Defining behavioural Segmentation with 7 Examples

Summary

7 Behavioural segmentation examples in detail: what is target behaviour?

1. Purchasing behaviour

One of the first client segmentation examples is purchasing behaviour. This refers to the process a buyer makes during their decision-making process for each purchase. Behaviour varies from client to client, as each buyer may have different roles in the buying process, require more or less information, or simply buy according to their habits.

Due to the variety of influences, assessing which behaviours are most predictive for purchase-making and quantifying purchasing behaviour for behavioural market segmentation can be a challenging process. To develop a better understanding of purchasing habits, behaviour should be divided into four subcategories to later prioritise and adapt communication:

Complex:

Variety:

Dissonance-reducing:

Habitual:

2. Benefit segmentation

Another example of behavioural segmentation is benefit segmentation. This method focuses on what buyers stand to receive when purchasing a product or service and is aided with accurate behavioural targeting and behavioural segmentation. Each client may benefit from products differently, depending on their needs and how they are fulfilled by making a purchase.

Identifying the various benefits of a product for each target segment can indicate the main selling points of each product, can uncover buyer motivation, and help to segment target markets. Highlighting key benefits allows for better personalisation and messaging that resonates with audiences.

This information can also inform product creation. Similar to other client segmentation examples such as purchasing behaviour, client surveys are instrumental for benefit segmentation. Collected feedback can be analysed and later implemented into A/B testing to trial various campaign elements and narrow down the most effective tactics for each segment.

3. Buyer journey stage

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    Non-users: Have no knowledge of a company or its products.

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    Prospects: Have limited knowledge and are undecided about making a purchase.

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    First-time buyers: Have recently made a purchase of a product or service.

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    Repeat buyers: Regular clients who consistently renew contracts.

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    Former clients: Past clients who have moved on to use competitors’ products either for their price, quality, or simply due to their changing needs.

Depending on the buying stage of each client, different communication and campaign strategies will be effective. For example, a repeat buyer should not be addressed in the same way as a former client. In addition, a lost account will require more detailed behavioural targeting and nurturing to encourage them to return.

Similarly, prospects who are consistently visiting pricing pages, but not going through with a purchase, may also require further nurturing to move them from the awareness stage of the funnel towards making a purchase. The enthusiasm of first-time buyers also presents an opportunity and should be taken advantage of to create lasting loyalty.

As such, establishing the buying stage of potential and existing clients can be used to segment large target markets into smaller, more specific groups. Knowledge of these groupings can then be applied to strategies to implement campaigns with messaging that appeals to buyers in each stage. Feedback from personalised campaigns can then be leveraged to create new products and make improvements to existing ones.

4. Usage rate segmentation & user status

Users can be divided into three specific groups or user statuses:

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    Light users: Clients who use products much less than others and are likely to not make a repeat purchase.

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    Medium users: Clients who use or purchase products on an average basis; neither regularly nor infrequently. These clients may be more inclined to make purchases due to specific timing or based on events and discounts.

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    Heavy users: These users are the most loyal and engaged with products. They regularly renew or purchase products and services and are responsible for a large portion of a company’s revenue.

5. Product behaviour

Product behaviour is an in-depth analysis of how clients use products. This may include the most used features, the least popular features, and what challenges are being faced during use of the product. This information, when combined with general feedback from clients about product features, can be leveraged to improve the overall optimisation of products for key segments.

Product behaviour from existing or potential clients using a product trial can also be used to inform usage rate segmentation and the identification of accounts within target segments that stand to benefit from products the most.

6. Engagement rate

Engagement rates are another important variable for identifying behavioural characteristics of existing and potential clients. The level of engagement focuses on which content is most successful in capturing the attention of target audiences. Engagement also indicates which prospects are consuming different types of content and when in relation to their buyer stage.

Metrics including download rates and other variables—such as interactions with client service representatives, chatbots across social media, or proprietary websites—can also be insightful for identifying which content appeals to target segments. Content consumption data also aids behavioural segmentation to identify the needs of specific accounts and their interests.

With this information, content marketing strategies can be optimised to create timely content that appeals to leads and encourages them through the sales funnel towards making a purchase.

7. Channel-based engagement

Our team of dedicated in-house demand generation experts work with clients to develop precision strategies specific to their target markets and the segments within.

LET’S WORK TOGETHER TO BUILD CUSTOMISED CAMPAIGNS THAT DELIVER UNMATCHED LEVELS OF ENGAGEMENT

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