Behavioral Segmentation: The Ultimate Guide to Unlocking Your Target Audience in 2023

Are you looking to unlock the secrets of behavioral segmentation and take your target audience engagement to the next level in 2023? Look no further – this all-inclusive guide is designed to provide an understanding of what behavioral segmentation is, why it matters, and how to use it successfully.

From selecting the right variables and deciding on appropriate segmentation models to measuring results and monitoring success, this comprehensive article will give you a comprehensive overview of everything you need to know about unlocking your target audience through behavioral segmentation.

What is Behavioral Segmentation?

Behavioral segmentation is like a marketing magnifying glass, allowing marketers to get up close and personal with their customers. It’s an analytical approach that divides customers into groups based on their behavior, enabling marketers to better understand customer needs and preferences.

So what are the four main types of behavioral segmentation? Purchasing behavior looks at individual customer purchases as well as how often they buy and when. Benefits sought examines what customers are looking for in a product or service. The buyer journey stage refers to the various stages of the customer journey, while usage behavior looks at how often and how customers use a product or service.

But why should you use this type of marketing segmentation over traditional demographic or geographic data? Behavioral segmentation offers more than just demographics – it allows marketers to look beyond psychographics, too, focusing on actual customer behaviors instead. By grouping customers according to their behavioral patterns alone, marketers can create campaigns tailored specifically for them – increasing both engagement and lifetime value!

In conclusion: behavioral segmentation is invaluable for understanding your audience better so you can create more effective campaigns that will keep them coming back time after time!

Why is Behavioral Segmentation Important?

Behavioral segmentation is like a powerful magnifying glass, allowing businesses to zoom in on customer needs and preferences. It is an effective way to tailor marketing strategies and target the right customers, increasing loyalty and boosting long-term revenue.

Why should companies apply behavioral segmentation? To gain a deeper understanding of their customers’ behavior – identifying needs and preferences that can help marketers create more effective messages, campaigns, and strategies tailored to each customer using other segmentation data. The benefits are clear: targeted material sent to the right audience; selling strategies crafted around customer needs; increased lifetime value; reduced churn rates; improved brand loyalty through personalized programs; hyper-targeted campaigns for better optimization of resources; personalized experiences leading to higher conversions.

In conclusion, behavioral segmentation is essential for businesses that want to understand their customers better, improve their marketing strategy, and increase customer lifetime value. With behavioral segmentation, they can gain insight into behavior patterns which will enable them to develop more effective campaigns tailored specifically for each customer group.

Types of Behavioral Segmentation

Behavioral segmentation is a powerful marketing tool, like a magnifying glass, that helps marketers get to know their customers better. It allows them to identify segments of customers who are more likely to respond positively to certain messages or products and services. By observing customer behavior, such as the types of content they consume, how often they make purchases, and their usage patterns, marketers can create more personalized campaigns.

For example, an outdoor store could segment its customers based on what type of product they’re looking for – from hiking boots for rough terrain to trail running shoes and waterproof boots for fishing trips. Occasion-based purchases also play an important role in behavioral segmentation; this involves grouping customers’ purchasing process according to special occasions like birthdays or anniversaries.

Additionally, demographic data can be used alongside geographic and behavioral information when it comes to an understanding of how people approach purchase decisions. This way, marketers can uncover those with the highest lifetime value and target them with loyalty programs or rewards – plus convert light users into loyal ones!

Purchasing Behavior

Purchasing behavior is a puzzle – but why should we care? It’s an important tool for marketers to understand how customers make buying decisions and what drives them. Complex buying behavior is like a high-stakes game of chess, involving lots of research and expensive purchases. Dissonance-reducing buying behavior is more like talking it through with friends or family, reading reviews, and making fewer choices. Habitual buying behavior is the same as brushing your teeth every morning – you do it without thinking about it! And variety-seeking buying behavior involves impulse buying and exploring different products.

We can segment customers according to their product consumption – readers can be active, occasional, or non-readers; understanding time-based and segmentation-based helps brands target customers with the right offers at the right time. In short: purchasing behavior gives us insight into customer needs so that we can optimize sales accordingly!

Benefits Sought

Benefits sought is a type of behavioral segmentation that helps marketers understand what motivates customers to buy. For instance, when segmenting mobile phone users, one group of medium users may prefer inexpensive and durable phones, another expects easy-to-use phones with the latest tech features, and a third want expensive and stylish models.

