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Why do I need to understand consumer behavior?

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Why do I need to understand consumer behavior?

Hello, and Welcome to Racext’s Car Magazine column, the column aimed exclusively at the world of 4-wheeled vehicles with news, insights and guides, available every day here racext.com, today in this article we will talk about “Why do I need to understand consumer behavior?”

Why do I need to understand consumer behavior?

We know that every company has a common purpose: to sell. But to achieve this you need to have a well-structured sales process, do you agree? And this is where many companies get it wrong. This is because they don’t see that planning is very dependent on understanding consumer behavior. Therefore, they do not get the expected results.

In this sense, it is necessary to go beyond the superficial information on the profile of your customers, since the goal is to know what they think and find out what their expectations and needs are. Only then will you develop the ability to understand this data and use it to your advantage.

Interested in the topic? In this article we will explain the importance of understanding the consumption behavior of your shop and, above all, we will show you how to do this mapping. Read on and take a look!

What is the study of consumer behavior?

This study aims to understand the actions and decision-making processes that lead people to purchase goods and services. In other words, it is a way to observe and analyze how they behave when they decide to buy a product or request a service that meets their needs.

For this reason this has become one of the most used strategies in several sales-related segments. After all, as previously mentioned, creating a well-structured and efficient process requires understanding consumer behavior so you can know what they think and want.

That’s why marketers use this feature a lot to understand and map customer expectations. Only in this way can they develop solutions that exceed the demands of these buyers.

For this, it is necessary to collect as much information as possible about the customer profile. It is important to look at the type of service or product they like and then understand their preferences, likes and dislikes. Therefore, we can conclude that once you understand your target audience better, it becomes easier to develop solutions for your consumers.

Understanding the consumer behavioral profile:

To understand how consumer shopping behavior works in practice, just imagine the following example: a cosmetics company wants to analyze one of its moisturizers. In this case, a market investigation was conducted, which found the following information:

• who consumes the product: women aged 30 to 40;
• when they consume: at any time of the year, but it has been found that the demand is greater in the winter months;
• why consume: to reduce skin problems and maintain hydration;
• how many times to apply: 2-3 times a day;
• how often do they buy: twice a month;
• where they prefer to buy: in pharmacies and supermarkets.

In addition to this data, further research and other issues can be investigated to accurately understand customer needs. Therefore, factors involving the following can also be observed:

• social class of consumers;
• region where you live;
• culture and customs;
• personality;
• Lifestyle;
• motivation;
• beliefs etc.

Keep in mind that the more you know your audience, the better your business will be. This is because, when the manager is aware of which consumers he must attract, he must identify the paths that can be traced to achieve the goal. The benefit of this is the expansion of sales and greater customer satisfaction.

What is the importance of this study?

Chances are you’ve already walked into a store and noticed you were the only one there. Also, he realized he was the only one who walked into the factory for hours. The consumer’s lack of interest in the product or service offered by this company leads us to think that it hasn’t bothered to get to know its audience and know what they need.

On the other hand, you have seen or even consumed a product or service from a company that is always crowded, full of demand. What would be the secret of this? In addition to investing in engagement-generating marketing strategies, this firm sought to know what its audience wants. Only then, with this understanding, do you develop proposals that always go beyond your expectations.

Given these two situations, the importance of studying consumer behavior is clear. Through this analysis, you can understand the reasons that lead customers to consume (or not) your products and services. So this is the key to expanding sales and ensuring the success of the company, don’t you think?

It is good to keep in mind that each consumer has a different reaction in relation to the products and / or services offered by the company, as in the case of a mechanical workshop. In this sense, when you cannot interpret this behavior, it will be difficult for you to be successful in your sales and service.

Interestingly, consumer behavior is constantly changing, so it’s extremely important that your business maintains the study all the time. In this way you will be able to keep the services up to date.

How to study customer behavior?

Furthermore, to create an attraction strategy that generates results, it is essential to put some actions into practice. Check it out!

Habits on the map

Mapping consumer habits is one of the first steps in building an effective attraction strategy. The idea is to let you find out when, why, how and where your client decides to request your services. Therefore, before understanding your audience profile and tracking your goals, you need to decide whether the mapping will be done individually or collectively.

The survey on consumption habits, therefore, must be a direct interview with strategically structured questions. Through the information obtained, it is possible to adapt the services to the customer’s expectations so that they are more attractive and convert the attraction into a sale.

Understand your relationship with the vehicle

As mentioned, there are different consumer profiles. Therefore, your machine shop must be prepared to deal with each of them. To begin this preparation process, the ideal is that you understand your customer’s relationship with the vehicle itself.

