Behavioral segmentation is the process of segregating the total customer base into smaller homogeneous groups based on their buying persona.
It takes place by companies based on specific patterns – such as buying behavior, purchase frequency, brand loyalty, etc. In simple terms, people showing similar buying pattern is clubbed together in a single group.
The primary reason behavioral segmentation performs is that it helps companies promote and market their product or service in a very streamlined and effective manner. It enables the companies to understand the customers’ needs and act accordingly to meet those specific needs.
Also, people have become conscious of brands nowadays, which naturally creates massive competition among companies. To cater to this competition and gain an edge over others, companies can customize the products/services based on the customers’ preference.
The following methods allow businesses to use predictive segmentation to determine the profile and behavior patterns of customers.
Purchasing Behavior
It is an advantageous method that allows the business to look at how consumers act throughout the purchasing process.
It enables the business to understand the way customers make a purchasing decision. Their role in the process, the purchasing process’s complexity, possible barriers to purchase, and behaviors that are least predictive.
There are four types of purchasing behavior – habitual, dissonance-reducing, variety seeking, and complicated. Each customer falls into any of these types of behavior.
Features and Benefits Sought
Valuable insights about a customer’s behavior reveal when the customer is researching a service or product that benefits their situation.
A customer would place a more excellent value on certain benefits as compared to others. It is these benefits that drive the customer to make a purchase.
For instance, when buying shampoo, there are certain features that customers look for – such as the price, scent, fragrance or non-fragrance, dry scalp, oil reduction, and volume.
Even if two identical prospects have similar demographic makeup, the opportunities will hold different product features and benefits.
Consumer Journey
Behavioral segmentation allows the business to segment customers according to the journey stage. It enables the company to communicate and offer a personalized experience to each customer/visitor.
Thus, it boosts conversions – businesses can discover the stage in which customers are in and if they have not been able to progress. They can improve their marketing efforts accordingly.
Usage
It is a beneficial method to segment customers. It predicts the loyalty of customers and their lifetime value.
More likely how customers are using the service or product, how often it comes into use, how much money customers spend on the service or product, and the features commonly used.
Users divide into three segments – light users, medium users, and heavy users.
Timing or Occasion
It allows the business to determine when customers buy or use their product or service.
It includes universal occasions such as seasonal events or holidays and personal occasions such as birthdays, weddings, or vacations.
If the data got analysis properly, it would be easier for businesses to analyze, segment, and target customers based on behaviors.
Role of NextBee in transforming Businesses
Technology is changing the entire market landscape, and Data Analytics is leading the latest industrial revolution.
Thus, to keep growing your business, you certainly need help in the predictive analytics department. And here, NextBee can be your reliable business partner by offering the right solution at the right time.
With an extensive experience of over ten years, NextBee has the expertise to take your business to the next level. It is a data-driven company that offers outstanding service to its clients.
Get in touch with NextBee marketing specialist to book a demo of the solution.
