Behavioral segmentation aids marketers in developing insights into customer behavior. It enables them to understand how customers make purchasing decisions. Based on the behavior a potential customer exhibits before, during, and after their purchase, they are segmented into groups.
The division of customers into groups or segments is based on various metrics such as product knowledge, preference, brand loyalty, attitudes, usage, and interaction.
Using behavioral segmentation in customer marketing can significantly enable the stakeholders to elevate and leverage current customers’ experiences. It helps choose an ideal customer marketing strategy, establish the right metrics, and target the right customer to promote the brand. Behavioral segmentation is a marketing segmentation type that encompasses the features of the other categories.
To efficiently segment the customers based on their behavior in the customer journey, one also needs to consider their demographic, psychographic, geographic details. With this, the marketer can take a mapped leap and strategically align their brands to the needs and demands of the customer group that displays the best conversion and retention rate.
Companies need to develop a proactive customer behavioral segmentation marketing strategy that will enable them to think beyond customer acquisition to improve renewal, retention, and conversion rates. Segmenting customers as per their behavior helps to understand and predict customer behavioral patterns, prioritize the correct customer group, achieve personalization, and improve overall marketing performance.
In addition, behavioral segmentation can effectively inform the marketing strategy to increase product usage, target customers with cross-sell or upsell offers and deliver the right content and communications. This article further explains how customer marketing and behavioral segmentation converge and helps to maximize relationships and revenue from your customers.
Find Conversion-Ready Audience
Behavioral segmentation can inform your marketing strategy and enable you to discover the conversion-ready audience effectively. It helps to assess and analyze the market and customers in terms of their product-related behaviors.
The potential segmentation according to product-related behaviors allows the stakeholders to move away from a broad range and narrow it down to focus on a particular segment that is more likely to respond to the marketing operations and drive down the sales funnel. Hence, it becomes easier for companies to find, qualify, and sell their products to potential buyers with behavioral segmentation.
Align The Brand With Customer’s Demands
Behavioral segmentation to research the target market and customers enables the stakeholders to understand and define which benefits, features, values, use cases, or problems influence the customers’ decisions. The buyer’s journey is a three-stage process consisting of awareness, consider termination and decision.
In the primary stage of this journey, the customer becomes aware of their problem, needs, or demands. Using behavioral segmentation, marketers can understand and address the pain points and identify the customers’ problem. Finally, in the consideration phase, the customer evaluates the various options available in the marketplace.
The stakeholders can deploy a behavioral segmentation strategy to address specific questions to determine if the product or service offering is clear and understandable. Based on the customer exhibit’s behavior while weighing different options, one can decide if the marketing operation is relevant.
Identifying what influences their decisions can help the company align the brand to the customer requirements and enable them to make a favorable decision in the final stage of the customer journey. Behavioral segmentation helps to rightly tap on the buyer’s motivation and gain more insight into your customer’s decision-making process.
Product or service usage helps to segment customers based on their behavior. For example, analysis of purchasing frequency provides an overview that helps break down the customer base and create a customer group using the number of purchases as the differentiating factor.
Thus, it helps to develop a better understanding of the customer’s buying habits. In addition, product/service usage analysis helps, such as average basket size and total revenue per segment helps to distinguish between groups that include high-value customers.
The usage-based behavioral segments also provide insights into why certain types of customers become heavy or light users. Hence, behavioral segmentation is of paramount importance in customer marketing as it helps to monitor changes in customer usage behavior.
Integrating behavioral segmentation enables marketers to adopt a customer-oriented approach. It helps to develop targeted and impactful strategies to tailor product/service to customer’s needs. Moreover, behavioral segmentation helps to gauge customer satisfaction and analyze their feedback. Customer feedback helps to define the negative and positive impact that the brand creates in the niche market.
It enables marketers to determine what drives brand loyalty, identify their most loyal customers, and include proper approaches to optimize their customer experience. Engagement is a valuable metric that helps map the customer journey, and behavioral segmentation is the right tool to carry out this operation. It helps to measure customer behavior and engagement level in both pre-purchase and post-purchase classes.
These are some of the essential benefits which behavioral segmentation can introduce in customer marketing. It enables companies to rightly identify and understand the target customers and use an efficient, optimized strategy for customer acquisition and retention.