What Is Behavioral Analytics? The Product and Security Meanings

Definition

Behavioral analytics is the study of what people actually do, recorded as timestamped events such as sign-ins, clicks, feature use or purchases, rather than what they say or who they are. Product teams use it to see where users succeed or drop off; security teams use it to learn normal activity and flag accounts acting out of character.

The Merlin team6 min read

Behavioral analytics names two jobs that share one method. A product or growth team uses it to learn which actions lead people to buy, stay or leave. A security team uses it to learn what normal looks like for each account and device, then catch the ones that stop behaving normally. Both start from the same raw material: a log of who did what, and when.

If you searched this from a sales or revenue seat, you probably want the first meaning. The second one is worth knowing too, because vendors use the same phrase for both, and a page about one can read like nonsense when you were expecting the other.

The two meanings side by side

Behavioral analytics in a product asks "where do people get value, and where do they give up?" Behavioral analytics in security, usually called user and entity behavior analytics (UEBA), asks "is this account acting unlike itself?" According to Exabeam's UEBA primer, the analyst firm Gartner named the security category user behavior analytics in 2014 and added "entity" in 2015, so that servers, endpoints and applications get baselines too, not only people.

Behavioral analytics: product sense vs. security sense

Product and customer analytics

Security (UEBA)

Main question

Which actions lead to sign-up, purchase, renewal or churn?

Which users or devices are behaving abnormally?

Raw data

Product events: page views, clicks, feature use, purchases

Sign-in records, device and network logs, file and email activity

Typical output

Funnels, paths, segments, lists of accounts showing buying signals

Ranked anomalies and risk scores for an analyst to investigate

Who reads it

Product, growth, marketing, sales and customer success

Security operations and incident response

Example products

Mixpanel, Google Analytics 4

Microsoft Sentinel UEBA

How behavioral analytics works in a product

Product behavioral analytics is built on events: one record per action, with a name, a timestamp and an ID that ties it to a person. Mixpanel's documentation adds optional properties to each event (the page URL on a page view, the item on an add-to-cart) and recommends object-then-verb names such as "song_played". Google's help page on GA4 events describes an event the same way, as a single interaction like a page load, a link click or a purchase.

  1. Write down the questions first. "Why do trials stall before the first report?" is a question. "Track everything" is not.
  2. Draft a tracking plan. List each event name, its properties and the ID it attaches to. In business software, decide early how a person maps to the company account they belong to.
  3. Instrument and verify. Ship the tracking code, then watch the events arrive. GA4 lets you inspect them live in its Realtime report and DebugView.
  4. Analyze. The usual views are funnels (how many people move from step to step), paths (the routes people actually take) and segments (groups defined by what they did).
  5. Change something and measure again. The analysis only pays off when it leads to a fix, a test or a change in how sales follows up.

How it works in security

Security behavioral analytics learns a baseline for every user and device, then scores departures from it. Microsoft's Sentinel documentation says its UEBA builds behavioral profiles for users, hosts, IP addresses and applications, compares new activity against each profile, against peer groups and against the whole organization, and attaches two scores: an investigation priority from 0 to 10 for single events and an anomaly score from 0 to 1 for patterns over time. Microsoft's own example: a user's first-ever action in Microsoft's Azure cloud gets a high priority score but a low anomaly score, since one-off first actions are common.

Kaspersky's encyclopedia entry lists the inputs as device logs, authentication records, other security tools, email and HR data, and gives examples of what trips an alert, such as an unusual email recipient or a large outbound data transfer.

A worked example for a sales team

Say you sell business software with a free trial, and your reps call every trial sign-up in the order they arrive. Behavioral analytics lets you sort that list by what each trial account has done instead.

  1. Track a handful of events that matter: workspace_created, teammate_invited, integration_connected and report_shared.
  2. Compare last quarter's trials that became customers with the ones that didn't. Suppose the buyers almost always connected an integration and invited colleagues in their first week, while the rest stopped after creating a workspace.
  3. Make those two actions the trigger. A trial account that hits both goes to an account executive that day, with the activity attached, so the first call opens with "I see your team connected the CRM" rather than a cold discovery script.
  4. Run the same logic after the sale. An account whose weekly report_shared count falls to zero before renewal is a reason for its account manager to call.

Accounts picked out this way are often called product-qualified leads, or PQLs: leads qualified by what they do in the product rather than by job title or which marketing emails they opened.

When it helps and when it doesn't

  • It helps when your product or site is digital, the actions you care about can be logged, and enough people pass through to show a pattern.
  • It falls short on the why. Events show that people quit at the pricing page, not whether the price, the wording or a broken button drove them off. Pair it with sales calls, support tickets and user interviews.
  • It's thin for deals that happen mostly offline, or for a handful of large accounts where every buyer is already known by name.
  • In security, CrowdStrike's own overview lists false positives, false negatives, privacy concerns and integration work as real limits. A baseline is only as good as the logs feeding it.

Common mistakes

  • Tracking before deciding what to ask. You end up with thousands of event types and no answer.
  • Inconsistent names. Mixpanel notes that event names are case-sensitive, so "Report Shared" and "report_shared" count as two different events.
  • One event per variation. A separate event for every product or plan makes analysis painful. Use one event and put the variation in a property, as Mixpanel advises.
  • Only tracking individuals in a business product. If events never link to the company account, sales can't see that three people from one prospect are active.
  • Reading correlation as cause. Buyers who invited teammates may have been serious from the start. Test the idea before rebuilding onboarding around it.
  • Skipping consent and privacy. Tracking rules differ by country, and employee monitoring raises its own questions. Check what applies before you collect.

Behavioral vs. demographic and firmographic data

Demographic and firmographic data describe who someone is: title, company size, industry, location. Behavioral data records what they did. A lead score can use both; a product-qualified lead is the case where the behavior alone decides.

Behavioral analytics vs. product analytics

Product analytics is behavioral analytics applied to a product. Behavioral analytics is the wider label: the same approach gets applied to websites, online stores, banking logins and security logs.

UEBA vs. rule-based detection

Rule-based security tools match known bad patterns, such as a sign-in from a blocked country. UEBA looks for activity that's unusual for that particular user or device, so it can raise a flag even when no rule was written for what's happening, such as a valid password being used at odd hours to pull files the owner never touches. Rules stay useful for the threats you already know.

Frequently asked questions

What is an example of behavioral analytics?

A software company noticing that trial accounts which connect an integration in week one usually buy, then routing those accounts to sales first. In security, flagging an employee account that suddenly downloads far more files than it ever has.

Is behavioral analytics the same as UEBA?

UEBA is the security version of behavioral analytics. It applies the same idea, learning normal activity and spotting departures from it, to users, devices and applications on a company network.

What data does behavioral analytics use?

Event data: timestamped records of actions such as page views, clicks, feature use, purchases or sign-ins, each tied to a user or device ID and often carrying extra properties.

How do sales teams use behavioral analytics?

Mostly to prioritize. Product usage shows which trial or free accounts are showing buying signals and which customers are drifting away before renewal, so reps and account managers spend their time where it counts.

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