The Ultimate Guide to Understanding Behavioural Segmentation (2024)
The what, how and why of Behavioural Segmentation - everything you need to know!
Chapter 1: Introduction to Behavioural Segmentation
Behavioural segmentation is a marketing strategy that divides consumers into groups based on their behaviour.
This can only be done by looking at a variety of factors, such as purchase history, website activity, and social media engagement.
By understanding how customers behave, businesses can create more targeted marketing campaigns that are more likely to be successful.
Chapter 2: Key Components of Behavioural Segmentation
They are five key components of behavioural segmentation:
- Customer behaviour patterns: This refers to how customers interact with a business, its products, and its services. This can include things like purchase history, website activity, and social media engagement.
- Purchasing behaviour: This refers to how customers feel about a business, its products, and its services. This can include things like their level of satisfaction, their willingness to recommend the business to others, and their likelihood of returning to the business.
- Usage behaviour: This refers to how customers use products or services. This can include things like how often they use them, how long they use them for, and how they use them.
- Attitudinal behaviour: This refers to how customers feel about a business, its products, and its services. This can include things like their level of satisfaction, their willingness to recommend the business to others, and their likelihood of returning to the business.
- Benefit sought: This refers to the reasons why customers buy products or services. This can include things like the need for a product or service, the desire for a product or service, and the value of a product or service.
Chapter 3: Methodologies for Conducting Behavioural Segmentation
There are a variety of methodologies that can be used to conduct behavioural segmentation.
Some of the most common methodologies include: • Surveys: Surveys can be used to collect information about customer behaviour, such as their purchase history, website activity, and social media engagement. • Focus groups: Focus group can be used to gather qualitative information about customer behaviour, such as their attitudes, beliefs, and motivations.
• Observational research: Observational research can be used to collect data about customer behaviour, such as how they use products or services and how they interact with a business.
• Analytics: Analytics can be used to collect and analyse data about customer behaviour, such as purchase history, website activity, and social media engagement.
Chapter 4: Use Cases of Behavioural Segmentation in Business
Behavioural segmentation can be used in a variety of businesses, including:
• Retail: Retailers can use behavioural segmentation to target customers with specific products or services. For example, a retailer might target customers who have purchased similar products in the past with a new product launch.
• Healthcare: Healthcare providers can use behavioural segmentation to target patients with specific health information or services. For example, a healthcare provider might target patients who have been diagnosed with a certain condition with information about treatment options.
• Financial services: Financial services providers can use behavioural segmentation to target customer with specific products or services. For example, a financial services provider might target customers who have a certain income level with a savings account offer.
• Telecommunications: Telecommunications providers can use behavioural segmentation to target customers with specific products or services. For example, a telecommunications provider might target customers who have used a certain amount of data in the past with a data plan upgrade offer.
• Travel and hospitality: Travel and hospitality businesses can use behavioural segmentation to target customers with specific products or services. For example, a travel and hospitality business might target customers who have visited a certain city in the past with a discount on a hotel stay in that city.
Chapter 5: Benefits of Behavioural Segmentation
There are many benefits to using behavioural segmentation in business. Some of the most important benefits include: • Improved targeting and personalisation: By understanding how customers behave, businesses can create more targeted marketing campaigns that are more likely to be successful. For example, a business might target customers who have purchased a certain product in the past with a discount on a related product.
• Better customer understanding: By understanding how customers behave, businesses can better understand their customers' needs and wants. This can help businesses to improve their products and services, and to create a better customer experience.
• Increased ROI from marketing efforts: By targeting marketing campaigns more effectively, businesses can improve their ROI from marketing efforts. This is because they are less likely to waste money on marketing campaigns that are not reaching the right people.
• Optimised product development: By understanding how customers behave, businesses can optimise their product development process. This can help businesses to create products and services that are more likely to be successful.
Chapter 6: Challenges and Limitations
There are a few challenges and limitations to using behavioural segmentation. Some of the most common challenges include: • Data collection and quality: Collecting data about customer behaviour can be challenging, and the quality of the data can vary. This can make it difficult to create accurate and effective segmentations. • Segmentation accuracy: : Even with accurate data, it can be difficult to create segmentations that are perfectly accurate. This is because customers' behaviour can change over time, and it can be difficult to predict how they will behave in the future.
• Integration with other marketing offers: Behavioural segmentation can be difficult to integrate with other marketing efforts, such as email marketing and social media marketing. This can make it difficult to create a cohesive marketing strategy.
Chapter 7: Future of Behavioural Segmentation
The future of behavioural segmentation is bright. As business collect more data about customer behaviour, they will be able to create more accurate and effective segmentation. This will allow businesses to target their marketing campaigns more effectively, and to improve their ROI from marketing efforts.
Conclusion
Behavioural segmentation is a powerful marketing strategy that can help businesses to understand their customers and to create more effective marketing campaigns. By understanding how customers behave, businesses can create more targeted marketing campaigns that are more likely to be successful.
Here are some tips for businesses that are considering using behavioural segmentation:
• Start by collecting data about customer behaviour. This can be done through surveys, focus groups, observational research and analytics.
• Use the data to create segmentations. This can be done by dividing customers into groups based on their purchase history, website activity, social media engagement and other factors.
• Target marketing campaigns to specific segments. This can be done through email marketing, social media marketing, and other channels.
• Measure the success of marketing campaigns. This can be done by tracking website traffic, sales, and other metrics.
By following these tips, businesses can use behavioural segmentation to improve their marketing efforts and to achieve their business goals.