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Behavioral segmentation is not only about identifying the people who have different mindsets, it’s an activity of optimizing marketing campaigns to match the behavioral patterns (habits, emotions, and backgrounds) with a specific message.
In this blog, let’s discuss the basic concepts of behavioral segmentation and how marketers use it to expand their business or reach their goals.
What is Behavioral Segmentation?
It is the process of classifying and grouping consumers based on the behaviors they show. These behaviors cover their interactions with an app, website, or brand. It lets businesses categorize consumers into different groups based on their knowledge of, use of, or response to a brand or product.
The idea is to recognize customer segments that allow you how to solve the needs of a group of customers, identify opportunities to optimize their journeys and evaluate their value to your business.
What are the Benefits of Behavioural Segmentation?
Once customers are grouped together based on their behavior, mobile marketers can target campaigns and messages specially customized to such audiences. It includes the following benefits:
1. Personalization: – Behavioral segmentation indicates what type of product a group of customers like. It also, helps you understand what channels they regularly use and what type of messages they like or respond to, so you can improve conversions.
2. Budget allocation: – As you know which segments bring good results, you can allocate a budget and put enough effort to target them.
3. Forecasting: After looking at the patterns of all segments, you can find out trends and come up with a proper plan.
4. Performance: Observe the changes in customer segments and keep track of the performance against goals.
You have to consider the factors like acquisition, user journey, engagement, and customer retention when analyzing consumer behavior.
What are the Four Types of Behavioral Segmentation?
Listed below are the 4 types of behavioral segmentation, which have evolved to take on new applications, and use cases.
Purchasing and Usage Behavior: – This segmentation is related to finding out new trends and analysis of how various customers behave during the course of making a buying decision.
It helps you identify the role the customer plays in the buying process, the difficulty of the buying process, etc.
It also involves the tracking of purchase, usage, and consumption of the business product as a forecasting demand.
Occasion or Timing: Occasion or timing-based segments include both personal or universal occasions.
Universal occasions: The best examples for universal occasions are holidays, and seasonal events, where customers are more likely to make purchases.
Personal occasions: Personal occasions are focused on individual consumers, but it’s not regular and spontaneous, so it’s not easy to predict. An example of this is a customer attending his/her friend’s wedding.
Benefits sought: Other notable factors of this segmentation are the advantages or benefits various users expect from an experience.
The best example is customers who buy beauty cream for various reasons:
a) Skin brightening
b) Remove dark spots
c) Protecting skin from sun rays
This is just an example of B2C. For B2B, the benefits sought might be ease of use, accuracy, special features, and integration with other tools.
With this analysis, it’s possible to increase conversion rates and understand the targeted audiences.
Customer Loyalty: For any company, loyal customers are a valuable asset. No company wants to lose them as they have the highest LTV. Hence, many marketers establish a rewards program to reciprocate loyalty among their customers.
Moreover, behavioral segmentation strategies also include:
• Customer satisfaction
• Engagement level
• User status
Using the 4 behavioral segmentation methods explained above, you can allow consumers to reach their goals, improve ROI, and build a strong knowledge of your consumer base.