How to apply Behavioral Segmentation to improve Marketing performance

Behavioral segmentation is one of the four main types of market segments. Unfortunately, it is often overlooked, little noticed.

Meanwhile, demographic, geographic, and psychographic segmentation are often the preferred methods by marketers. But to create a complete marketing strategy, never ignore the behavioral segment.

What is behavioral segmentation?

Behavioral segmentation is a type of market segmentation that groups audiences, leads, and customers according to their actions and behaviors.

While demographic and psychographic segmentation consider customers Who is, behavioral segmentation considering customers doing what.

Why is behavioral segmentation useful?

Businesses use behavioral segmentation to improve marketing effectiveness, by using “tacit truths” to personalize the customer experience, based on needs, preferences, and stage of the buying process. row .

Behavioral segmentation allows you to:

  • Understand customers’ attitudes, feelings, likes and dislikes.
  • Identify the customers most likely to buy.
  • Visualize when (when) and what products (what) customers want to buy.
  • Create a variety of relevant content, messages and marketing campaigns.
  • Observe changes and growth patterns to develop marketing plans.
  • Identify buying trends and explore niche markets.

By understanding customer operating patterns, businesses can better respond to their customers’ needs and desires, identify the best marketing opportunities, and develop solutions that are more appropriate for them.

6 types of behavioral segments

There are many types of behavioral segmentation, but the six below are the most commonly used and suitable for most businesses.

  1. Buying habits
  2. Customer journey stage
  3. Seeking benefits
  4. Customer Status
  5. Brand interaction
  6. Spending habits

1. Buying habits

behavioral segmentation - buying habits
Customers’ buying habits are complex

Buying habits refer to how customers approach the buying process. There are many ways to categorize buying habits (such as buying by price, or buying safely), but according to Henry Assael, a professor of marketing at NYU, he lists four main categories:

  • Complicated: When customers make a purchase but don’t know which brand or product to choose, they will browse and browse through a wide range of products to choose from. In short, they actively research and shop for the best.
  • Looking for variety: When customers are satisfied with their brand but want to try other options. In fact, customers don’t need to try another brand, they simply love discovering new things. In short, they are satisfied with their purchase but are still open to other options.
  • Reduce conflict: When customers are happy with their brand, but they know other options might be better. They are conflicted about leaving their brand and trying something new. In short, they’re satisfied with their purchase but still think there’s something better out there, despite being a little apprehensive about the change.
  • Habit: When customers are familiar with and satisfied with the brand. They will keep coming back to the brand without giving it much thought. In short, they are loyal to their brand and do not consider other options.

2. Behavioral Segmentation – Customer Journey Stage

behavioral segmentation - customer journey stage
Customers care too much, customers buy too little

The customer journey stage refers to where a customer is in the buying funnel and what they’re doing there. This type of behavioral segmentation complements a marketing strategy that builds a larger customer lifecycle.

  • Awareness: The customer perceives that they have a problem or need.
  • Interactive: Customers research potential solutions/products that can help them.
  • Evaluate: The customer knows what solution/product they want. They consider which brand is best.
  • Purchase: Customers know exactly what they want and they are willing to buy.
  • After purchase: The customer has made a purchase and needs post-purchase support. Or a reason to buy again.

3. Behavioral Segmentation – Search Benefits

behavioral segmentation - search interest
Need to understand the benefits that customers are looking for

Search interest refers to customers shopping for products based on the features and solutions that matter most to them.

Through the products that customers choose, you can know the benefits they are looking for.

For example, if customers repeatedly choose the low-cost option, you might conclude that price is most important to them.

If a customer participates in a webinar about a product that could save them time, but ignores the performance improvement, it follows that time savings and streamlined workflow are most important to them. surname.

4. Behavioral Segmentation – User State

behavioral segmentation - user state
Customers are diverse and complex

User status refers to the amount of time a customer spends on a product, as well as how often they use it. In general, you can categorize customers by their level of engagement as follows:

  • Many users: Customers who spend the most time with the product, using it often. They are the most loyal to your brand and will most likely buy from your brand again.
  • Average user: Customers use the product intermittently. They use it occasionally, but not often.
  • Light user: Customers rarely use your product. They can be special occasion customers, one-time users or people who like variety who want to experience many different brands.

5. Behavioral Segmentation – Brand Interaction

behavioral segmentation - brand interaction
Behavioral segments that list different types of brand interactions

Brand engagement refers to how customers interact with your brand. This type of behavioral segmentation observes interactions both online and offline, including activities that demonstrate a customer’s level of interest in a brand, such as:

  • Frequency of customers visiting the store
  • How often do customers buy?
  • Products the customer has purchased in the past
  • How often do customers visit the website?
  • Subpages customers visit on the website
  • What webinar did they attend or what material did they download?
  • Frequency of customers interacting with Fanpage
  • Content customers interact on Fanpage

6. Behavioral segmentation – Spending habits

behavioral segmentation - spending habits
Behavioral segmentation including customer spending habits

Spending habits refer to customers’ shopping habits in what situations, providing detailed information on how customers spend their money, where they buy, and when. Spending habits can divide customers into groups:

  • Buy online vs offline (directly)
  • Always use coupon vs rarely use coupon
  • Using membership card vs no membership card
  • Stop by to buy during promotion vs random visit

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