Imagine knowing precisely how your customers behave, what motivates them to purchase your product and tailoring your marketing efforts to suit their needs best. This is even more crucial considering the different purchase behavior of customer segments. One group of customers might buy from you because of the brand perception that you have created, whereas another group might buy from you because of the variety in your product line. The marketing efforts for both these groups have to be different. This is precisely why behavioral segmentation is essential.

It groups customers based on the observed patterns in their behavior. Aspects like readiness to buy, interactions, purchase behavior, brand loyalty & usage experience are examined, and customer segments are formed on that basis.

Forming such segments can help you market to your customers in a more personalized way so they feel that the message you crafted was uniquely for them. Creating a differentiating mental space in the consumer’s mind has become a tough ask in the information age, where customers are bombarded with messages from different companies. You need to tinker with your marketing attempts and turn them into something that speaks directly to the consumer. 

In this blog, we will look at examples where behavioral segmentation can help marketers leverage customer behavior data to go above and beyond in crafting messages that leave an imprint in customers’ minds.

Tailoring Your Marketing Strategies with Behavioral Segmentation

After creating distinct customer segments based on behavior, customer value can be increased manifold in the following ways:

1. Cater to the customer’s journey stage

A customer’s purchase behavior will depend mainly on the stage of their customer journey. This includes knowing whether they are aware of the brand, considering it, making the purchase, being loyal to it, or advocating for it.

Suppose Aaron is your customer and is considering whether to purchase your product. He has downloaded the app but hasn’t yet made the purchase. It would only be appropriate to tailor your messages to make Aaron go from considering your product to purchasing it. 

So, you use Upshot.ai’s Journey Builder to get templates and send nudges in the form of compelling push notifications that would best fit Aaron’s customer journey, resulting in him purchasing your product and improving your conversion.

Renowned brands like Puma & Panini have used Upshot.ai’s Journey Builder to boost user engagement & customer retention. Puma’s day three customer retention sky-rocketed by 44% and day seven retention by 38%. Leveraging personalized push notifications, Panini increased its user engagement a whopping sixfold.

2. Craft a loyalty program to boost retention

Knowing your customers’ loyalty is essential in increasing customer engagement. A loyalty program can help you determine your most reliable customers, how frequently they purchase from you, and the factors determining their loyalty. 

Imagine your customer Joseph has spent 100 dollars on your products so far and has only purchased from you a few times. You’d want him to be more loyal. To increase the frequency of his purchases, you use Upshot.ai’s Rewards & Loyalty Platform to incentivize Joseph to keep coming back to you for more. 

3. Win back unhappy customers with unique campaigns

To avoid negative social media engagement tarnishing the brand’s image, unhappy and dissatisfied customers must be won back through campaigns that nullify the damage and enhance customer satisfaction.

Picture your customer Felicia experiencing a drop in satisfaction after using your product. It could be because she experienced lengthy hold times. There’s a risk looming over your head of her posting negative reviews about your product or brand on social media. To mitigate the risk and save your brand image ship from sinking, you use Upshot.ai’s Surveys and Ratings Platform to capture Felicia’s opinions, preferences, and attitudes about your product using surveys & ratings. 

Using the survey & ratings data, you put Felicia in the segment of dissatisfied customers and use a personalized message sent over mail or SMS, providing an apology and an incentive for Felicia’s next purchase through your platform. This gives her a strong reason not to let go of your brand, and you win back an unhappy customer!

It is said that 70% of dissatisfied customers will consider staying with your brand if you take corrective action. How’s that for user retention?

4. Measuring user engagement level

How frequently a customer engages with your brand indicates their interest. It signals how involved and committed they are to your business. Behavioral segmentation can be performed based on the frequency of customer engagement. Higher customer engagement does the following things:

• Increases the likelihood of frequent purchases
• Increases trust
• Improves involvement with the brand.

Behavioral segmentation can be implemented to create segments based on high or low engagement levels, and uniquely crafted, personal messages can be sent to them to make them feel spoken to. Big players like Netflix, Spotify, and Amazon suggest content based on customers’ interests and engagement with the platform.

Picture Nandre, a customer who engages with your brand regularly. You have the requisite data regarding his high engagement levels. You put him in the high engagement segment and craft personalized marketing messages using Upshot.ai’s User Engagement Platform. This ensures that all marketing efforts give Nandre’s engagement level a personal touch.

Also, learn how browser notifications can transform user engagement 

5. Benefits-based segmentation

Consumers leave behind a trail of insights about the kind of benefits, features, problems, or use cases that they are seeking out/seeking to solve. This invaluable observation can help your brand understand what your customers value and segment them accordingly.

For instance, envision one of your customers, Dwayne, seeking particular benefits from your product. It becomes imperative to know which benefits Dwayne values most. You use Upshot.ai’s Segmentation Platform to find out the benefits that he considers most important and add him to the segment of customers looking for the same benefits as him. This will ensure that your message is customized to his needs in a personalized way and that you get the most out of your marketing campaigns.

6. Segmentation based on user status

One way to perform behavioral segmentation is to determine the status of the users. User status can be classified in the following ways:

• Non-Users: This group of customers is unaware that they have a problem. You need to make them aware of the problem so that it creates a potential demand for your product.
• Prospects: This group of customers knows their problem but isn’t sure which brand to choose. You need to position your brand to convince them that your offering is the best in the market.
• First-time buyers: This group has chosen your brand over others but would need help using your product.
• Regular users: These are loyal customers who love your product and regularly purchase it. They are highly likely to buy other related products you offer.
• Defectors: This group includes former customers who have since switched to another brand. Resolving their issues with your product can win them back.

For example, picture Kenneth, who is one of your customers. He loves your product and doesn’t mind purchasing his favorite items from your app. However, you notice he purchases a limited number of products from your app. Your task as a marketer is to ensure that Kenneth purchases as many products from your app as possible.

So, you use Upshot.ai’s Personalization tool to put Kenneth in the ‘Regular users’ segment, provide messages matching his condition, and incentivize him to purchase a broader range of products from you.

These six examples show how imperative behavioral segmentation is in the business world. It is a tool that can give you an edge over your competitors. The prominent players in the industry consistently use behavioral segmentation to understand their customers inside out.

Decoding Personalization Strategies by Industry: A Comprehensive Guide

Conclusion

Like other types of segmentation, behavioral segmentation seeks to get a deeper understanding of who your customers are and what they want so that you can solve their problems in a way that feels personal to them. Given all of the benefits, there is no denying that behavioral segmentation in marketing can be a game-changer. 

For your marketing campaign to be successful, you need to communicate with your consumers in a way that feels personal and considers their needs. In a world filled with noise, behavioral segmentation is a tool your business can use to reach a consumer’s mind, which is overflowing with information.

Use Segmentation to your advantage using Upshot.ai

If you think behavioral segmentation will enhance your marketing and skyrocket your business, look no further. Upshot.ai has got you covered. It is your partner in creating legitimate, relevant, and ultra-precise audience segments to help you tailor your communication to deeply connect with each customer and get the most out of your campaigns.

Upshot.ai is more than a platform to help you personalize your marketing. It can be your go-to platform to revolutionize your customers’ experience and ensure they return for more. 

So, what’s the wait? Get the most out of this incredible tool and skyrocket your business. Book a demo, and let’s get started! 

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