What is Behavioral Segmentation: Definition and Characteristics

Behavioral segmentation is the process of grouping customers according to their behavior when making purchasing decisions.

Market researchers are in charge of observing aspects such as readiness to buy, i.e. the knowledge they have about the product, level of loyalty, interactions with your brand or product usage experience, etc.

The main objectives of behavioral segmentation are:

  • Identify segments based on the behavior displayed by customers.
  • Determine how your product or service satisfies the needs of each segment.
  • Tailor the product or service to meet the needs of consumers.
  • Create marketing campaigns tailored to a specific segment and increase the probability of purchase.
  • Allow organizations to know the brands that consumers purchase most frequently and identify the competition.

Characteristics of behavioral segmentation

Among the main characteristics of behavioral segmentation are:

  • Companies use this method to focus their efforts on the right audience depending on the buying behavior they have.
  • Enables decisions based on the use of resources such as time and budget to have a greater impact on consumers.
  • It is based on the attitudinal history of consumers in order to identify and influence future purchasing decisions.
  • You can identify similar behaviors among consumers and focus marketing efforts on a specific group.
  • It can be adapted to the personality of each consumer group in order to achieve the established objectives.
  • It allows the creation of marketing strategies to obtain loyal customers to the brand.

Types of behavioral segmentation

Behavioral segmentation is responsible for grouping consumers as follows:

  • Occasion-oriented behavioral segmentation: It refers to when a product is purchased for a particular occasion, it may be something that is repeated or never happens again.
  • Usage-oriented: This refers to the number of times the consumer uses the product. It can be heavy, moderate, or minor usage.
  • Loyalty-oriented: This type of segmentation is focused on customer retention rates. When the brand has a high level of loyalty, it does not have to worry about acquiring new customers.

Recommended article: Customer Churn

  • Benefit-oriented: There are certain benefits that people look for when purchasing a product. They look for availability, different varieties, or prices that meet their needs. However, there are customers who are looking for the product to give them the maximum benefit.

Advantages and disadvantages of behavioral segmentation

Advantages

Among the main advantages of behavioral segmentation are:

  • It allows organizations to find customers with similar buying habits and behaviors.
  • It enables organizations to understand consumer needs.
  • Organizations can build brand loyalty in the most like-minded customers.

Disadvantages

Behavioral segmentation has some disadvantages:

  • Consumer behavior is changeable and cannot always be predicted correctly.
  • It can only provide a frame of reference based on personality and behavior.
  • Because it uses qualitative data, it relies on certain assumptions for forecasting, budgeting, spending, etc.

Importance of behavioral segmentation

Behavioral segmentation is done with the objective of grouping people who exhibit the same behaviors and targeting all marketing efforts to a single group.

With this method, companies can promote and market their products effectively, meeting the needs of customers.

The main objective of behavioral segmentation is to understand the needs and desires of customers by offering something unique based on their behavior when purchasing a product or service. It also allows companies to market customized products specifically to potential consumers.

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