BEHAVIORAL MARKET SEGMENTATION
DISCOVER THE “WHY” BEHIND EACH SALE
Behavioral segmentation aims to discover trends and insights related to how customers interact with your business. This method of customer segmentation is an essential part of growth marketing strategy which focuses not only on customer acquisition but also on maximizing revenue and profit from existing customers.
Behavioral segmentation helps identify customer segments that are the most engaged and more likely to buy and remain loyal to your brand. This method seeks the answers to these questions:
- Why do customers buy your products or services?
- How do they buy your products or services?
- How do they use your products or services?
- How do they feel about doing business with your company?
Understanding what motivates a customer to seek your product or service and how they use it to solve problems, can help marketers hone in on the right type of messaging and effectively allocate marketing resources and budget to get the highest return on spend.
At DirectiveGroup, we help clients in B2B industries grow sales and revenue from the highest profit-producing customer segments.
Don’t find customers for your products, find products for your customers.
-Seth Godin
Why Use Behavioral Segmentation
Behavioral research helps marketers maximize the effectiveness and performance of their marketing resources.
- Improve messaging accuracy
Find patterns in customer behavior to deliver relevant messaging at the right stage in the buying journey. - Maximize marketing spend
Allocated marketing resources to reach relevant prospects which exhibit the highest level of engagement. - Build brand loyalty
Show customers how much you care through relevant offerings and high-level of personalization.
TYPES OF BEHAVIORAL SEGMENTATION
Buying Occasion
Used to help boost response rates, occasion-based marketing is a category of Behavioral segmentation because people are more receptive to buy something related to an occasion. Finding or creating that reason is classified as occasion buying. A wine company, for example, might build a campaign around celebrating a
promotion or an engagement.
Benefits Sought
Answers the question “what’s in it for me?” Every consumer has a need. Understanding that need and marketing how your product can satisfy that need creates a segment. The toothpaste industry is full of companies that target their market based on behavioral segmentation and benefits sought. Thanks to our unique and oddly vast oral hygiene problems, there is a product that can satisfy virtually every need.
Usage Rate
Differentiates the consumer based on how frequently they use the product. Typically, they are classified as heavy users, medium users, light users and nonusers. Heavy users are on the border of becoming loyal and should be treated differently than other types of users. Medium users consume the product at a reasonable and expected rate. Light users can usually be persuaded to try your product more frequently by offering them incentives and promotions. Nonusers are the group of the population that is not currently using your product or service. Knowing the behaviors and buying patterns of your users are particularly interesting for companies because they can take that knowledge and use it to develop a plan targeting that segment.
Loyalty
Classified as having high, medium, or low brand or product loyalty, marketers try to earn repeat customers who are loyal to their offering. Once brand loyalty status has been achieved, marketing strategies change from acquisition-focused to retention-focused. Understanding the characteristics that made the consumer loyal is important so that companies can look for other consumers with similar characteristics in the general market.
WHY
DirectiveGroup
No gimmicks. No fluff.
No meaningless data.
Strategy-based approach
We start with the end in mind. We work with you to establish clear, measurable outcomes and determine the right mix of data, tech and creative to keep moving your business forward.
Experience integrating with internal teams
We’ll work collaboratively hand-in-hand with your internal team and be involved as much or as little as you like.
Transparency at every step
You’ll always know what the next steps are, what is being done and by whom. We keep you updated on the status of your campaigns and work with you to make strategic changes for better results.
Your success is our success
Our team carries the attitude and mindset of “think like an owner”. As such, we work relentlessly to help your growing company become an industry leader.
WHY
DIRECTIVEGROUP
No gimmicks. No fluff. No meaningless data.
Strategy-based approach
We start with the end in mind. We work with you to establish clear, measurable outcomes and determine the right mix of data, tech and creative to keep moving your business forward.
Experience integrating with internal teams
We’ll work collaboratively hand-in-hand with your internal team and be involved as much or as little as you like.
Transparency at every step
You’ll always know what the next steps are, what is being done and by whom. We keep you updated on the status of your campaigns and work with you to make strategic changes for better results.
Your success is our success
Our team carries the attitude and mindset of “think like an owner”. As such, we work relentlessly to help your growing company become an industry leader.
Discover High-Value Opportunities and Multiply Profits with Products and Services That Sell Themselves
The amount of data, tactics, and approaches the marketers have to face daily increases the need for a strategic partner. We provide the surety of a big digital marketing agency but deliver results with the mastery, commitment, and passion of an in-house team.