Behavioral Segmentation: A Five-Minute Guide to go from Novice to An Expert

What is behavioral segmentation?

Behavioral segmentation is defined as the process of dividing the total market into smaller homogeneous groups based on customer buying behavior. This approach of market segmentation focuses more on the distinct actions of customers with regard to the product or service and less on the identity of customers. Behavioral segmentation allows you to categorize your existing and potential customers into smaller segments based on their purchase behavior. The main objective of behavioral segmentation is to identify niches and address their needs that are believed to be similar. This helps marketers to develop marketing strategies for every individual segment and create products to cater to their needs.

Market segmentation can help you analyze various customer groups and gain a competitive edge. Get in touch with our experts to know more.

Why is behavioral segmentation important?

With the competition getting fierce every day, companies are striving to win dynamic markets by designing and producing personalized products to serve the needs of their customers. Every consumer is unique, and this uniqueness is somehow based on their backgrounds and needs. This is the reason why they develop different habits in terms of buying specific products. Therefore, it becomes important for companies to aim at serving their customers based on their buying behaviors. This is where behavioral segmentation comes into the picture. One of the most important reasons why behavioral segmentation is important is because different individuals have different preferences and with this approach, businesses can yield higher profits than approaching different groups with the same marketing strategy.

BEHAVIORAL SEGMENTATION

Behavioral segmentation methods

Purchasing Behavior

This is one of the best behavioral segmentation methods that help to identify trends in customers behavior during the process of purchase decision-making. Analyzing the purchasing behavior of the customers can help in understanding how different individual approach the purchase decision, the barriers they face in the purchasing process. Also, by analyzing these entities and the relation between them, businesses can determine the moments in which customers are most likely to make a purchase.

Our analytics solutions help companies gain accurate insights into the behavior of their customers and marketing efforts. Request a FREE proposal to know more.

REQUEST A FREE PROPOSAL

Occasion or Timing

Based on timings and occasions, the propensity of consumers to make purchases fluctuates. There are many customers who buy on specific occasions while there are others who buy on regular personal occasions and then there are a few who buy on rare personal occasions. Understanding when a group of similar customers is highly likely to make a purchase can help companies tailor their offers and maximize their profits. Also, it is considered to be one of the most beneficial behavioral segmentation strategies for businesses in terms of gaining customer loyalty.

Usage Rate

It is very important for businesses to know how often a customer uses your product or service. This can help companies in tailoring marketing initiatives and offer every individual a personalized customer experience. With the help of this behavioral segmentation method, businesses can easily identify their most reliable customers who provide them with a bulk of consumer-generated revenue. Also, it can help in targeting such customers who make purchases regularly but not at frequent intervals. This component of behavioral segmentation also helps in identifying customers who don’t make purchases unless some discounts are offered by the company.

Request a FREE demo to know how our analytics solutions can help you continuously track your consumers’ behavior.

REQUEST A FREE DEMO

Weekly Round-Up: 5 Customer Segmentation Success Stories That You Wouldn’t Want to Miss Out

LONDON: Quantzig, a leading analytics services provider, has announced the release of their new storyboard on the importance of customer segmentation. These success stories explain how customer segmentation analysis can help companies to devise customized approaches that satisfy the needs of different customer groups and drive customer loyalty and profitability.

With the proliferating marketing platforms today, customer segmentation has become a pre-requisite for those who wish to improve sales, reduce attrition, and boost profitability. Customer segmentation analysis is a key that helps companies to comprehend their customers buying preferences and influence their behavior. By using a robust customer segmentation strategy, businesses can gain actionable insights into various customer groups. Also, leveraging such insights can help businesses to improve customer retention and loyalty.

Quantzig’s customer segmentation analysis solutions have helped several Fortune 500 companies to precisely predict and deliver relevant offers that attract rather than alienate customers. Below, we have summarized some of Quantzig’s success stories that highlight how customer segmentation analysis has helped companies to gain a leading edge in today’s competitive marketplace.

Our analytics experts can help your business grow using targeted customer segmentation analysis solutions. Want to know how? Get in touch right away!

#1. How customer segmentation analysis guided a leading manufacturer in designing a new product launch strategy? Understanding the behaviors of the existing and potential customer base is not very easy for businesses. Are you finding it difficult to understand customer behaviors? If yes, then take a look at our latest success story where a leading manufacturer faced a similar issue and approached Quantzig to leverage its expertise in offering customized analytics solutions to address customer-centric issues. Our analytics experts adopted a comprehensive three-pronged approach to help the client develop a new customer segmentation strategy and predict the future value of customers. Want to know more? Here is the full story.

Designing a New Product Launch Strategy with the Help Customer Segmentation Analysis – A Case Study by Quantzig

#2. Quantzig’s customer segmentation model helped a retailer excel in the competitive landscape: Quantzig’s customer analytics solutions are revolutionizing the way businesses operate. Don’t you agree? This success story is an excellent example. A Fortune 500 electronics retailer was facing issues in managing attrition rate and preventing its potential customers from opting out of the conversion funnel. They were looking for solutions to predict customer behavior and effectively engage them well in advance for improving sales. Quantzig with its team of analytics experts built a consolidated data visualization platform and leveraged the use of analytical dashboards for effective customer segmentation analysis and decision-making. This helped the client to analyze the key drivers of customer satisfaction and devise suitable strategies to counter the decline in sales. Read the complete story here.

How Customer Segmentation Helped an Electronics Retailer To Gain a Leading Edge in the Smart Wearables Segment

Our analytics dashboards offer detailed insights into the behaviors of specific customer segments. Request a FREE demo below to gain better insights.

REQUEST A FREE DEMO

#3. Customer segmentation solution enhanced customer retention rate by 20% for a fintech firm: Developing a robust marketing strategy to target specific customer segments is essential if you are trying to establish your business in any specific region. A US-based Fintech company was finding it difficult to segregate the customers in terms of need-based and value-based segments in the Asian market. Quantzig’s customer segmentation solution helped the client to discover the value of each segment to tailor their marketing efforts. Furthermore, these solutions helped them maximize cross and up-selling opportunities and encourage customers to subscribe to more products and services. As a result, the client realized a significant improvement in their customer retention rate, which increased by a whopping 20%.

Customer Segmentation – How A Leading Fintech Industry Player Enhance Customer Loyalty and Retention Rate By 20% in the Asian Market

#4. How can customer segmentation solutions improve business operations? Are you wondering how to identify and implement appropriate customer segmentation models to profile and retain valuable customers? Our customer segmentation solutions can help as it helped one of the leading vegan food distributors based out of the United States. The company was facing issues in predicting the total future value of its business and approached Quantzig to leverage its customer analytics solutions. Our experts helped the client to gain an in-depth understanding of how their best customers are segmented within the global food industry and enabled them to scale their business operations. Here is the link to the full story.

Customer Segmentation for A Leading Vegan Food Products Manufacturer Helps Scale Their Business Operations

Request a FREE proposal below to know how our customer analytics solutions can help you curate high-value customers.

REQUEST A FREE PROPOSAL

#5: Customer segmentation models helped a client to win over the global customer groups: Predicting the profitable customer groups is a daunting task for businesses. But customer segmentation analysis can help in dealing with such issues efficiently. This is clearly evident in this success story where the client, a warehouse logistics solution provider, was facing similar predicaments. Quantzig’s customer segmentation solutions helped them to develop a well-aligned business plan to deliver sustained growth and empowered them to attract and win over global customers.