Introduction
This article aims to analyze how climate can influence people's buying behavior. Here we present a Pareto analysis of the climate. Through statistics and data intelligence, we allow you to interpret how climate influences business.
Climate, in general, is characterized by the rainfall, winds, temperature variations and humidity of a place. All these climatic patterns have an effect on human behavior.
Climate Influenced Behavior
Over the decades, people have discovered ways of adapting to different aspects of the climate. These adaptations can mainly be observed during the variations of the four seasons (spring, summer, fall and winter).
In summer, for example, due to the higher temperatures, people tend to wear lighter clothes and go outside for leisure activities, beaches and swimming pools. The opposite can be observed in winter, where, due to the lower temperatures, they tend to wear heavier clothes and seek more enclosed environments, mainly to protect themselves from the cold.
In addition to more widespread influences, studies show that climatic variations even influence people's moods.
In general, "good weather" is defined as clear skies with minimal cloud cover and a reasonable amount of sunlight. "Bad weather", on the other hand, can be described as skies with heavy clouds and minimal sunlight. This is because human beings have different attitudes towards different weather conditions.
On "good weather" days, people tend to have more energy to work on any activity. They spend most of their time outside, tend to behave in a more relaxed manner and are generally more optimistic and confident.
On "bad weather" days, however, most people spend their time indoors, which can even make them more depressed (in more extreme cases of severe winter weather). This is especially true in winter, when people tend to stay indoors due to the excessive cold, eat and sleep more than usual and don't participate in much physical activity.
Climate & Business
It's no surprise that the weather can influence our shopping behavior. Of course, what we buy will be influenced by the weather conditions we experience.
There isn't a huge demand for raincoats in the Sahara desert, and few people rush out to buy ice cream when it's snowing. Rain increases the sale of umbrellas, while in a heatwave, as the temperature rises, so do sales of salads and barbecues. So the weather influences our general shopping behavior.
Climate and the Consumer Goods Industry
A study analyzed the sales figures of a tea and coffee shop. It then compared these figures with the weather over the same period. It concluded that sales were clearly related to the sun.
This same study exposed some participants to artificial sunlight and found that they were more willing than a control group to buy things from a list, including green tea, gym memberships, newspaper subscriptions and airline tickets.
Considering the different influences of the climate on the behavior and choices of human beings, different market sectors create different strategies aimed at greater profitability for their business.
Concern about climate change has, for example, gained the interest of the fashion industry. Due to the variations in temperatures between seasons, new designers have been incorporating climate data when preparing new models, so that they can be attractive as well as adaptable, taking into account different climatic variations.
Research shows that temperature changes in summer and winter have a substantial impact on search volumes for different types of clothing. This has the potential to significantly disrupt sales forecasting algorithms, for example.
Climate and the Entertainment and Tourism Industry
The entertainment sector is also very interested in weather conditions. With an emphasis on tourism, research shows that tourist destinations and travel agencies are affected by the weather in various ways.
All tourist destinations are climate-sensitive to some extent, as they are influenced by the natural seasonality of demand, but they are also affected positively or negatively by climate variability.
This can bring heat waves, unseasonable cold, drought or storms and heavy rain. This can affect not only tourist comfort and safety (and therefore satisfaction), but also the products that attract tourists: snow cover, coral reefs, wildlife, for example.
Climate variability also influences various facets of tourism operations in the region in question (water supply and quality, heating and cooling costs, for example).
Reflecting on the Climate in Your Business
You can identify whether your audience tends to buy more or buy less depending on the weather? Do people look for your product on warmer days? days? Or on colder colder? What if it rainwhat will the behavior of your audience?
These questions are very important for business planning, and can be answered by analyzing the Pareto analysis of climate data.
Through an integrated approach between Digital Marketing, Climate Data and Artificial Intelligence, Pareto seeks to find Insights that can, in a practical way, characterize behavior online of a given audience according to weather conditions
Did you find it interesting? Then take a look below at a practical experiment using Google Ads data from a major national cinema chain, a Pareto client.
Data Intelligence in Practice: Climate and Cinema
Important digital marketing metrics for a major Brazilian cinema chain were analyzed and compared to the climate of the region. In this case, the region analyzed was the city of Rio de Janeiro.
Figures 1 to 3 show the variations in the volume of "Impressions", "Clicks", "Conversions", "Value of all Conversions" (Revenue), "Value of all Conversions over Cost" (ROAS) and the "Cost per Number of Conversions" (CPA) according to temperature ranges for the city of Rio de Janeiro for the cinema chain's audience.
It can be seen from Figure 1 that as the temperature rose in the city of Rio de Janeiro, people tended to seek out the cinema more.
This could be associated with the presence of refrigerated environments offered by movie theaters. Probably aiming for more pleasant temperatures.
Figure 1 - Volume of Impressions (left) and Clicks (right) as a function of the different Temperature classes in the city of Rio de Janeiro.
This behavior can be seen in the number of conversions (Figure 2), which also showed an upward trend at higher temperatures.
Figure 2 - Volume of conversions (left) and Value of all conversions (right) as a function of the different Temperature classes in the city of Rio de Janeiro.
Lastly, there is also a reduction in the cost of carrying out a given conversion (CPA) and, associated with this, an increase in the ROAS (Figure 3).
Figure 3 - Volume of Conversion Value per Cost (left) and Conversion Cost Value per Conversion (right) as a function of the different Temperature classes in the city of Rio de Janeiro.
Conclusion
In this article, we briefly note that climatic conditions directly and indirectly affect the behavior of human beings on various scales.
Both associated with psychological issues and with shopping, fashion, leisure and entertainment, among others.
Through a case study of the cinema chain's audience, we were also able to observe, with 95% statistical confidence, a change in people's behavior as a result of temperature variations. This behavior was observed through the volumes of Impressions, Clicks, Conversions, CPA, Revenue and ROAS.
So, how about applying Pareto's climate analysis to your campaigns? Just talk to our team for more details. If you're already a Pareto client, ask your account manager for more details.