But why is it important to understand customer needs? By understanding the benefits sought, marketers can personalize their campaigns for each segment. Plus, they can anticipate customer needs and create marketing campaigns that will drive loyalty and engagement and target highly satisfied customers.

Buyer Journey Stage

The buyer journey stages are a key part of behavioral segmentation. Tracking all interactions customers engage with a brand to understand how engaged customers are? That’s what these stages involve. Awareness, Consideration, Purchase, Retention, and Advocacy – those five touch points make up the customer journey.

Marketers can use buyer journey analysis to get an idea of customer readiness to buy. What do they know about the product? How often do they visit the store or website? This is where understanding customer journey stages comes in handy – marketers can identify opportunities for upsells and cross-sells or target customers with special offers.

So how can brands effectively engage with their customers and maximize their sales? By using buyer journey analysis! It helps them create marketing campaigns tailored to each stage so that they can reach out to their customers in meaningful ways.

Examples of Behavioral Marketing

Behavioral marketing is a powerful tool that can be used to identify and target customers based on their behaviors. What’s more, companies can gain insights into the average customer’s location, preferences, interests, and buying habits – allowing them to create customized experiences for each individual customer.

But how? Through behavioral segmentation! This process allows companies to divide their customer base according to behavior. By understanding the behavior of their customers, businesses are able to craft marketing strategies tailored specifically to them.

Take Olay, ThirdLove, and Guinness as examples: these brands have all utilized data and segmentation in order to provide personalized experiences for their customers.


Olay used customer data and segmentation to better understand their existing customers and influence future customer behaviors. By examining purchasing behavior, usage behavior, and benefits sought, Olay was able to identify products and features that their customers were seeking that the company was not originally considering.

Olay recognized the need for fragrance-free products and thus developed a new range of such items. Additionally, they created Retinol24, a retinol-based product. This data-informed behavioral segmentation strategy resulted in increased revenue for the company.

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ThirdLove used behavioral segmentation to target its customers with personalized messages. The company segmented its customers based on their purchasing behavior and customer journey stage and sent out emails tailored to each customer loyalty behavioral segmentation.

For example, customers who had made an initial purchase were sent an upgrade offer email, and customers who had reached a specific anniversary with the company were sent a personalized email that included the location of their first purchase and a comparison of their most purchased items.

These personalized emails resulted in increased customer loyalty and revenue for ThirdLove.


Guinness used behavioral segmentation to target their audience – but how? The company divided customers into three groups: loyalists, potential buyers, and occasional drinkers. To reach these different behavioral segments together, Guinness employed psychographic segmentation, occasion-based segmentation, behavior graphics segmentation, and rewards programs. Plus, they used slogans like “Make it a night you’ll remember” and “Sometimes less is more” in their campaign. This strategy resulted in increased customer engagement and loyalty to the brand. But what can companies learn from this example of behavioral marketing? Think of data as a map that guides businesses toward creating tailored campaigns for their target audience – helping them craft personalized experiences that keep customers coming back for more!

Strategies for Implementing Behavioral Segmentation

Behavioral segmentation is a powerful tool for marketers to better understand their customers. It focuses on customer behaviors, such as purchases, benefits sought, and product usage. With customer loyalty and satisfaction in mind, marketers can use segmentation data to identify customer segments and target them with relevant messaging.

Analyzing this behavioral data also allows marketers to develop strategies that will engage customers and increase conversions. They can create more targeted campaigns tailored to each segment based on location, order value, or past user behavior. This helps boost lifetime value by targeting satisfied customers or increasing usage from lower-use customers. So how do you make the most of behavioral segmentation? By understanding your audience’s needs and creating messages that speak directly to them!

Retarget Desired Behaviors

Retargeting desired behaviors can be an effective way to reach business goals. By understanding customer behavior and preferences, marketers can identify the customers with the desired behaviors and retarget marketing efforts to them in order to increase engagement and conversions.

Retargeting customers can be done by using customer feedback and data-informed behavioral segmentation to understand what drives customer purchases. Marketers can also use past user behavior to craft personalized marketing messages that are relevant to the complete customer profile. By creating segmented campaigns based on customer data, marketers can target customers with tailored messages and content.

