Behavioral vs. Demographic Segmentation: How to Choose Better?

In the marketing world converting and reaching out to the maximum customers, you have to always evolve or search for the latest and better technique.

You have to cover all the channels and mediums to connect with the users and try to increase the conversion rates for your website or app. Before creating any new tool to get a high number of customers you have to understand the user’s behavior.

To understand customers there is a process known as Segmentation. There are many ways to understand customers and divide them according to them.

Now here we discuss segmentation and how behavioral segmentation is better than demographic segmentation.

Click here to know What is Segmentation?

What is Behavioral Segmentation?

Segmentation means dividing, Behavioral segmentation is dividing or sorting out the customers according to their activity on the website or app and activity for any brand.

These activities of customers related to the website or company help you to understand the customer’s attributes like how many times customers click, like, or dislike, purchase history, customer attitude towards any product, etc.

These activities identify the customers’ interaction with the company or website. It makes you understand the customer’s choices and gives you an insightful view of the customer’s mindset.

What is Demographic Segmentation?

Demographic segmentation is separating customers according to their demographic data like age, gender, location, education, income, family situation, etc.

These are the traditionally tested variables of demographic segmentation. It’s been a useful method that we are using for many years. The information is useful but it is not enough. The data is good for the B2C market system.

How Behavioural Segmentation is a Better Choice Than Demographic Segmentation?

As of now we understand the segmentation and know about the differences in behavioral segmentation and demographic segmentation. We will now discuss how behavioral segmentation works and how it is better than demographic segmentation.

Behavioral and demographic segmentation are both parts of segmentation; behavioral segmentation works on customers’ actions whereas demographic segmentation uses traditional variables of customers.

Both have their importance but as of now, demographic segmentation is slowly losing its importance. As the market grows faster, marketers need fast techniques for all their work.

For gaining customers’ attention or getting more and more conversion rates they want the latest and best methods for it.

Behavioral segmentation helps in separating customers into sub-groups according to their behavior for brand or product. It gives any business a maximum conversion rate.

By knowing the customer action and activities the company will be able to provide the best and most relevant service and product to customers.

To know how behavioral segmentation is better we will know about how it works and its objective.

The main objectives of behavioral segmentation are as follows:-

• To know the needs of a particular group of customers.
• To provide the best product and services to customers according to their actions.
• To improve your market and increase business.
• To improve customer experience, create more opportunities.
• Create marketing methods to improve business.
• To get better target customers and prioritize them.
• To improve the product experience and make it more useful.

Behavioral segmentation mainly works on customer’s actions. To get the right information, we have to use the right method it.

Firstly, you have analyzed the pattern of customers. Figure out the different patterns of different customers and make groups of the same pattern.

Secondly, by knowing the different groups of customers you can provide the best product and services which increases customer interaction.

With this information, you will be able to know the high-value customers of your website or business. With behavioral segmentation, companies can able to identify loyal customers for their brand.

How Does Behavioral Segmentation Divide?

To know the customer’s variable completely, marketers should study the customer’s actions and patterns perfectly. Utilize every medium and channel to gain the customer’s actionable information. They should watch every action or activity of the customer.

To do so behavioral segmentation is further divided into four parts:-

1. Purchasing habits 

Purchasing behavior gives you the insight view of how the customers look in during the purchasing process like how a customer looks at a product, what kind of offers or sales attract, etc.

It helps businesses to understand the overall view of the brand and company. It also helps businesses to understand the difficulty faced by customers.

2. Benefits sought 

Benefits sought means dividing customers according to their action while purchasing something having some kind of benefit the customer is looking for.

For example, a customer wants to buy a shampoo that is useful to make the hair shine or a customer needs a hair oil having amla in it.

By grouping customers like this, it helps you to provide the right product to the right customer. That will get you loyal customers and good feedback.

3. Occasional or timing 

As the name suggests it depends on the customer’s behavior according to the occasion whether it is personal or universal. In this behavioral segmentation customers mainly interact or purchase any product according to the occasion or time.

An occasion can be personal like a birthday, anniversary, or any special day and it can be universal like friendship day, Labor Day, Christmas Day, Thanksgiving Day, etc.

For example, a customer likes to purchase a gift for someone for a birthday; customers like to purchase some decorative items on Christmas. This segmentation helps you get back the customers by offers and increase customer engagement.

4. Customer loyalty

Customer loyalty segmentation shows you the customer’s loyalty towards the brand or company. Loyal customers generate the most of the revenue.

Loyal customers help in giving feedback that will help in generating new customers. They do the publicity by giving valuable comments or reviews. They are the customer who needs products continually for them.

By getting their information you will make or plan future campaigns, and strategies to get more loyal customers. This segmentation will assist you to know

• The customer’s behavior throughout the journey to get loyalty.
• The customers are best for the loyalty programs.
• The perfect factors to keep customers happy.
• The methods to get the maximum value from loyal customers.

Conclusion

Behavioral segmentation depends on the customer’s actions or activity. It provides a better insight view of customer behavior to understand the target customers.

By getting the right information about a customer’s activity you can improve your marketing strategy using all the mediums and channels. The information on customer activity is a little harder to get but it’s valuable.

By using behavioral segmentation you will get more customer retention and a higher conversion rate.

Also Read:

• Inevitable Truth Revealed About Market Segmentation
• Best Customer Segmentation Software & Tool
• What is Customer Segmentation- Definition and Type with Example
• How to segment the audience for better-targeted marketing