With more than two billion internet users and counting, the web has created a huge opportunity for businesses to reach customers. But how do you reach them? And how do you know who your target market is?
As it turns out, the answer to these questions isn’t always straightforward. In this article we’ll look at behavioural segmentation, a customer segmentation strategy that can be used to identify people with similar behaviours across different platforms.
We’ll cover what behavioural segmentation is, why it’s useful for business growth and why it differs from demographic and other types of customer segmentation strategies such as psychographic profiling or purchase behaviour analysis.
What is behavioural segmentation?
Behavioural segmentation is a marketing strategy that focuses on how people behave. It’s based on the idea that people with similar behaviour patterns will respond similarly to marketing activities, so it’s important to understand what motivates them and how they make buying decisions.
Behavioural segmentation can be used to further define existing segments or create new ones.
For example, if you have determined that your customers fall into three main groups based on their demographics and past purchase history, you can use behavioural segmentation to determine if there are any differences between these groups in terms of the factors that influence their behaviour. For example:
- What keywords do they use when searching for information about your product?
- How frequently do they visit your website?
- How long do they stay on each page?
- What is their customer journey through the website?
How does behavioural segmentation differ from demographic and other segmentation strategies?
Behavioural segmentation is based on how your customers use your product or service. It’s more accurate than demographic segmentation because it’s about how the customer uses what you provide, rather than who they are.
For example, a customer who buys from you once might have very different needs from someone who buys from you every month. A single purchase might help them solve a problem while repeat purchases can create loyalty.
Why is behavioural segmentation a useful tool for your business?
Segmentation is a useful tool for your business because it helps you understand your customers. A customer’s behaviour, needs and wants are all important factors to consider when trying to determine how best to serve them.
Behavioural segmentation allows you to identify key trends in the buying patterns of various groups of customers; this can be helpful when creating marketing campaigns and deciding on pricing structures.
How can you start using behavioural segmentation in your business?
Now that you’re familiar with the basic principles of behavioural segmentation, it’s time to start using it. The easiest way to do this is by using a tool that automatically segments customers based on their actions and behaviour. This way, you don’t have to manually divide your customer base into groups—the tool does all the hard work for you!
If your company wants a comprehensive understanding of who its customers are so they can personalise their offerings accordingly, then consider using an automated customer segmentation software like ourselves at Personify. These services allow marketers to create highly-customised audience segments based on a number of criteria like demographic data such as gender or location as well as past purchases/behaviours such as e-commerce site visits or product searches.
Using behavioural segmentation will help you grow.
Now you know what behavioural segmentation is, you can use it to grow your business. By using this approach, you’ll be able to increase customer lifetime value and make more money from the same number of customers.
Behavioural segmentation allows you to better understand how different groups of people behave and gives you a way to identify new opportunities for growth by focusing on specific groups.
We hope that this post has helped you understand what behavioural segmentation is, how it can be used, and why it’s a useful tool for your business. If you want to learn more about behavioural segmentation and how it can help your business grow, please get in touch and we our team of experts will be happy to help share their knowledge!