How Online Behavioral Data Collection Works

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Over the years, the methods of behavioral data collection have drastically changed thanks to the introduction of new and improved technologies. Now one does not have to resort to old methods such as questionnaires and interviews to gather data.

There are various online tools available that help organizations and individuals collect behavioral data without really having to put in any effort. One of the most useful tools is analytical tools that give information about a user’s behavior in relation to a certain website.

There are many companies, such as Google, producing analytical tools. The main purpose of the analytical tool is the same; however, features and reliability may differ. Some of these tools are available for free while for some one has to subscribe in order to enjoy all the benefits.

The result is presented in different formats including percentages, graphs and numbers. By analyzing the result developed, people can draw a conclusion as to how a user looks at things so that strategies and planning can be done accordingly.

It is a customer driven market today. Companies wish to present things the way customers want them presented. However, in order to hit it right, they need to know what exactly the customers are interested in.

Take an example of an ecommerce website that offers several items on sale. How will it know what items customers are really interested in or from which area it receives maximum customers? Such information is very important for a company in order to grow its business.

It can use analytical tools. By using such tools it will be able to correctly gauge the behavior of those that visit its website. The company will get answers to several questions including:

-          How many people visit its website in a day?

-          Which item are they most interested in?

-          What types of products do people want and at what price?

-          How much time do they spend on the items?

Once the company has all such information it can easily revamp its page. Say it realizes that a huge percentage of its visitors are interested in buying ‘mugs’. In order to improve sales it can put more mugs on sale to give a boost to its revenue. In the same way, if it realizes that it receives maximum number of users from the New York area, it can change its policy to offer special discounts or services for customers in New York City.

Many companies are already using such tools. It is considered a best practice to use these tools. This may also be considered a part of risk management as this is an essential part of every business, especially if it revolves around the internet.

The results derived from such tools are also reliable because the users do not try to misrepresent information, which is a common problem in other techniques of behavioral data analysis. The fact that such information is updated regularly often with live (real-time) responses is an added advantage.

Further reading: Corporate Governance | Audit | Performance Improvement

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