Whether we like to admit it or not, our backgrounds, habits, and emotions play a huge role in our behavior.
Many people have daily habits that compel them to do the same thing day in and day out. If you are a coffee drinker, for example, you know the impulse and daily requisite of that morning ritual. As marketers, we want to understand who our metaphorical daily drinkers are and separate them from those who consume less regularly.
Behavioral segmentation isn’t about just recognizing that people have different habits, it’s about optimizing marketing campaigns to match these behavioral patterns with a particular message.
In this article, we cover the Colombia Phone Numbers List basics of behavioral segmentation and how marketers can use these strategies to reach their business goals.
Continue reading or jump to our infographic with examples and tips for behavioral segmentation in your mobile marketing.
What is Behavioral Segmentation?
what is behavioral segmentation post image definition
Behavioral segmentation is the process of sorting and grouping customers based on the behaviors they exhibit. These behaviors include the types of products and content they consume, and the cadence of their interactions with an app, website, or business.
As marketers, we often walk a tightrope separating psychology and business. Most often, we bring our marketing theories of how customers will respond to a marketing campaign. Behavioral segmentation is the observation of each customer’s actions for marketers to then send their tailored messaging.
Once users are identified by their specific behavior, mobile marketers can target messages and campaigns specifically tailored to these audiences.
Why is Behavioral Segmentation Important?
Once users are identified by their specific behavior, mobile marketers can target messages and campaigns specifically tailored to these audiences. The benefits of behavioral segmentation include:
01. Personalization: Behavioral segmentation doesn’t just tell you what product or service a certain group of customers likes. It helps you understand what channels they frequent and what type of messaging they respond to, so you can boost your conversions.
02. Budget allocation: Since you know which segments spend the most and how they spend, you can better allocate your efforts to target them.
03. Forecasting: Looking at each segment’s patterns, you can identify trends and more effectively plan for the future.
Behavioral Segmentation Examples
Some of the most common nuances of behavioral segmentation boil down to when users become customers (acquisition), how they use the app (user journey), how frequently they use the product (engagement), and how long they continue to use the product (retention).
behavioral segmentation explanation with an illustrated headshot and up close use of mobile app on phone
Acquisition, engagement, and retention are all important factors to keep in mind when analyzing customer behavior. Understanding the following ways your users can interact with your product will help you accomplish a sustainable and constructive behavioral segmentation strategy.
01. Purchasing and Usage Behavior
Let’s use your ride-sharing app of choice as an example. A working professional uses the service to commute to and from the office Monday through Friday. On weekends, however, the user has the extra time needed to drive, park, and walk to their destination, so they never use the service then.
Understanding the behavior of this user, the ride-sharing service could target discounts on the weekends to incentivize usage on days they otherwise wouldn’t use the app.
Most companies recognize the power of tracking the purchase, usage, and consumption of their product as a means of forecasting demand. Segmenting customers based on their purchase behavior is essential to understanding when your marketing will be most effective.
02. Occasion Purchasing
This component of behavioral segmentation considers the timing within a customer’s life, year, or day as a determinant of making a purchase.
Life milestone purchases such as an engagement ring or house; seasonal purchases like holiday decorations and gifts; and daily purchases like coffee or food are all variations of occasion purchasing.
Starbucks uses behavioral segmentation to target their regular morning customers with an incentive to get them back in for another purchase later in the day. Since these regular users will likely have an afternoon coffee on occasion, Starbucks uses email marketing and push notifications within their mobile app to offer happy hour events.
03. Benefits Sought
Other differentiating factors of behavioral segmentation are the benefits different users seek from an experience. Continuing with the Starbucks example, some customers are compelled by the convenience of ordering through the mobile app and their beverage being prepared and paid for when they come in to pick it up.