With this in mind, your customer base can consist of:

• parents who follow the maintenance program to the letter. Always before a trip they ask for a complete overhaul of the car;
• businessmen who use the car for work, therefore, appreciate the smooth running of the vehicle;
• lovers of sports or collectible cars always looking for something new to install, exchange or overhaul.

Have you noticed that they all have a direct relationship with the vehicle, but the objectives that lead them to your workshop are different? Knowing how to make this distinction is essential when choosing the best approach, identifying the type of service they are looking for and which offers may be interesting for each of the profiles.

Know how and when to find your workshop

When you recognize the relationship your customers have with the vehicle itself, it is easier to predict how and when they will request services. Knowing this allows for better time management when planning more efficient sales strategies. All this facilitates the provision of the service, since, in the design phase, the necessary resources have already been thought of to solve the needs.

Plus, when consumers perceive your interest in offering them a positive shopping experience, they quickly become loyal to the lab, because they know they will never be disappointed. If so, a relationship based on trust and goodwill emerges on both sides.

Find out your earning power

It may not seem like it, but knowing your customers’ financial strength is really influential in your sales strategies. Doubt? So, imagine the following situation: An auto repair shop has started providing features specific to luxury cars, but most of its customers are middle-class. Can you feel the distance from reality?

Consumers of this company may also have an interest in one feature or the other, but they won’t have the right conditions or vehicle to fit in. Therefore, due to the lack of qualified information, the manager will make losses, as he has invested in a solution that does not serve his audience.

However, you may be thinking, “what if the company chooses to serve high-class consumers?”. This release may also be possible, however, it will require more investment, as it will have to change its entire strategy to serve this new audience. Furthermore, the question remains: Why spend on new customers when you can invest in the ones you already have?

Not that attracting new customers isn’t necessary, quite the opposite! The point is, there is no point in attracting the person and then rejecting them. Not to mention, consumers who already know about your services are more likely to become brand loyal and are more likely to spend more often. Think about it!

Understand what your pains are

In a few moments while reading this article, we highlighted the importance of knowing what your customers’ problems are. This is because it is through this information that your business will offer exactly what it needs. Obviously, this action translates into greater consumer satisfaction, assertiveness in services and profitability for the business.

So, do you want to know what your customers’ pains and needs are? Ask him! There is currently a number of ways to obtain this data, so make sure you make good use of these tools and extract as much relevant information as possible.

Monitor their opinion on your workshop

It’s not enough to gather insights into your customers’ behavior in the first instance and not keep in touch frequently. Like any other relationship, to develop a lasting bond you need to invest time and dedication if you want to ensure the best coexistence.

Therefore, it is always necessary to know what your client thinks about your services. In this case it is possible to ask oneself about the level of satisfaction, what can be done to improve one’s experience, what are the negative and positive points of the company and if you would recommend it to a friend.

This information can be used as an auto shop indicator. Based on this data, you will know what needs to be done to improve services and further strengthen the relationship the customer has with your company through this constant interactivity.

What are the benefits of understanding consumer behavior?

As you read this guide, you may have already noticed the benefits of studying consumer behavior, right? However, to make its advantage even clearer, we have prepared a list with the main advantages of this method. Watch!

Optimize communication with customers

Improving communication is one of the first benefits to note. This is because, when you understand what your client needs, expects and wants, it is a sign that there has been an effort to get closer to him to develop this ability. And since every healthy relationship needs a dialogue to maintain its vitality, between your shop and your customers it would be no different.

Efficient communication facilitates the resolution of various situations. Mainly in those cases where the customer is dissatisfied or frustrated with the service provided. Even if the job was done in the best way, you have to keep in mind that unexpected events happen, right?

Therefore, it is necessary to be prepared to face any type of scenario and, above all, to always make the consumer understand that he will never be harmed by the company.

Correct prices

When you know who your customer is, i pricing services are simpler. As mentioned in one of the previous themes, the purchasing power of the public directly affects sales. Therefore, when the consumer’s purchasing power is already in mind, prices must follow this reality.

Customer loyalty

By applying the sales strategies correctly, the chances of building customer loyalty are quite high. This retention process is characterized by personalized service, efficient service delivery and trust. Therefore, it is considered essential for any workshop that wants to increase their profits and expand their businesses.

Additionally, investing in strategies that build customer loyalty offers the following benefits:

• the increase in purchase volume;
• a predictable income;
• an amount spent on a larger purchase;
• spontaneous and constant indications;
• advertising optimization for the mechanical workshop;
• access to honest feedback.

