![\"behavioral](\"https:\/\/www.similarweb.com\/corp\/wp-content\/uploads\/2022\/02\/Definition-image-for-behavioral-segmentation-a-form-of-market-segmentation-in-which-you-group-the-audience-based-on-behavioral.png\")
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This behavioral segmentation definition refers to any audience \u2014 prospect, customers, or anyone else \u2014 and covers any kind of engagement.<\/p>\n
Let\u2019s decipher for more clarity. Traditional audience segmentation<\/a> looks at demographic<\/a> or psychographic factors and aims to create consumer groups according to who the consumer is. Behavioral segmentation, on the other hand, considers what the consumer does and how. This method analyzes real-time activities taken on your website or app to identify common patterns.<\/p>\n Engagement metrics<\/a> play an essential role and function as behavioral segmentation variables in developing a suitable strategy.<\/p>\n Ecommerce companies analyze browsing behavior and buyer journey to group their audience by funnel stage and readiness to buy. They also analyze the types of pages and products prospects browse.<\/p>\n If you run a SaaS platform, you may be more interested in segmenting according to user status, including gauging customer loyalty or frequency of visits, and average time spent on your site<\/a> or app.<\/p>\n Gaming and other consumer apps may also find user status segmentation useful. However, other factors, such as device type and content type, come into play here.<\/p>\n Behavioral segmentation is often more powerful than traditional types of market segmentation<\/a>. If you were to describe it in one sentence, this would be it: Reach the right customers with the right message at the right time in the right place.<\/strong><\/p>\n Understanding audience behavior<\/a> allows you to create more targeted marketing and efficiently allocate resources.<\/p>\n Let\u2019s envision an example: You spend a significant chunk of your marketing budget on paid advertising offering discounts. However, many of your existing customers who frequent your website regularly don\u2019t pay attention to these ads. Many miss out on some of the hottest offers, and you miss out on valuable brand ambassadors. Based on this behavior, you decide to find a better way to reach them and create dedicated campaigns for this particular segment.<\/p>\n In the following section, we\u2019ll dig into the different subcategories of behavioral segmentation, and you\u2019ll quickly understand how the various benefits pan out. This type of market segmentation enhances customer experience and satisfaction.<\/p>\n Before you sharpen your analytics tools, let\u2019s recall: The meaning of behavioral segmentation is to identify behavioral similarities so you can divide your audience into smaller manageable groups and leverage their behavior to improve your marketing.<\/p>\n You can approach this in several ways. Here are some of the most common types:<\/p>\n This is the most commonly used method of behavior-based segmentation. You can adapt your marketing campaigns accordingly if you know how people purchase and what impacts their purchasing decision. Discover common patterns in purchasing habits, like the time it takes to reach a purchasing decision, the number of interactions with your site and with other sites, and more.<\/p>\n Most companies categorize purchasing habits according to four patterns: complex, variety-seeking, dissonance-reducing, and habitual. What\u2019s behind these abstract terms?<\/p>\n This type of behavioral segmentation investigates why someone interacts with your site or becomes a customer. The idea is to segment according to the benefit they are after. Your goal is to identify whether they are driven by quality, a price advantage, urgency, convenience, or something else.<\/p>\n You want to figure out which pain point drives visitors to your site and into conversion. Inspect the factors that guide their decision and what helps move the decision forward.<\/p>\n For example, some customers of SaaS services may be particularly concerned with legal issues and always read the terms and conditions; others never even open them. If you identify this behavior, you can create a segment that will be provided with extra content addressing the legal matters to strengthen their confidence.<\/p>\n Apps aim for continuous use and frequent engagement. To assess visitors’ value, you need to measure the intensity of app usage.<\/p>\n Typically, companies will divide their audience segments into three main user statuses\u2019:<\/p>\n To segment according to the buyer journey stage<\/a>, you use behavioral indicators to determine the funnel stage of your prospects or potential customers. Identify what behavior characterizes visitors in the awareness, engagement, and decision-making phase.<\/p>\n This type of segmentation is useful for companies with particularly long buyer journeys. Complex technologies or B2B services can take months, and the potential client goes through long phases of comparing and evaluating. Each stage may require a completely different approach, and involve different levels of interaction with various business units.