Discover what behavioral segmentation is, its importance, and how you can sort your customers into groups to better engage with them in this blog by Impact.
Blog Post
6 minute read
Nov 18, 2024
Behavioral segmentation in marketing refers to sorting your prospects and customers into groups depending on the shopping habits, interactions with your brand, and interests they exhibit.
For example, one of the ways footwear giant Nike sorts their customer base is by purchasing habits. They use data analytics to keep track of when certain shoppers buy shoes. They then send targeted messages to show a returning customer shoes or offers they might be interested in.
“If a customer usually buys shoes every six months and it’s been 12 months since the purchase, Nike will know to reach out and prompt that customer to resume their purchase cycle.”
Behavioral segmentation in marketing is essentially an exercise in breaking down key attributes of your customer base and marketing to each “segment” in a different way in order to appeal to them more personally.
Read the basics of behavioral segmentation and how you can use it in your business.
When businesses segment their audience groups by behavior, there are four main categories they use. These four types of behavioral segmentation include:
A customer may only fit into a single bucket, while others could be included in multiple buckets, depending on how much behavioral data they offer your brand.
1. Purchasing Behavior
Segmenting your consumers into groups based on their purchasing behavior means taking a look at their shopping habits.
Their frequency and number of purchases, the types of products they buy, and their buying patterns all affect this segment. Common examples of behavioral segments based on purchasing habits are:
Regular customers: Consumers who purchase a particular product or service frequently or in large quantities.
Occasional users: This segment consists of consumers who purchase a particular product or service infrequently, perhaps on a seasonal basis.
Offer seekers: This group consists of consumers who are primarily motivated by price and seek out discounts or promotions.
Impulsive buyers: These are consumers who make purchases on a whim or without much thought, often driven by emotions or situational factors.
How does your business keep track of your customers’ behavior? Do you sort them based on their buying habits? You want to understand why your customers are acting in a certain way toward your brand and then use that information to deliver more personalized experiences for them.
2. Occasion Purchasing
This market segmentation strategy divides consumers into groups based on their purchasing habits related to specific occasions or events. Occasion-based segmentation is often used by businesses to tailor their marketing efforts to specific occasions or events that are important to their customers.
Here are some ways you can segment your customers based on their occasion purchasing habits:
Holidays and celebrations: This segment consists of consumers who purchase products or services related to holidays and celebrations such as Thanksgiving, Valentine's Day, or Halloween.
Special events: This group purchases products or services related to special events such as weddings, birthdays, and graduations.
Seasonal occasions: This segment of shoppers purchase products or services related to seasonal occasions such as summer vacations, winter sports, and back-to-school.
Knowing when each segment is ready to make a purchasing decision will help you create targeted campaigns based on these events to raise awareness of your products and services.
3. Benefits Sought
Using this method, consumers are grouped based on the benefits they seek from a product or service. This can include factors such as convenience, affordability, performance, status, and innovation.
For example, high-fashion brand Balenciaga attracts shoppers by offering them status. Using celebrities and known influencers in their marketing campaigns, the brand promises buyers an aesthetic alignment with these personalities.
“Balenciaga’s customer base consists primarily of fashion-conscious individuals who appreciate the brand’s unique design aesthetic and are willing to invest in high-quality, statement-making pieces.”
Benefits sought segmentation can be a highly effective approach to market segmentation because it focuses on the needs and wants of consumers rather than demographic or geographic factors.
4. Loyalty
In this segmentation strategy, customers are grouped based on their past behavior, including their purchasing history and their level of engagement with your brand.
Customers who consistently use your services or products are considered loyal customers, while those who have only made occasional purchases or have never purchased from the brand are considered non-loyal customers.
Starbucks, for instance, has a loyalty program that rewards customers for purchasing using their app. An app user can collect points as they complete a Starbucks purchase and use them later on a free drink or food item.
The goal of this segmentation approach is to develop targeted marketing strategies that focus on retaining loyal customers and increasing their level of engagement with the brand or product.
How Marketing Segmentation Drives Conversions and Improves the Customer Experience
Behavioral marketing segmentation zeroes in on customers’ actions, preferences, and engagement patterns, which creates a powerful lens for tailoring content and offers. By analyzing behaviors like browsing history, purchase frequency, engagement with specific types of content, and even generational patterns, companies can segment their audience into highly relevant groups.
This targeted approach increases the likelihood that customers will encounter content and promotions that feel personally valuable and timely.
Segmenting by behavior also refines the entire customer journey. As customers move through various stages—from initial interest to consideration and purchase—brands can adjust their messaging to align with each phase.
An e-commerce platform might suggest complementary products after a purchase or offer helpful tutorials on recently viewed items, ensuring the experience feels less like a hard sell and more like a personalized shopping journey. This personalization fosters trust and engagement, as customers feel that brands understand and respect their preferences, which significantly drives conversions.
The benefits extend beyond immediate sales, too. Behavioral segmentation promotes longer-term loyalty by consistently providing relevant, satisfying experiences. Customers who feel “seen” by a brand are more likely to return and recommend it to others, boosting both customer retention and brand reputation.
Ultimately, behavioral segmentation goes beyond selling; it builds a dynamic, value-centered relationship that elevates the customer experience at every touchpoint.
Wrapping Up on Behavioral Segmentation in Marketing
Segmenting your audience and using this data to send targeted messaging and tailored campaigns results in more conversions, better connections with consumers, and all-in-all, a stronger bottom line. By putting yourself in the shoes of your consumers, speaking to their needs and pain-points, and delivering a truly personalized experience, you can win a larger market share.
With the volume of technology we rely on in our day-to-day and the number of choices consumers have when shopping in the modern marketplace, it’s vital that businesses speak to the specific audiences they’re hoping to win as customers.
There are a lot of thoughts and theories on marketing swirling around the internet. Get the run-down from experts in Impact’s webinar, Assessing Your Marketing: An Inside Look.
