When we talk about behavioral segmentation, we are simply talking about the act of grouping customers based specifically on how they relate as consumers when making purchasing decisions. When segmenting customers, marketers look at behaviors such as their level of loyalty, readiness to make a purchase, the frequency of interactions with a brand and many other factors.
The main aim of behavioral segmentation lies in understanding customers on three key things which include;
- Their purchasing habits
- Their usage habits
- Their spending habits including time, money and other resources.
Behavioral segmentation is a marketing strategy that lays emphasis on where prospective customers are shown content. It then aims at targeting advertisements that are based on previously known behaviors that customers have.
The strategy of behavioral segmentation can be particularly very important because if the content delivered to prospecting clients is more personalized, it may lead to making a positive impact that can lead to a lot of conversions.
Making User Profiles
To implement the concept of behavioral segmentation, we must first create what we call user profiles. These are profiles that are constructed on the basis of many factors including; website analytics, cookies, browsing history, search history, social data, login details, IP addresses, App data and much more.
To have all the data collected turned into something useful, it must be compiled with the use of a dedicated software. We then employ the use of marketing automation and customer relationship management to create a working behavioral segmentation program. The use of behavioral segmentation can be particularly effective in enabling a marketer move beyond the normal guessing marketing practices. It aims at targeting personalized marketing messages that are poised to convert better.
Why Behavioral Marketing
The main benefits of behavioral marketing lie on relevancy, efficiency, and ROI. When we talk about relevancy, behavioral marketing allows marketers to send only relevant and targeted advertisements to prospects. This process of marketing becomes very efficient with increased conversion rates. Behavioral segmentation continues to stand out when it comes to delivering more ROI as compared to other traditional methods of marketing.
The main goal of segmenting your prospects according to behavior lies in identifying various segments based on behavioral factors. You look at ways of determining how your products and services meet the needs of each group of customers. After that, you can tailor your products and services to meet the needs of your customers. You can equally tailor your marketing initiatives and campaigns to reach a specific segment that is most likely going to make a purchase.