Use Behavioral Segmentation to Understand Your Customers


Do you want to understand your customers and prospects better? Once you appreciate how they behave, then it’s easier to market them effectively.

Segmentation has always been a key component of dividing your list of contacts into smaller, more manageable groups. It allows companies to focus their marketing efforts on the most profitable targets.

There are different ways to segment a list: 

  • Purchase history (indicator that a customer is ready to buy) 
  • Demographics (age, gender, income) 
  • Geographic location

Today we will show you how to segment your list using behavioral characteristics. Behavioral segmentation provides a more accurate picture of customer needs and wants. And professionals who do SEO service in Austin use it because it’s based on actual behavior. Here, customers engage when they interact with your business. 

What is behavioral segmentation?

Behavioral segmentation divides lists into groups based on what customers and prospects do. It is as opposed to other criteria such as age, geography, or gender. Instead of grouping people by their actions, we group them by the motivations behind those actions. 

The result is a list that allows marketers to pinpoint particular market segments and tailor marketing programs.

Why should you use behavioral segmentation? 

The key benefit of behavioral segmentation is that it provides an accurate picture of customer needs and wants. It relies on actual behavior in which customers engage when they interact with your business. This allows you to pinpoint market segments and tailor marketing programs.

It can also help you understand why some prospects buy and others don’t. Is it because of price sensitivity, product features, or simply a lack of awareness? Know why customers make choices is key to developing an effective marketing campaign. And it increases sales.

Finally, it can help you identify what type of content would interest your target audience and improve the trust of your visitors. Here, content marketing has become a popular way to help prospects and customers make better decisions.

How do you identify behavioral segmentation?

In order to identify the motivations behind your prospect actions, you need to look for indicators in two main areas: user engagement and customer journey.

What are user engagement indicators?

User engagement is a good predictor of intention. In other words, if a user clicks on your site or responds to an offer, then he might be intending to do business with you. At this point, you can group them into different categories based on what motivates them to take action (e.g., price sensitivity, product features).

What are customer journey indicators?

Customer journey refers to the different stages of the buying process. For example, your prospect’s journey starts with awareness and ends with taking action (or purchase). In order to identify these stages, you need to look for user behavior, e.g., creating a profile, getting into a shopping cart, or requesting further information from you.

Behavioral segmentation methods used by Austin SEO Company  

1. Purchase Behavior

The customer’s journey starts from when they first accept a need to the point they make a buy. 

2. Benefit Preference

Differentiating between customers who prefer one benefit/feature over another. For example, price-sensitive buyers vs. those looking for more benefits like technical support or money-back guarantees.

3. Customer Loyalty

Experts of SEO companies in Austin will determine which customers are likely to remain loyal over time and what makes them stay with you. 

4. Value Ranking

You can group customers according to their preference ranking for different product features, price points, or customer benefits. Those at the top receive the most attention. 

5. Segmentation by Income

Your sales data can be divided into separate groups according to the income level of prospects and customers.

6. Budgeting Behavior

Track spending habits to determine how likely a prospect is to spend money on your services. 

7. Motivation Segmentation

Understand what motivates different prospects to buy or take a certain action.

8. Product Segmentation

Determining which products a prospect is most likely to buy or where there is more interest in low-end or high-end product variations.

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3 types of behavioral segmentation and their variables

1. First touch/Last touch

These are the first and last interactions a prospect has with your company, either online or offline. This type of behavioral segmentation can be used to divide your customers into those who have been contacted more than once vs. those who have only been contacted once or never at all. 

2. Behavioral

This method refers to a customer’s different actions online, either visiting your homepage or completing a form. Examples of buyer behavior include: visiting a product page or viewing social networks

> Search Term

This reflects the words and phrases used by customers who are researching your business and services. A segment could be determined as those people that use certain keywords or a combination of them. For example: “customer service software.”

> Referral source

Customers arriving from referrals rather than other sources can be broken down to create segmentation groups. 

3. Lead-to-customer conversion rate

Tracking the number of leads that become paying customers as well as the customer conversion rate. 

Benefits of behavioral segmentation

  • Allows marketers to tailor content. And it offers specific insights into the company’s customer demographics.
  • Easier to identify differences in customer behavior than other methodologies. 
  • You can break down your brand’s customers’ experiences into smaller, more specific segments for better marketing relevancy.
  • It allows Austin SEO Company marketers to use less data. So that it can achieve statistical significance for segmentation.
  • It helps marketers find relationships between customer behavior, demographics, market conditions. It targets other variables too for marketing efforts.
  • You can break the information down into more specific characteristics of different groups. It is based on their identifiable traits such as age, income, or geographic location.
  • It helps companies see what a certain customer did to make them interested in their product and what they did after the purchase.

Summing up

Behavioral segmentation is an effective way to identify customer needs and wants. It’s one of the most reliable ways to understand why some prospects take action while others don’t. And once you know what drives certain behaviors. You can put relevant content marketing messages that make sure customers are guided through their buying journey. Experts who work on SEO services in Austin, help you build strategies that drive customers according to their behavior.

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