Behavioral Segmentation: A Comprehensive Guide
Team_Eden | 2023-08-01
Behavioral segmentation is a powerful marketing strategy that allows businesses to understand and effectively target their audience. In this article, we will delve deep into what behavioral segmentation is, why it's important, how it can be implemented, and concrete examples of its successful use. And promise, no boring marketing jargon, just clear and precise information with a dash of humor!
What is Behavioral Segmentation?
Behavioral segmentation is a form of marketing segmentation that divides customers into groups based on their behaviors, purchasing habits, and usage of products or services. It allows businesses to understand how customers interact with them and answer questions like "How many interactions does a customer need before they become a customer?" or "What kind of message will attract a customer from a certain behavioral group?"
Behavioral segmentation is based on the idea that a customer's behavior is the best predictor of their future behavior. In other words, if you know how a customer has acted in the past, you can predict how they will act in the future and tailor your marketing accordingly.
Why is Behavioral Segmentation Important?
Behavioral segmentation offers several key benefits for businesses:
- Identifying the most engaged users: Understanding who your most profitable customers are and what drives them can help you fine-tune everything from your operations to your marketing strategies.
- Providing personalized experiences: When you know the needs, wants, and demands of your target market, you're more likely to hit the mark when creating a product or marketing campaign.
- Saving money: With behavioral segmentation, you'll end up sending the right campaign to your target market, thus reducing the cost of your marketing campaigns.
- Building brand loyalty: Customers who aren't bombarded with irrelevant ads or messages will feel good about your brand.
- Predicting behaviors: With the help of behavioral data, it becomes easy to predict how they will buy (or behave) in the future.
Moreover, behavioral segmentation can help identify growth opportunities. For example, if you find that a certain group of customers regularly uses a specific product or service, you might look to develop that product or service or create new products or services that cater to their specific needs.
Types of Behavioral Segmentation
There are several types of behavioral segmentation, including:
- Based on benefits: You can divide customers based on the benefits they seek. For example, if you sell beauty products, you can segment your customers based on whether they're looking for anti-aging products, products for sensitive skin, natural products, etc.
- Based on customer loyalty: When you use loyalty-based segmentation, you want to find out who your regular customers are, understand their needs and behaviors. This can help you develop loyalty programs that reward these customers and encourage them to continue buying from you.
- Time-based segmentation: In this case, your customers are more likely to interact with your brand during certain occasions or at specific times. For example, some customers might be more likely to buy gifts during the holiday season, while others might be more likely to buy workout clothes at the start of the year, when they're motivated by New Year's resolutions.
- Based on purchasing behavior: In this type of segmentation, the company needs to observe the user's behavior when they're trying to make a purchase. This can include things like how long they spend researching a product, the reviews they read, the questions they ask, etc.
Each type of behavioral segmentation has its own benefits and can be used to achieve different goals. The important thing is to choose the type of segmentation that best fits your goals and audience.
How to Use Behavioral Segmentation for Your Business?
If you can do behavioral segmentation well, you'll be able to give people exactly what they want. Here's how:
- Audience research: Understand your prospects and customers by conducting interviews, digging into your Google Analytics data, sending out surveys, using commercial data, identifying trends, etc.
- Create buyer personas: A buyer persona is a fictional representation of your most ideal customers. It details their pain points, goals, business information, etc.
- Map the buyer's journey: Once you have a clear idea of who your customers are, you can map out the journey your customer will take when they reach out to you.
- Create behavioral marketing campaigns: Group your audiences into different categories so you can send them the right marketing campaign.
Implementing behavioral segmentation might require some effort, but the benefits are worth it. With a better understanding of your audience, you can create more effective marketing campaigns and improve customer engagement and loyalty.
Examples of Companies Using Behavioral Segmentation
Many leading companies use behavioral segmentation to improve their marketing and customer engagement. Here are a few examples:
- Amazon: Amazon, one of the world's largest retailers, segments its customers based on their actual purchasing behavior. They even managed to get me to buy a robot vacuum cleaner I didn't know I needed!
- Uber: Uber uses behavioral segmentation to understand the travel habits of its users and offer them personalized offers. They know I can't resist a 20% discount on my Friday night ride!
- Starbucks: Starbucks uses behavioral segmentation to offer personalized rewards to its customers based on their consumption habits. They know I'm a coffee addict and they take advantage of it!
- Spotify: Spotify, one of the world's most popular music streaming platforms, is the number one choice for music lovers due to its obsession with data, particularly user data and behavior. They even created a playlist for my dog, that's saying something!
- Fitbit: Fitbit uses behavioral segmentation to encourage its users to reach their fitness goals based on their exercise habits. They know I'm more likely to exercise if I receive a challenge notification from my friends.
Each company has its own way of using behavioral segmentation, but the common theme is that they all use data to understand their customers and improve their marketing.
How EdenPersona Can Help Your Business with Behavioral Segmentation
EdenPersona is an AI-based persona generation solution that can help you understand your target audience and create accurate buyer personas. With EdenPersona, you can regularly refine your persona by editing it and providing concrete data about your prospects and customers.
EdenPersona uses AI to establish a psychological profile, history, photo, etc. based on the information provided by the user. This can help you get a more accurate picture of your target audience and create more effective marketing campaigns.
Moreover, EdenPersona is user-friendly, accessible, and fun to use, making the process of creating buyer personas enjoyable and engaging. To learn more about how EdenPersona can help your business, read this blogpost.
Behavioral segmentation is the process of dividing your customers based on the behavior patterns they organically exhibit when interacting with your business. With the right intent and methodology, businesses can strike gold using behavioral segmentation data. If you can add artificial intelligence and machine learning to this mix, your marketing will be even more powerful.
And remember, as the saying goes: "He who knows the enemy and himself well will not be defeated easily". So, ready to wage your next marketing battle with behavioral segmentation?