stock.
All of these behaviors would benefit your business. But how do you decide which behaviors to influence, and what to do to influence them?
Customer behavior modeling (CBM) is a methodology for defining and prioritizing the characteristics of products or marketing programs to optimize experiences and maximize behavioral results.
The CBM process is comprised of three steps:
- Defining the customer behaviors, and their typical sequences, that create value for your business.
- Identifying the different types of customers for your business, and what motivates the desired behaviors.
- Writing customer stories (for each customer type) that show how a series of experiences move the customer through a chain of behaviors that ultimately leads to the behavior(s) that create value for your business.
Step 1: Defining Customer Behaviors and Behavior Sequences
To generate value by influencing customer behavior, you first need to know which customer behaviors will generate value. Here are seven steps to help you think through your customers’ behavior and decide which specific behaviors generate value.