It is interesting how people prefer or buy particular products or services over others. This makes consumers wonder how the brands offering these products guess what they like. Brands produce behavior-based products, which are designed according to consumer behaviors. These products satisfy consumers’ present and future needs by looking into customers’ consumption patterns.
Behavior-based Products: Explained
As its name suggests, behavior-based products are products produced depending on the exhibited behavior of consumers. These behaviors include usage and purchasing behavior, benefits sought, and customer loyalty.
A ride-sharing company, for example, can persuade its customers to ride more often by providing discounts and other valuable offerings. Understanding how your customers use or purchase products or services will allow you to know which product works for them most.
Aside from that, knowing when most consumers purchase or use a particular product is essential. The same is true for the benefits that consumers usually seek in a product.
Customer loyalty is another consumer behavior you should monitor when designing behavior-based products. For example, marketers usually develop a rewards program to return the loyalty of their customers.
Meanwhile, customer behavior is generally described as the customers’ buying habits. Brands observe and gather data on consumer behavior to probe into their audience and design products and services that would be more enticing. Companies that use consumer data surpass their competitors because it allows these companies to target potential customers in a laser-like manner.
Behavioral-based Products and Behavioral Product Management
Behavioral product management involves consumer psychology and behavioral science to design products. For example, since people sometimes make unreasonable decisions, consumer psychology is used to develop products around those irrationalities.
Consumer psychology studies consumers’ beliefs, thoughts, perceptions, and feelings that lead them to make a purchase. To put it simply, behavioral-based products are designed according to customers’ hopes, desires, needs, frustrations, and fears.
Behavioral Product Management: How Does It Work?
Like behavior product management, P&C insurance software allows your company to produce behavior-based products by customizing the personal and casualty (P&C) insurance offering to every potential customer. Nowadays, behavioral product management no longer relies on customer feedback alone, as its conclusions are inaccurate. Brands are now developing their products based on a more proactive approach, understanding human psychology. It is to change and guide their customer behaviors.
For this reason, behavioral product managers can develop products that truly resonate with people. Moreover, since their approach involves behavioral science and product management skills, they can provide satisfying products or services.
One example of product management is psychological pricing. When two similar products are displayed side by side, consumers often choose the one with the lower price. Consumers who prefer prestige or value over price will choose the more expensive product.
Conclusion
Overall, behavior-based products are developed to provide what customers want. Behavioral product managers study what motivates consumer behavior to develop a pattern to help solve problems and improve their products. Behavior-based products let consumers get their expected results from a product.