Use Location-Based Segmentation

Location behavioral market segmentation,-based segmentation, is a powerful strategy for targeting customers in specific locations. Marketers can use location-based segmentation to identify and target customers in specific areas, such as cities or states. This can be used to reach business goals by sending out targeted messages, coupons, or flash sale emails on specific days.

By leveraging customer data across multiple touchpoints, marketers can customize messages based on each customer’s location. Additionally, AI-powered platforms can be used to analyze customer behaviors along the customer journey and identify trends and patterns to predict customer purchases.

Suggest Complementary Features or Products

Suggesting complementary features or products – is it the key to customer loyalty and engagement? Marketers can leverage customer data across multiple touchpoints to determine what other customers they are likely to be interested in. By understanding the user base and how they use the app or product, marketers can create a complete profile of their customers and tailor messages accordingly. Surveys help them understand why occasional customers don’t purchase, while references and case studies allow them to reach out to those with high satisfaction levels.

Tips for Making the Most of Behavioral Segmentation

Behavioral segmentation is a powerful tool for marketers to create more targeted campaigns and identify customer segments. To make the most of this strategy, there are several essential tips to consider. Measure frequency of visits, time spent on the website, and audience loyalty to segment users based on their behaviors – providing valuable insight into customer behavior and helping marketers craft more personalized marketing messages. However, this process can be time-consuming, with potential privacy issues in mind.

Segmenting customers according to their journey is an incredibly useful tactic that uncovers problems and barriers preventing them from taking the desired action. Analyzing the customer journey stages gives us insight into what messages or strategies are working or not – plus analyzing patterns of customers in the high satisfaction segment helps improve customer satisfaction too!

Rewards programs offer customers incentives to come back – leading to repeat business while also helping identify new customers. Understanding the benefits users look for from a product or service allows us better meet their requirements by personalizing experiences according to each segment.

Analyze customer feedback and engagement metrics to measure pre-purchase and post-purchase behavior, which helps identify the most loyal customers who may churn soon, as well as those with the highest lifetime value. Use data collected here to create personalized marketing messages suggesting complementary features/products increasing loyalty & satisfaction while location-based segmentation targets offer tailored specifically for them!

By following these tips, businesses maximize value from loyal customers, deliver personalized messages & yield answers from feedback embedded into various channels allowing them to stand out & diversify results!


Behavioral segmentation is an important tool for businesses to understand their customers and create more personalized and impactful marketing campaigns. By understanding customer behaviors, companies can identify customer segments, suggest complementary features or products, and adjust their strategies to increase engagement and conversions.

Businesses can also use location-based behavioral segmentation examples to better target customers in specific areas and retarget desired behaviors to maximize customer lifetime value. Although it requires hard work and dedication, following the tips mentioned in this article can help businesses make the most of their behavioral segmentation and unlock their target audience in 2021.

Frequently Asked Questions

What is behavioral segmentation example?

Behavioral segmentation is a crucial marketing process that helps to segment customers based on their behaviors and preferences. For example, companies will divide their customer base based on past purchases, website visits, and any other engagement with their business.
This allows them to create tailored campaigns to cater to individual groups and increase engagement.

What are the four types of behavioral segmentation?

Behavioral segmentation divides consumers into categories based on their habits, attitudes, and preferences. The four types of behavioral segmentation are usage or purchase behavior, time-based and occasion, benefit-driven, and customer loyalty.
Each type is distinct and offers businesses a better understanding of their target market.

What is an example of behavioral marketing?

Behavioral marketing is the practice of targeting consumers based on their behaviors, such as what they have clicked on or searched online. An example of this type of marketing is sending ads to people who have recently been looking at a particular product or service on your company’s website.
This type of marketing can be highly effective, as it allows companies to target potential customers who are already interested in their products or services. It also allows companies to tailor their messaging to the individual, making it more likely.

What is an example of a behavioral segmentation base?

Behavioral segmentation is a marketing tool that involves grouping consumers based on their behaviors, such as usage and purchase habits. Benefits-driven segmentation, time-based and occasion segmentation, and customer loyalty segmentation are all common examples of behavioral segmentation bases.

What are the four types of behavioral segmentation?

Behavioral segmentation is an effective way of personalizing messages to target customer groups, and there are four main types: Usage and Purchase Behaviour, Time-Based and Occasion, Benefit Driven, and Customer Loyalty.
By understanding each type and its purpose, businesses can use behavioral segmentation to increase sales and engagement with their customers.

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