at the very least, behavioral segmentation offers marketers and business owners a more complete understanding of their audience, thus enabling them to tailor products or services to specific customer needs. behavioral segmentation allows marketers to optimize their positioning and marketing messages toward the customer data at hand. this form of behavioral segmentation provides insight into the buying stage that your customer might be in, their role in the purchasing process, the obstacles they are facing, the incentives they’re most likely to respond to and much more. grouping customers using this form of segmentation involves monitoring a customer’s purchasing behavior to establish a pattern so that you preempt the targeting process.
when babycentre investigated what drove the highest levels of traffic to its website – the chatbot or email marketing – it revealed that the messenger bot recorded a read rate of 84% and click-through rate (ctr) of 53%. olay did the same when data from the advisor revealed that many customers were seeking retinol based products, and the subsequent lack of retinol products in its range was contributing to the brand losing custom. all in all, gaining a comprehensive idea of the stage your customer is in, as well as the touchpoints they interact with, allows you to provide more relevant and timely communication that can lead to higher conversion rates. by segmenting your users by their behavioral data, you gain a more comprehensive look at how you can adjust your messaging, brand, marketing materials, and ultimately products or services in order to stay ahead of the competition and reduce your customer churn. the four main types of behavioral segmentation are based around purchase behavior, occasion-based purchases, benefits sought, and customer loyalty.
a big reason being that many companies depend solely on traditional approaches, such as geographical and demographic segmentation. behavioral segmentation divides consumers according to behavior patterns as they interact with a company. dividing the market into smaller segments, each with a common variable, allows brands to use valuable time and resources more efficiently. this means two prospects may look identical in terms of their demographic makeup, but could have very different values regarding the benefits and features that are most important to them: so if you have several customers all seeking the same product for a different primary benefit — and you message all of them about the same benefit — you could be missing the mark with everyone else, wasting your time and budget.
to improve that accuracy, you must leverage all of their behavioral data across various touchpoints and channels so that you can build weighted algorithms based on patterns of behavior over time, like this: this prospect is currently in the consideration stage, but their behaviors occur in utterly random order, not in a linear fashion from stage to stage. customer loyalty goes hand-in-hand with some of the other behavioral segments, such as purchasing behavior, usage, and timing. just remember, the likelihood of retaining customers depends mostly on where they stand as users, to begin with — and the more regular users you have, the better. as with the other types of marketing segmentation, behavioral segmentation gains a better understanding of who your target customer really is.
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