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What is behavioural analytics?

Using data to build campaign strategies for their users is a pivotal point in the success of an organisation. Going beyond sales, you need to understand what users are looking for (the what and why), and how and when you can provide it to them—what converts a user to a customer. Analysing user behaviours through the user journey within your digital channels provide understanding to this process.

Understanding behavioural analytics

Behavioural analytics is a concept in business analytics that reveals insights into the behaviour of users on your website, e-commerce, mobile app, chat, email, connected product/Internet of Things (IoT), and other digital channels. Each time a user interacts with your digital channels, they are providing crucial signals about their needs and wants, including readiness to buy.

The purpose of behavioural analytics, also known as a form of digital analytics, is to proactively anticipate users’ needs by understanding where they are in the journey, what information or interaction they need next, and what obstacles stand in the way. While there is a variety of data and analytics to achieve this purpose, behaviour data is unique in that it’s concrete, user-generated data that is highly accurate in predicting intent. Moreover, by combining cross-channel behavioural analytics with other types of customer data like past transactions, you gain richer insights that can drive even more personalised experiences.

That’s why behavioural analytics is crucial in growing your business, helping attract new customers—known and unknown—and retain existing customers based on actual interactions and usage.


Dynamics 365 helps predict users’ future behaviours

Get expansive behavioural analytics to build effective strategies and campaigns with Dynamics 365 Customer Insights—a real-time customer platform providing crucial data that helps your team anticipate your users’ wants and needs.

Who needs behavioural analytics?

The beauty of behavioural analytics is that once your team starts using it, anyone and everyone within your organisation—at any level—can utilise its insights. While members across your organisation are able to use these types of analytics, there are certain roles who best benefit from them:


Marketers can use behavioural analytics to build cohort data, helping get the most out of campaigns, optimising customer acquisitions, and maximising retention and conversions. This means they can make more relevant, personalised relationships for engagement by including behaviour analytics with other customer data like transactions and demographics.


Behavioural analytics are where marketers and the sales team connect for a successful strategy. When the marketing team uses that behavioural data that results in successful campaigns, the sales team can prove real return on investment (ROI) from those campaigns and build a bigger, more qualified funnel. Also by following user’s browsing habits and reactions in real time, there are also possibilities to upsell/cross-sell certain products to particular cohorts. A behavioural analytics marketing strategy that targets specific people or segments is sure to result in more sales in higher volume.

Data analysts

Using signals learned through behavioural analytics, data analysts help decipher the full customer journey, comparing user intent to actuality, as well as identify customers at risk of churn vs. high-value, loyal customers. With this knowledge, they conduct real-time user analyses from complex data and empower teams to make data-driven decisions, streamlining workflows and helping make sure time is spent efficiently for important projects.

Customer service

Even after predicting what’s needed, sometimes you miss the mark. Users will let you know, through online engagement—including social channels, online chat, or email—that they aren’t receptive to your marketing strategy. Your customer service team is on the front line of receiving that information. With behavioural analytics, your team can be ready with the right responses and relay that information back to your sales and marketing teams.

Types of user data

Behavioural analytics provides user-level behavioural data of how users react and interact with your digital channels. But first, your team has to discern what website analytics it has gathered and what it means. When accumulating user data across multiple digital sources and devices (cross-channel analytics), there are three types of data needed to transform your raw data into valuable information.

  1. Registered data: Data stored in your customer relationship marketing (CRM) or marketing tool.

  2. Observed data: A synopsis of the user experience and how it interacts with different elements of your website or app.

  3. Voice of the consumer: How consumers feel and the methods they choose to express that sentiment, whether reactively or proactively, online.

Behavioural analytics vs. business analytics

Behavioural analytics is a recent advancement within business analytics, and while they may sound similar, there’s a few key differences. Business analytics, a form of business intelligence, is a process using statistical methods and technologies to analyse past data. Behavioural analytics offers a narrower conclusion by combining two types of technologies: user segmentation and behavioural or event tracking.

Segmentation is based on the traits or data used to bucket users. Though there are several different types of segment categories, behavioural segmentation defines user actions, such as login frequency, time spent, and a general level of engagement.

While business analytics has a broader focus on who, what, where, and when, behavioural analytics presents a more pinpointed prediction of actions, in which seemingly unrelated data points from the user journey are used to extrapolate and determine errors and predict future trends, hopefully resulting in a completed customer journey.

Five steps for successful user behavioural analytics

Implementing behavioural analytics data into your business processes can be time-consuming. To ensure that you’re receiving the right type of insights, you must focus on achieving success through technical, analytical, and strategic tasks. The following five steps are needed to start a user behavioural analytics project:

  1. Choose your achievement metrics, KPIs, and goals.

  2. Define the most desirable user journey, which should satisfy both the user and the business.

  3. Decide which events you need to track based on user flow, highlighting certain events through a tracking plan and revising as necessary.

  4. Set unique user identifiers to follow individuals throughout their journey for each visit.

  5. Implement behavioural data analytics software and begin event tracking in your minimum viable product (MVP), while consistently updating the tracking plan and analytics service to fit your goals as you go.

After testing web apps and smart devices to ensure strategies and tracking are working correctly, you can begin to collect real user data and begin to analyse for future business strategies.

Getting started with behavioural analytics

Behavioural analytics offers an opportunity for you to acquire, understand, and retain your users while simultaneously promoting your business. Understanding the why will provide a full picture of your users, giving your decision makers more entry points through digital channels to optimising the user experience for a better customer journey. Dynamics 365 Customer Insights provides your team expansive behavioural analytics, allowing for accurate predictions about your users’ most likely future behaviours with custom or turkey options. By optimising the user journey with cross-channel analytics, your behavioural analytics tool will be able to get a 360 view of your what your users need, want, and demand.