Behavioral segmentation is a marketing strategy that involves dividing potential customers into groups based on shared behavioral patterns. This type of segmentation studies the behavioral traits of consumers, such as their knowledge of, attitude towards, use of, likes/dislikes of, or response to a product, service, promotion, or brand. Behavioral segmentation can be used to identify tightly defined market segments and better understand consumer motivations for product or brand choice.
Examples of behavioral segmentation include loyalty programs, happy hour events, survey collection, and recommendations based on a customers interests and preferences. By segmenting users by their behavioral data, marketers can gain a more comprehensive look at how to adjust messaging, brand, marketing materials, and ultimately products or services to stay ahead of the competition and reduce customer churn.
Behavioral segmentation is important because it enables marketers to identify high-value prospects with the greatest potential business impact, make smarter decisions on how to best allocate time, budget, and resources, and monitor growth patterns and change in segments over time to gauge business health and track performance against goals.
