What are the Advantages of Behavioral Segmentation in the Fast Food Industry?

Nov 21, 2017

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Advantages of Behavioral Segmentation

S NoAdvantages of Behavioral Segmentation
1.Dietary Choices of Customers
2.Track the Take Away
3.Target Specific Customer Groups
4.Easier marketing strategy creation
5.Make predictions and plan ahead

Don’t find customers for your products, find products for your customers.”

-Seth Godin

What is Behavioral Segmentation?

People are different, so are their food habits and purchasing behavior. Consumers often display various behavioral patterns while making purchasing decisions, and understanding these behavioral patterns and grouping customers is known as behavioral segmentation.

In the fast-food industry, businesses can make use of behavioral segmentation to target customers displaying a particular behavior or channel advertising campaign to identify market segments. Some of the other common customer behavior that is tracked by players in the fast food industry are customer knowledge and awareness about the food product, customer attitude towards the product, frequency of usage, and customer loyalty.

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How Can the Fast Food Industry Reap the Benefits of Behavioral Segmentation?

By incorporation behavioral segmentation into their marketing and operational strategies, companies in the fast food industry can target their customers better and improve their product offerings. Here are some of the key benefits of this technique in the fast food industry:

1. Dietary Choices of Customers

Over the years, consumer dietary trends have been evolving. There has been an increase in the popularity of organic and gluten-free. Therefore, businesses in the fast food industry need to keep a constant track of the changing consumer diet requirements and incorporate the same into their products to garner more attention from the customers. This can be done with the help of effective customer segmentation that would help the business understand what portion of their customer base are happy with their existing food menu and how many are looking for better or healthier options.

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2. Track the Take Away

Restaurant chains in the fast food industry need to track the number of dine-in customers the number of takeaway customers with appropriate customer segmentation methods. In case the number of takeaway orders is increasing, it would help the restaurants to add a grab-and-go outlet to the location. This would help reduce customer wait time, and the restaurant can tailor make a different menu for taking away orders.

3. Target Specific Customer Groups

Customer segmentation in the fast food industry will help the companies to break down their customer base based on different attributes such as age, gender, demographics, making it easier to direct specific products and advertisements at these target groups. For example, the kid’s meal in McDonald’s has been tailor-made to look attractive with toys and smaller meal packages to appeal to the kid’s segment more easily.

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4. Easier marketing strategy creation

With the help of behavioral segmentation, marketing teams are able to better understand their customers’ buying behavior and create specific strategies to target the most profitable customers.

5. Make predictions and plan ahead

Understanding customer behavior and buying pattern enable fast food organizations to forward plan and create strategies to sell specific products during certain times. This enables organizations to fine-tune their marketing approach, update communication, enhance products, and optimize service based on customer needs and expectations. Behavioral segmentation also gives a peek into competitor product preference and enables organizations to create counter-strategies effectively.

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