Behavioral segments

Posted on May 16/05/18

Why do you need behavioral segments?

According to the recent Forrester report, the main reason why a business fails is that they are all still sticking on the traditional methods of segmentation. For a business to be successful, one has to leverage customer data into segmentation practices.

With Behavioral segmentation you can Identify specific niches and groups based on the patterns of behavior users exhibit. If you can group them with similar behavior, the first 50% of your marketing effort is well done. Then if you target them with specific and relevant strategies, your rest 50% easier and successful. In simple words, Behavioral segmentation will help you streamline your marketing efforts.

Building segments based on user activities:

You can group the users based on their current activity or completed activity. For example, users who have made a purchase in last week; users who have made a purchase on their first day; Users who usually make a purchase above $25; Users who have purchased ‘product X’ in last 30 days.

Building segments based on User Persona:

You can group the users based on the portfolio of products they purchase. Group 1 purchases 100% denim, whereas Group 2 purchases 50% denims and 50% shirts, whereas Group 3 purchases 70% shirts and 30% t-shirts.

Building segments based on purchasing behavior:

Consider segmenting users based on their behavior throughout the purchase. Some may be Price-conscious buyers. Some may be smart buyers who make a purchase only after complete research. Some buyers may need proof that the product is of good quality and standards. Some buyers may think “I will get it later”. Some buyers make a purchase only if there is a return and exchange policy available on your app.

Building segments based on “First repeat purchase”:

Consider segmenting the users based on their 2nd purchase. They are making a second purchase because they like your product/service. They are stepping stones to transform into loyal customers.

Building segments based on cohorts report:

Suppose, You have initiated 1-week EOS (End Of Seasons Sale), and most of the purchases were done on the first day of the sale. Few of the purchases were made on the 2nd day. On the 4th day, users churn. 5th and 6th day were ineffective because only a few customers return to your app. Group the users on each day and understand why and why not a day’s programme was successful.

To know more about Walinns Cohorts, visit our blog How to measure user retention with Walinns Cohorts

Building segments based on Funnel Report:

Group the users based on the stage where they are currently in. For example,

Register ----- Login ----- Product viewed ----- Add to cart ----- Payment and confirmation

Group the users who are in currently in “Add to cart” stage, send them a notification

Hey, items in your cart are running out. Hurry Up !!!

This message will trigger them to complete the purchase

To know more about Walinns Funnels, visit our blog How to measure app users drop off using Walinns Funnels

Building segments based on Loyalty:

In simple, you as a marketer can segment the user base into 3 segments: Hard core loyal, Split loyal, switchers.

Hard core loyal are always sticking to your app and they deserve to be treated with special offers, discounts and coupons.Further, they have a high affinity towards your app. You can use this, to build upon your brand name.

Split Loyal are users who are only partially loyal to your app.Their 50% of attention is on other apps out there. In this scenario, you have to target them specifically telling them the advanced and competitive features you provide.

Switchers are the users who move around different apps. In order to make them stick to your app, you have to delight them with unique and personalized app experience.

Building segments based on Usage

You can cluster your user population based on how often they use your app. In simple, you can put them into 3 segments: Heavy/Occasional/Light. In this case, “One size fits all” cannot go well. Each segment requires a different strategy to re-engage them, because it is a clever move to retain one heavy user than several other light users.

LinkedIn rewards frequent and loyal users by a premium free trial package. It also motivates occasional users to re-visit by sending a notification, telling them to try their new features.

Building segments based on Occasions

You can group your population based on the occasions during which they develop a need to make a purchase or use your services. The occasion may be time of the day, particular month, or particular season.

Netflix sends out most of their messages and emails during Friday evenings and weekend. Because, those are the occasions users spend a lot of time on Netflix.

Building segments based on monetary value

Consider segmenting users based on their purchase cart monetary value. This will tell you more about your customers monetary capability to make a purchase. This will help you to target premium products for a well-to-do group.

Building Segments based on Benefits Sought

Every user perceives your app differently. For an education app, some may be interested to upload tutorials. But some may be interested to read and listen to the tutorials. The primary benefit both groups derive from the app is different and so are the marketing efforts.Each groups needs unique attention and hence as marketers you need to target them specifically

About the Author

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Pavithra is based out in India, and she loves blogging, travelling and doing cool kinds of stuff in data understanding and visualization.