Prepare promotions and attractions

From the moment you have a loyal clientele, you can create promotions and attractions at advantageous prices for your audience. Additionally, the results of the consumer behavior analysis help develop engaging campaigns that interact directly with your target audience.

Increase the average ticket

The average ticket is an indicator of sales performance, which shows the average of how much each customer spends each time they visit your store. To calculate this, simply divide the total sales turnover by the amount of sales made during a period. Through this feature, you have valuable information that will help you create a more efficient sales planning and, above all, optimize results.

Therefore, looking for ways to increase your company’s sales and average ticket is essential for business development. It is the average ticket that helps you evaluate workshop performance and continue to implement changes to increase revenue.

Improve the quality of service

Considering that the goal is to provide the customer with the solution they need, it is not surprising that there are improvements in the quality of service after compensating for customer behavior. To help you in this improvement process, it is ideal to use methodologies that aim to help in better management.

A SWOT analysis, for example, is a management method that aims to identify the strengths, weaknesses, threats and opportunities of the business. With a simple and practical proposal, this methodology allows managers to evaluate their strategic position so that they can make changes and optimize their services.

How to understand the consumer behavior of the shop?

Having understood the importance and benefits of studying consumer behavior, let’s now see what resources or methods can be used to achieve this. Supplementary action!

Conducting market research

Market research is probably one of the most used strategic tools for gathering relevant customer information. They will serve as a basis for decision making. Therefore, depending on the purpose, they can be realized quantitatively or qualitatively, or with simple and objective questions.

There are a few types of polls that can be used to get important data about your target audience. These include satisfaction surveys, consumer habits, brand image and campaign tests.

Parse the customer record

As with market research, customer registration also allows you to get to know your audience better. But, for this, it is necessary to undertake to keep these data up-to-date in order not to run the risk of damaging the results of the strategies.

Therefore, constantly review and update information: personal and contact data, type of car, age group, profession, position, etc. This will ensure the best results from the actions and, consequently, strengthen the relationship with the consumer.

Map what people say about your workshop on the Internet

The internet has been one of the main ways to promote businesses. This is because easy access to technology allows thousands of people to stay connected 24 hours a day. Soon, it became a favorable universe for companies from different segments to promote their services and products.

Just as it can increase the reach of your brand, however, the web can also impede that growth through rapid opinion sharing. In other words, when a customer feels satisfied with the service, they will certainly demonstrate their satisfaction. On the other hand, the same happens when you don’t feel well looked after.

What to do with consumer behavior data?

Once you’ve gathered all the important data on your customer’s behavior, it’s time to start the strategic part. For this, it will be necessary to create the person – semi-fictional character who will represent your client. Its function is to synthesize the main characteristics of consumers so that the company can create precise strategies that meet the needs of the target audience.

Want to see an example? The main audience of his workshop is made up of men with an average age of 30 to 50, married, who use the vehicle to carry out their daily activities and go out with the family. They like to find out about the news in the automotive sector, but they don’t have a lot of technical knowledge about car care.

From this information base, you can create the following person: Marcelo, 40, employee of a multinational company. He is a calm person, who likes to take a vacation with his family, which is why he uses his car when making these trips, as well as for work.

Additionally, he is a fan of auto racing, like Stock Car, and uses the Internet and social networks to stay up to date on automotive news, especially Facebook and Instagram. Despite having no technical knowledge of vehicle care, Marcelo keeps his car in good condition. When necessary, it requires the services of a reputable workshop.

Its main problems are:

• fear of being deceived by the workshops;
• lose your car when you take it for inspection;
• don’t always have money left over;
• I don’t know what to do to store the vehicle.

In addition, we can say that its objectives are:

• know enough about vehicle maintenance;
• do not waste neither time nor money;
• travel by car more often;
• have no problems with your car on a daily basis.

From this person it is possible to guide the actions of the workshop in a more accurate and qualified way. The solution for Marcelo will be to act transparently, offer quality service and provide rich materials that fuel his desire to learn more about automotive maintenance.

The importance of understanding consumer behavior

Therefore, we understand that studying consumer behavior is essential to ensure the growth of your mechanical workshop. So, be sure to put into practice the tips that have been passed on here, as they will help you through the analysis and research process, combined?

Thank you for reading the article Why do I need to understand consumer behavior? , we remind you that this article is reported here for illustrative purposes only and all the news and information in this blog are not editorial, we take care of reporting notions and news from the web trying to make a selection of the contents, any false or misleading information or information that damages the copyright of others are not our responsibility, if requested we will immediately remove them.
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Why do I need to understand consumer behavior?

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