As a business owner, you need to be aware of all the information you can get about your target audience. With the benefit of technology, it’s possible to target even a single customer out of thousands based on certain observations, analysis, and information you have about him.
While marketing studies have advanced by leaps and bounds and keep pace with advances in technology, some essential elements remain the foundation of all marketing strategies.
Segmentation is an important concept that is at the heart of an effective marketing strategy and Behavioral segmentation is a crucial aspect of it.
What is market segmentation?
Regardless of whether you are selling a product or service, it is crucial that you identify the customer who needs it. Without them, your business would not grow, expand, or even survive.
Before the industrial revolution, the market consisted of regional companies that met local needs. When the transport systems changed in the 19thth In the 19th century, the local transport of goods and services became a reality. Standardization became essential when selling to a larger audience.
As the market expanded, the business owners realized that their customers could be divided into different segments based on their location, age, gender, lifestyle, socio-economic status, etc. As a result, they began to tailor their products and adapt them to different needs segments. For example, automobile manufacturers could introduce different models to address different customer profiles.
The technology entered the fray in the mid-1980s, making it possible to fragment the market even more finely. Marketers could identify and address target groups based on the information gathered through data analysis. Nowadays, digital communication is the channel through which marketers can connect with an individual customer / customer, serve them better, build brand loyalty, predict future behavior and ensure they share their experience within their sphere of influence.
In addition, it is important to know who your customers are and where they are.
Archaeological evidence shows that our Bronze Age ancestors developed trade routes based on geographic markings.
In medieval England, shopkeepers invited privileged customers into the back rooms of the shop while they served travelers through a window in the wall.
This is a strategy that identifies your customers based on their behavior on your website. This makes it one of the cornerstones of the ecommerce business. It goes further than traditional segmentation based on age, gender, location, lifestyle, income, etc.
The customer’s shopping trip is very important for behavioral segmentation. It can be analyzed according to the AIDA model, with attention, interest, desire and action being the main elements. In ecommerce, you also need to consider adoption and advocacy as other important behaviors.
It answers certain important questions a marketer would like to ask the customer in person:
- How did you get on the website?
- Have you visited before?
- Why are you here?
- What are you looking for?
- How many times did they come to your website before buying?
- What would attract them to a higher value purchase?
Variables at play here include the reason for buying, the user’s status (whether regular, occasional, non-user), and the benefits desired.
There are several types of behavioral segmentation that can help create a more integrated, holistic customer profile or person. This data is available at all stages of your customer’s journey from the time they enter your website until they leave the website. At each stage, you can install certain actionable features that will improve your marketing strategy. These features enhance the journey, your engagement, and your ultimate satisfaction.
These behaviors include:
- Occasion / time of purchase
- Behavior before / during / after the purchase
- What advantages are you looking for?
- Brand loyalty
You can group your customers according to their feedback on what characteristics they appreciate in the product / service, how they benefit from it, feedback on actual use, what makes the product unique and what other benefits they get by purchasing / using it.
How data is collected
Marketers can create user profiles based on information gleaned from behavioral segmentation data.
This includes website analytics, cookies on the website, browser / search / purchase history, social media data, login details, IP address, etc.
To do this, your website would need elements like customer relationship management (CRM) software, conversion rate optimization tools, marketing automation, etc. that help send personalized messages to each customer rather than a one-size-fits-all message.
Advantages of behavior segmentation
Implementing a behavior segmentation marketing strategy has several key benefits to the health, growth, and survival of your business.
Instead of sending a broad-based message that is immediately ignored or trashed, behavior segmentation lets you target messages that are relevant and important to that particular customer.
When you have identified target customers based on the observed behavior, you can evaluate the type of services / products that they really need. This enables you to provide bespoke services tailored to specific needs, preferences and budget.
Properly separates users:
Behaviors show whether a user is uninterested, slightly or likely interested, engaged, or well-established. You can separate loyal customers from newcomers to your website, thereby helping to create more accurate user personalities.
A leaner, more streamlined, and streamlined marketing strategy can save you time, resources, and money. Behavioral segmentation helps communicate with the right audience and only connect with really interested customers instead of wasting valuable resources on cold calls.
With the vast amount of data coming in from your site, you can accurately measure the metrics in each behavioral segment. That way, you can properly gauge the success of your marketing campaigns.
New technologies such as responsive design help to react precisely to customer needs and to remedy weak points. It only makes sense that customers who feel valued will in turn develop strong loyalty to your brand.
When you have enough data on customer behavior and how they interact with your business, you can develop the right products that appeal to them. You can expand your customer base with information from behavioral segmentation so that your product line is in sync with their aspirations and purchasing behavior.
One of the greatest advantages of behavior segmentation is the fact that you can use data to predict the future behavior of these customers based on their current shopping, browsing, etc. patterns. This will help you design future marketing strategies, product launches, etc.
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