6 Behavioral Market Segmentation Examples

When it comes to marketing automation, few techniques are as beneficial as segmentation, which allows you to categorize your leads based on data that you’ve collected on them. This, in turn, allows you to personalize their experience more, thereby making your nurturing efforts more effective. However, normal segmentation is based on who the user says they are, often provided by the information they fill out in your opt-in forms.

Another effective form of segmentation you should look into is behavioral market segmentation, which segments your leads based on how they behave. This behavioral data is collected via analytics. The following are six examples of behavioral market segmentation that you can benefit from:

1. User Purchasing Behavior

Basic purchasing behavior can be broken down into four categories: complex (when the user is highly involved in both the purchasing and decision-making process between two very different brands), variety-seeking (in which the user isn’t that involved in the purchasing process but may choose a different brand just to try it out), dissonance-reducing (in which the customer needs to make a major purchase but there’s not much difference between the products they’re considering), and habitual (in which little involvement is needed and the product doesn’t vary much from brand to brand).

These behavioral market segmentation categories make it easier to identify what users are more likely to make a purchase and how you can make your product and brand stand out from the competition.

2. Occasion-Based Behavior

User behavior is sometimes defined by special occasions. For example, consumers often make more purchases around the holiday season or for special events in their own lives, such as birthdays and anniversaries. Occasion-based behaviors can be segmented into universal occasions, regular personal occasions, and rare personal occasions, which will allow you to tailor content to all of these different occasions in a more personal manner.

3. Usage Rate

Usage rate divides your users into heavy, mid-level, and light users based on how often they purchase your products or services. When segmenting your audience based on their usage behavior, you’ll be able to focus on turning light users into mid-level users and mid-level users into heavy users while keeping heavy users happy.

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4. Purchase Reasoning

Different users have different reasons for purchasing your product or service. Knowing what their motivations are for seeking out a product like the one you offer will make it easier to meet their needs. For example, if you are selling business software, it may have many benefits, including ease-of-use, affordability, scalability, and integration capabilities. If you have an article about the affordability of your solutions to a user that purchased your software due to its scalability isn’t going to be an effective way to engage with them.

5. Customer Loyalty

Keep in mind that just because a customer keeps buying your product or service doesn’t mean that they are a loyal customer. Customers that are continually in need of the product or service that you offer are known as habitual customers, whereas loyal customers only purchase your products and services, ignoring your competition.

They are important because they end up generating most of your revenue and aren’t that expensive to cater to. As a result, it’s important to be able to identify who your loyal customers are from your regular customers so that you can focus on building your relationship with them.

6. Consumer Status

Determining a user’s status will help you figure out how to best approach them. For example, non-users still need to be made aware of what their problem or pain point is before you can offer your product or service as a solution. Other types of consumer statuses include prospects (who are learning about your product or service), first-time buyers (who may need to learn how to get the most out of your product), regular users (who may benefit from supplemental products), and defectors (who are ex-customers that have chosen a product from a competitor whose trust you need to try to regain).

These are six types of behavioral market segmentation examples that can help you to more effectively–and efficiently–engage with your users and to continue building relationships with them over the course of their buyer’s journey.

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The Benefits of Using Behavioral Segmentation

Engaging your leads and building relationships with them is one of the most important aspects of successful inbound marketing. This becomes a lot easier when you have information about your leads that you can use to your advantage. Many marketers will take the information they gather from opt-in forms and surveys to segment their user lists using marketing automation so that they can target specific groups of their audience using more personalized content. However, segmentation doesn’t end here–you can also implement something called behavioral segmentation for even more insight into who your audience is. The following is a rundown that explains “what is behavioral segmentation?” and the benefits of implementing it.

What is Behavioral Segmentation?

While the information that you gather directly from your leads via opt-in forms and surveys (which can include things like gender, age, location, and other demographic information) is very helpful and can tell you a lot about them, knowing how they behave will give you insight into their needs that many of them can’t even provide.

The information that you collect in order to segment your users based on their behavior is exactly that–data on how they behave on your website. Different types of people will behave differently while exploring your website and engaging. By being able to identify how they are behaving (and taking into account their historical behavior on your site), you can tailor more personal content that targets them more effectively.

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Benefits of Behavioral Segmentation

The following are 3 reasons why you should be using behavioral segmentation as part of your inbound marketing efforts:

marketing automation software1. Personalize your interactions more

The more you’re able to personalize your interactions (for example, sending an article that has tips on what kind of food you should feed your cat to a lead that actually owns a cat) is going to make it much easier to nurture your leads through the sales funnel. Personalization also includes knowing when to reach your leads and what channels to reach them on.

2. Predict and influence user behavior

Tracking how your leads behave on your website or on social media gives you insight into how they are likely to behave in the future, thereby making it easier for you to influence how they behave and what the outcome will be. For example, if you notice that they watch a lot of videos, you can notify them when new video content is being published because you know that there’s a good chance they will watch it.

3. Prioritize your strongest leadsattraction marketing

Not all leads are equal. Their behavioral history will give you insight into which leads are more likely to become customers, or which customers are more likely to become repeat customers. For example, a lead that has spent a lot of time on certain product pages is more likely to take action than someone who only briefly looked at one of your blog posts before leaving your site. You can then, for example, target that first lead by sending a special offer for the product they were looking at to encourage them to make the purchase or an article detailing the benefits of that product.

Your business website and social channels offer a treasure trove of data that will reveal valuable information about the behavior of your leads. You should use this information to segment your leads so that you can more effectively target them and engage with them. If you aren’t using behavioral segmentation yet, you should be.

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