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. Behavioral market segmentation segments your leads based on how they behave. This behavioral data comes from 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 purchase and decision-making process between two very different brands.

Variety-Seeking- In which the user isn’t that involved in the purchasing process. However, they may choose a different brand just to try it out.

Dissonance-Reducing– Where the customer is happy with their brand, but they know other options that could be better. This also happens, when the customer needs to make a major purchase, but there’s not much difference between the products they’re considering.

Habitual– When little involvement is needed and the product doesn’t vary much from brand to brand. It’s mainly just personal preference that matters. 

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 identifiable 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 split up into universal occasions, regular personal occasions, and rare personal occasions. This 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 those motivations  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 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. That way  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 need to be 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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market research strategies

7 Market Research Strategies You Should Implement

When it comes to market research strategies, the more you know about your target audience, the more effective they will be. The biggest mistake you can make is assuming you know who your audience is and that you understand what their needs are without doing the proper market research. Not only could you be mistaken, but audiences evolve over time. This means that even if you do have a firm grasp of who your audience is at the moment, this can change in the future. It’s why you need to continuously do market research so that you can keep up with who your audience is. With that in mind, the following are seven market research strategies that you should use to better understand your audience and what their needs are:

1. Send Out Customer Surveys

One of the easiest ways to collect information about your target audience is to send out surveys to your customers. Basic NPS surveys can give you a good idea of what they think about your products and services and give you more detail about what they liked and didn’t like. This will give you a better understanding of whether you’re meeting the needs of your audience or not.

Of course, NPS surveys aren’t the only type of surveys you can use. They are certainly helpful and easy to complete, but you might want to consider sending out surveys through the mail, asking website visitors to do more in-depth surveys on your website, or even performing telephone surveys.

2. Perform Customer Interviews

Contact customers and request personal interviews. These can be in person or over the phone. When performing a personal interview, make sure that your questions are unstructured and open-ended questions. When you first contact a customer, do so with the intention of scheduling an interview in the future and not performing one on the spot as they are more unlikely to do this. Incentivizing a customer to take the time to do an interview may be a good idea as well, just make sure that by doing so, you’re not affecting how they answer your questions.

3. Hold A Focus Group

A focus group can be an excellent way to find out what customers think about your brand. During a focus group, a moderator will ask a series of scripted questions to a group of customers at a neutral location. The conversations that take place are videotaped so that you can review them and learn about what your customers think.

4. Observe Your Customers

It’s worth noting that customers may give answers in focus groups, interviews, and surveys that conflict with their actual behavior. It’s why you should consider observing customers in action. You can do this by recording customers in your store to see how they behave. Also, try inviting customers to try out products or services and record them (with their permission of course) so that you can see how they interact with your product in person.

Similar Article: Simple Ways that Small Businesses Can Use Data to Build Better Customer Relationships

5. Monitor Your Competition

You can learn a lot about your audience by reviewing what your direct competitors are doing. Routinely check out the content they’re posting on their website, their press kits, their advertisements, and their social media activity. Doing so can provide you insight into how they are positioning themselves and what kind of audience they are targeting and engaging with. This should also provide you with some useful information in the form of what their weaknesses and strengths are that you can apply to your own marketing efforts.

6. Monitor Discussions About Your Brand

Customers will often talk about your brand without you even realizing it. You can use a variety of tools to track mentions across social media channels. This allows you to identify when people are talking about your brand and what they’re saying about it. You could even join in on conversations to ask people follow-up questions to their comments.

7. Join A Trade Association

Joining a trade association can be quite useful. It provides you with access to information about your industry, making it easy to keep up with the latest trends and market shifts. Not to mention that you’ll have access to networking events and conferences. There, you can glean all kinds of information about both your industry and your audience.

By better understanding your audience, you will be able to keep up with their needs and improve your products and services to meet those needs. Use these seven market research strategies to stay up to date with who your audience is and how their needs are evolving.

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customer experience vs user experience

Customer Experience vs User Experience: Understanding the Difference

When it comes to building your website and providing the best possible customer service, it’s all about creating a positive experience that will help increase conversions, retain customers, and improve your brand reputation. You may refer to this experience as the “customer experience” or the “user experience”. However, these two types of experience are not actually the same thing. Knowing the differences between the two is very important. This is because by knowing the differences between customer experience vs user experience, you will be able to improve both.

What Is User Experience?

The user experience refers to how people interact with your product or service and their experience with it. For example, how a visitor interacts with your website refers to their user experience. If your pages load slowly and they leave without visiting more pages, then they had a bad user experience. However, if they spend a long time exploring your site’s different pages and engage in several ways, such as by filling out a form and signing up to an email list, there’s a good chance that they had a positive user experience.

Improving The User Experience

To improve your user experience, you need to focus on the four user experience elements: value, usability, adoptability, and desirability. Consider these four elements in the context of a website and how they affect the user experience:

  • Value – Does your website provide value to the user? If it’s nothing but advertisements for your products and services, then it probably doesn’t. However, a website full of informative and helpful content that is relevant to your brand and the user’s needs does.
  • Usability – How easy is it to use your website? For example, is your content organized so that visitors can find it easily? Do you have links to the major pages of your site clearly marked on your home page? Is it easy to contact you through your website? If your website isn’t easy to use, visitors will become frustrated, resulting in a poor user experience.
  • Adoptability – How easy is it for visitors to start using your website? Do pages load quickly? Is your website optimized for mobile devices? If they can’t even begin to use your site, their impression of your business will turn negative.
  • Desirability – How engaging is your website? If you have content that’s relevant and informative but has poor presentation, it’s not going to be very engaging. You can improve desirability by creating a variety of different content, using images and using an engaging personality in your writing.

Although these four elements are described in reference to a website, they can be used for any product or service.

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What Is Customer Experience?

Whereas user experience refers to the experience using a product or service, the customer experience refers to the experience interacting with your brand as a whole. For example, this could include exploring your website, signing up to an email newsletter, downloading several eBooks, speaking with a sales associate, making a purchase, then continuing to engage with your brand post-purchase. Basically, the user experience factors into the overall customer experience.

Improving The Customer Experience

The following are some major elements that make up the customer experience:

  • Your customer serviceCustomer service includes any direct interactions users have with your brand, such as through a live chat feature, email, phone, text or social media. Your customer service reps need to engage in a friendly and helpful way, whatever channel they’re on. Remember that customer service doesn’t stop after you make the sale.
  • The sales process – The sales process should be convenient and painless for the user. Any issues they have, whether it’s with checking out, trying to use a promotional coupon, pricing issues and more, can hurt the customer experience.
  • Your marketing efforts – How you market your products and services to a user affects their customer experience. If they find that your attempts to engage them are overly promotional or not relevant to their needs, they may become annoyed. That’s why it’s important to know who your audience is and only engage in a relevant manner.
  • The user experience – The user experience with your product or service has a big impact on their overall customer experience.

One thing to keep in mind — a customer might have a good user experience with your product, but that doesn’t mean they’ve had a positive customer experience. For example, they can like your product but dislike the quality of your customer service. Because of this, it’s important that you focus on providing both a positive user experience and overall customer experience.

Understanding the difference between the customer experience vs user experience will allow you to improve both. By thinking that they’re the same, one or both are likely to suffer. Although they differ, the two work together to improve the customer’s overall experience.

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