What is online behavior tracking?
Online behavior tracking is a technique companies and advertisers use to create targeted advertisements and marketing campaigns. Online behavior tracking gathers information about how customers act online, instead of just collecting demographic information. This data is then used to create personalized content and nurture qualified leads toward conversion.
Online behavior tracking monitors users’ online browsing habits and is used to profile their interests for the purpose of targeted advertising. Ultimately, tracking consumer behavior online is a way for companies to attract targeted traffic to their websites, decode their visitors’ online behaviors, and boost conversion rates through behavioral marketing. Typically, customer journey analytics software is used to facilitate and monitor the customer experience across all possible channels.
Types of online behavior tracking
There are two types of online behavior tracking, depending on where the user’s behavior is being monitored.
- Onsite behavioral targeting collects data on how a user behaves on a company’s website. This on-site behavior tracking is mainly used for user experience (UX) personalization. This data allows advertisers to display hyper-relevant content and advertisements to every website visitor, which ultimately boosts customer engagement and conversion rates.
- Network behavioral targeting collects user behavior on an advertiser’s website to understand their interests and purchase intent. This data is then used for personalization and retargeting. Highly personalized ads are shown to visitors, increasing the likelihood that they will click.
Benefits of online behavior tracking
Building campaigns with strong behavioral targeting helps companies distribute relevant ads and emails to their target audience. Online behavior tracking provides companies the information they need to implement those strategies.
- Better ad click-through: Personalized ads generally perform better than generic ones. When customers click on an ad that targets their interests, they’re more likely to continue browsing the site.
- Higher conversion rates: Tracking users’ online browsing habits helps advertisers understand their consumers’ interests, wants, and needs. Advertisers can then present users with highly targeted ads that are more likely to convert.
How to track online behavior
Online behavior tracking is the digital tracking of consumer behavior. The following elements are used to gather behavioral data:
- Cookies: Text files with data that identifies a user’s computer to improve their browsing experience
- Device IDs: Numbers that identify and track mobile devices for applications and advertisers
- Mapping: Records behavior in a specific place and time
- Geo-location: Uses location tracking through GPS and IP addresses to reveal the location of electronic devices
Online behavior tracking best practices
Online behavior tracking is a useful tool for companies looking to improve their advertising ROI. For successfully tracking consumer behavior online, the following best practices should be considered.
- Be transparent: Online behavior tracking is beneficial to consumers, too. They’re presented with a personalized browsing experience that simplifies online shopping. Even so, not every customer feels comfortable sharing their behavioral data. With that in mind, it’s important for companies using online behavior tracking to disclose their tracking practices to customers. Companies can also provide an opt-out option for customers who don’t wish to participate.
- Improve the customer experience: The ultimate goal of online behavior tracking is to boost conversions, and this is achieved by using behavioral data to personalize the customer experience. When customers are shown content and advertising tailored to their behavior, conversion rates and other key metrics like customer engagement and loyalty improve.
- Put online behavior tracking insights to work: Online behavior tracking is just the first step. These insights must be applied to elements like ad targeting and UX personalization for companies to achieve results.
Martha Kendall Custard
Martha Kendall Custard is a former freelance writer for G2. She creates specialized, industry specific content for SaaS and software companies. When she isn't freelance writing for various organizations, she is working on her middle grade WIP or playing with her two kitties, Verbena and Baby Cat.
