Behavioral segmentation is a kind of segmentation that groups customers according to their behavioral patterns when interacting with a brand or retailer.
Behavioral segmentation uses variables that are often changing. The variables can include customer needs, moods, and time of the day or year, among others. In contrast, other types of segmentation such as geographic and demographic use attributes that are more constant.
Types of Behavioral Segmentation
The following are among the customer behaviors used as a basis in grouping shoppers:
Customers use different justifications to arrive at a purchase. They can be motivated by price, value, necessity, reviews, and more. Once customers are grouped according to motivation, brands can tailor their efforts in creating just the right messaging that will lead to conversions. It can be promoting discounts and free shipping for those concerned about their budget. Another example is showcasing user-generated content from satisfied customers for those who need a little more convincing.
There are visitors who come to your website and purchase in anticipation of certain events or during seasonal sales. To segment customers based on occasion or time, brands will have to observe the pattern that emerges during particular calendar days or occasions and when the customer journey is completed. For instance, shoppers can be grouped based on public holidays and important personal events.
Customers can be divided based on how often they are using or purchasing your product. It can be an indicator of how likely they are to return for another purchase. It can also provide insights into why usage varies among users. Marketing efforts can be customized to attract high-frequency users and others with a similar usage pattern who are yet to discover your brand.
Brands can group shoppers based on customer loyalty. This segment can include repeat customers and site visitors as well as members of a rewards program. By grouping based on loyalty, brands and retailers can create experiences just for loyal shoppers and identify their behavioral patterns. Remember, this group is not only relevant for consistent sales but is also particularly helpful in generating positive feedback that might entice new customers.
Why is it Important?
Behavioral segmentation matters as it makes marketing more cost-effective. Through it, brands observe and study trends among certain groups, and consequently adjust their marketing efforts based on their findings. You can allocate your resources more effectively based on the levels of engagement a visitor has with your brand and website.
Brands can also refine their personalization efforts. By observing behavioral patterns, you can find means to resonate more with customer needs and concerns. Personalization brings about desirable results, such as a frictionless customer experience and lowered cart abandonment. It can also boost brand loyalty and increase customer lifetime value because shoppers do remember brands that treat them well and prefer them over the competition.