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Behavioral Segmentation

Definition

Behavioral segmentation is a marketing strategy that groups consumers based on their past behaviors, such as their purchase history, website browsing behavior, and engagement with marketing campaigns. This approach helps businesses understand the actions and behaviors of their customers, which can inform marketing strategies and tactics.

What is the Importance of Behavioral Segmentation?

The importance of behavioral segmentation lies in its ability to identify specific behaviors and actions that can be used to target customers with relevant and personalized marketing messages. By understanding how customers interact with a business and its products, businesses can create more effective marketing campaigns and improve customer engagement and loyalty.

What are the Benefits of Using Behavioral Segmentation?

  1. Personalization: By tailoring marketing messages to customers based on their past behaviors, businesses can create a more personalized and relevant experience that resonates with customers and leads to higher engagement and conversion rates.
  2. Improved targeting: By identifying specific behaviors and actions that are associated with high-value customers, businesses can target their marketing efforts more effectively and maximize their return on investment.
  3. Higher customer satisfaction: By understanding how customers interact with a business and its products, businesses can create a better customer experience that leads to higher satisfaction and loyalty.

How can businesses better use behavioral segmentation?

  1. Collect data: Use website analytics tools, customer relationship management (CRM) systems, and other data sources to gather information about customers’ past behaviors and interactions with a business.
  2. Identify patterns: Analyze the data to identify patterns and trends in customers’ behaviors and interactions with the business.
  3. Segment customers: Group customers based on their past behaviors and interactions with the business, such as purchase history, website browsing behavior, and engagement with marketing campaigns.
  4. Tailor marketing messages: Use the insights from the behavioral segmentation to create marketing messages that resonate with each segment of customers, based on their past behaviors and preferences.
  5. Test and refine: Test marketing campaigns with each segment of customers and refine them based on their feedback and behavior.

Also Known As

  • Behavioral targeting

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