Behavioural Segmentation: What It Is and Why It’s Important
User behaviour is a major aspect of how users interact with your product or service. behavioural segmentation is the key to going beyond demographic or geographical data. While these data help marketers find the local or global target customers, behavioural data aids in personalising the user experience. That's why user behavioural segmentation is popular among marketers. So, if you are wondering what behavioural segmentation is, why it’s important, and how you can implement it, this blog is for you. Let's start!
What is Behavioural Segmentation?
Behavioural segmentation is grouping prospects and customers based on their behaviour when interacting with a business. According to Mailchip, segmented campaigns increase the open rate by 14.31% than non-segmented campaigns.
It states the journey of user interaction with your products, services, and even notifications and alerts. Tools like Notifly Segmentation can give you a better-personalised view of customers. It gives you a comprehensive view of your customers' wants, needs, and expectations. What makes it interesting is the psychological aspect of it.
Nonetheless, it’s quite different from psychographic segmentation, which you can learn here.
Why is User Behavioural Segmentation Important for You?
Once marketers collect behavioural data from users, it gets easier to resonate with them. Here are a couple of reasons that dictate the importance of user behavioural segmentation.
- Personalisation: Identifying user behaviour helps businesses in many ways. Firstly, in tailoring their products and services; Secondly, to meet the specific needs and preferences of different user segments. This can lead to more personalised and relevant experiences for customers and improve customer satisfaction and loyalty.
- Targeted Marketing: Behavioural segmentation allows businesses to target their marketing efforts more effectively. For example, creating targeted marketing campaigns that are more likely to resonate with and convert specific customer segments.
- Optimised User Experience: Businesses can use behavioural segmentation to make their websites or apps better for users. They do this by figuring out how different groups of users use their platforms. This helps them make changes to make it easier to use and more interesting for everyone.
- Customer Retention: This helps in identifying user dissatisfaction and the high likelihood of churning. It helps businesses take proactive measures to retain customers. For instance, if a group of users exhibits behaviours indicating they might leave, the company can take steps to improve their experience or offer incentives to stay.
- Customer Satisfaction and Loyalty: When businesses know how their customers behave and give them what they like, it can make customers satisfied and more loyal. Happy and loyal customers tend to come back, buy from the business again, and tell their friends about it.
What are the Types of Behavioural Segmentation?
There are several ways to approach behavioural segmentation. Here are four common types of user behavioural segmentation:
1. Usage-Based Segmentation:
This type of segmentation categorises users based on how frequently or intensively they use a product or service.
For example, in a mobile app, users can be segmented into groups like "daily users," "weekly users," and "infrequent users." This allows businesses to tailor engagement strategies to each group based on their usage patterns.
2. Purchase or Transaction-Based Segmentation:
In this approach, users are segmented based on purchasing or transaction history.
For e-commerce companies, this might involve categorising customers into groups such as "frequent shoppers," "one-time buyers," or "cart abandoners." This helps create targeted marketing campaigns and incentives for specific user groups.
3. Benefit-Based Segmentation:
This segmentation type focuses on what users expect from a product or service. This enables companies to customise content and interactions to better suit each user's level of engagement.
One of the best behavioural segmentation examples of this type is Amazon Fresh. This form of ordering groceries through the mobile app is appealing to many users.
4. Customer Journey-Based Segmentation:
At various stages of the customer journey, user behaviour is analysed to create segments.
For example, putting users in groups like "awareness stage," "consideration stage," and "loyalty stage" based on interaction with the company. This helps businesses give them what they need at each step to make their journey smoother.
These are just a few examples of user behavioural segmentation. Hence, there are different ways to group users based on how they act. A business can choose the way that fits its needs. The important thing is to figure out how users behave in a way that helps the business, whether that's selling stuff, improving products, or keeping customers happy.