<\/p>\n Less complicated services or product providers may segment according to lifecycle stage. It would look something like this: non-user, prospect, first-time, regular, or defector.<\/p>\n One important factor to investigate is the impact of external events, such as holidays or times of the year. Many retail branches are heavily affected by outside trends and events and want to analyze occasion purchasing.<\/p>\n This type of segmentation seeks to divide your audience by the impact of special occasions on purchase decisions. This includes holidays and official events as well as special occasions like birthdays. It can also consider seasons of the year, time of the month, or even time of the day, which might be significant for gaming sites<\/a> as an example.<\/p>\n Other variables of behavioral segmentation include spending habits. This is an extension of the differentiation between occasion buying and regular. For example, some customers only purchase using coupons or special offers; others never use credit cards. In some types of business, these are relevant factors.<\/p>\n Behavioral customer segmentation<\/a> has many benefits, and the type depends on your business character and needs.<\/p>\n If you already have efficient audience analysis<\/a> in place, you have the infrastructure for your behavioral segmentation laid out.<\/p>\n First, select the touchpoints from which to collect data. This can include all channels that connect your audience to your brand. Then determine the scope of each segment.<\/p>\n Different metrics represent different segmentation strategies, so the data you monitor with your web analytics tool<\/a> depends on the type of behavioral segmentation and the goals you aim for.<\/p>\n In many cases, you want to add data from your partners or affiliates. You may discover an entirely new set of behavior in the audience arriving from specific partners or partner sites.<\/p>\n It may also be helpful to collect data from other sources, such as the CRM, social media, and your email automation tool. In some industries, you should consider adding non-digital touchpoints to the mix.<\/p>\n Let’s imagine the marketing department feels they are wasting time and resources because the generic marketing material is too sophisticated for light users and boring to your heavy users.<\/p>\n You decide to go for user status segmentation for your SaaS application that targets business owners.<\/p>\n The simple way to segment your users is a binary system in which you set a specific condition on a specific metric. You could divide the audience by the frequency of visits \u2013 do they visit more or less than once a day? Or you could use time spent on site as a gauge. Visitors who spend more than an hour on average per day are considered heavy users, for example.<\/p>\n A more complex method is, of course, to combine metrics and scale. Instead of measuring time spent on site, you could look at audience loyalty<\/a>. All you need to do is figure out what to measure.<\/p>\n That, however, is often easier said than done. How do you decide what to combine and which metrics are relevant?<\/p>\n When you follow these guidelines, you\u2019ll quickly be able to choose the metrics that help you segment your audience effectively.<\/p>\n You\u2019ll get even more out of behavioral segmentation when you utilize the info you already have on your audience. Correlate with common audience segmentation methods such as:<\/p>\n Adding demographic or psychographic aspects can enhance your behavioral segmentation strategy and allow for an even more pinpointed marketing strategy in terms of budget and targeting.<\/p>\n ![\"An](\"https:\/\/www.similarweb.com\/corp\/wp-content\/uploads\/2022\/02\/An-image-representing-that-behavioral-segmentation-considers-what-the-consumer-does-and-how.-scaled.png\")
<\/p>\nThe role of engagement metrics in behavioral segmentation<\/h3>\n
What can behavioral market segmentation achieve for you?<\/h2>\n
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<\/p>\nBehavioral segmentation examples<\/h2>\n
1. Purchasing behavior<\/h3>\n
![\"A](\"https:\/\/www.similarweb.com\/corp\/wp-content\/uploads\/2022\/02\/4120_alexa-blog-audience-segmentation-04-1-scaled.png\")
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2. Benefits sought<\/h3>\n
3. User status<\/h3>\n
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4. Customer journey or lifecycle stage<\/h3>\n
![\"The](\"https:\/\/www.similarweb.com\/corp\/wp-content\/uploads\/2022\/02\/An-image-showing-the-buyer-journey-funnel-image-scaled.png\")
<\/p>\n5. Other types of behavioral segmentation<\/h3>\n
Behavioral segmentation variables<\/h2>\n
How to segment users by behavior for more targeted strategies<\/h2>\n
![\"4](\"https:\/\/www.similarweb.com\/corp\/wp-content\/uploads\/2022\/02\/Image-with-4-tips-for-segmentation-based-on-audience-behavior.png\")
<\/p>\nOther types of audience segmentation<\/h2>\n
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