What are the best ways to segment your target audience based on their behavior?

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Segmenting your target audience based on their behavior can help you tailor your marketing strategy to their needs, preferences, and motivations. Behavior-based segmentation is a type of market segmentation that divides customers into groups according to their actions, habits, patterns, or responses to your products or services. In this article, you will learn what are the best ways to segment your target audience based on their behavior and how to apply them to your marketing campaigns.

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1 Benefits of behavior-based segmentation

Behavior-based segmentation can help you understand your customers better and improve your marketing performance. By dividing your target audience into segments based on their behavior, you can deliver more tailored messages, offers, and content to each segment. This will help increase customer satisfaction, loyalty, and retention by meeting their expectations and needs. Additionally, you can optimize your marketing budget and resources by focusing on the most profitable and responsive segments. You can also test and measure the effectiveness of your marketing tactics and channels for each segment to identify new opportunities and niches in the market based on customer behavior.

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Geena Greguric

B2B & B2C Marketing Leader | Strategist, Demand Generator, Growth Hacker
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Segmenting based on behavior can be an extremely powerful tool. Top of funnel behaviors such as which content they engage with (webinars they watched, ebooks they downloaded, etc) can tell you what pain point a person has. Middle of funnel behavior (like which pages they visit) might tell you what they’re interested in. By understanding these things, you can segment your advertising and message to target a person’s pain or interest and convert them more effectively and efficiently.

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2 Types of behavior-based segmentation

Different types of behavior-based segmentation can be used to group your target audience according to their behavior. For example, purchase behavior looks at how customers buy your products or services, such as the frequency, quantity, timing, or occasion of their purchases. Segmenting customers based on their purchase behavior can offer them incentives, discounts, loyalty programs, or cross-selling and upselling opportunities. Usage behavior considers how customers use your products or services, such as the intensity, frequency, duration, or mode of their usage. It can be used to provide customers with tips, tutorials, feedback, or support. Engagement behavior looks at how customers interact with your brand, such as the channels, platforms, devices, or content they use to communicate with you. This segmentation can be used to optimize your marketing mix, create more engaging campaigns, or increase your brand awareness and advocacy. Lastly, loyalty behavior examines how customers demonstrate their commitment to your brand through retention rate, churn rate, repeat purchases, referrals, or reviews. Segmenting customers based on loyalty behavior can reward them and help retain them as well as turn them into brand ambassadors.

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3 How to segment your target audience based on their behavior

Behavior-based segmentation can help you create more relevant and effective marketing campaigns that resonate with your customers and drive your marketing goals. To achieve this, you need to define your objectives, collect and analyze customer data, identify and create customer segments, evaluate and validate customer segments, and implement and monitor customer segments. For example, you can use cluster analysis to group customers based on purchase frequency, usage intensity, engagement level, or loyalty score. You can measure the effectiveness of your customer segments by looking at segment size, profitability, stability, and accessibility. Additionally, you can tailor your marketing mix, messages, offers, and content to each segment and monitor customer feedback for any changes in behavior.

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4 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Nessica Birwadkar ??

Content Strategy at Aon | Writes 'Miserable Marketers'
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Demographic segmentation is a weak filter in industries like SaaS. Behavior based segmentation is one way. You can also segment your target audience by ? Pain Point ? Use Case ? Product Value Prop Consider a few combinations to find the best target audience. ?? Behaviors are also subject to change basis which stage of the buyer journey your target audience is in.

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Milanyila V.

AI Integrator | Strategic Connector | AI Agent | Empowering Global Expansion & Strategic Innovation| Dream tech| Conscious Strategist Growth Partner|
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Behaviour is not static; it evolves as customers progress through the buyer's journey and interact with your brand. Understanding the specific behaviours associated with each stage of the customer journey, from awareness to consideration and conversion, can significantly enhance your segmentation strategy. This approach allows you to tailor your messaging and content to address customers' evolving needs and motivations as they move closer to making a purchase decision. Furthermore, considering behavioural triggers and pain points specific to each stage can help you craft more compelling and timely marketing initiatives, nurturing prospects effectively and driving conversions.

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What are the best ways to segment your target audience based on their behavior?

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1 Benefits of behavior-based segmentation

2 Types of behavior-based segmentation

3 How to segment your target audience based on their behavior

4 Here’s what else to consider

Marketing

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What are the best ways to segment your target audience based on their behavior?

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1 Benefits of behavior-based segmentation

2 Types of behavior-based segmentation

3 How to segment your target audience based on their behavior

4 Here’s what else to consider

Marketing

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