Why Behavioral Segmentation is Must for a Product

Part 2

Posted on April 25/04/18

Gaining on mobile moments will require a set of tools that allow you to engage with your customers in real time. In order to compete in this fierce market, you will need to zoom in on the live behavior of each individual currently residing in their app.”

App marketers need a multifaceted market segmentation to quickly gather most relevant data about a user so as to not become confounded by the scope of such operation. This multifaceted segmentation will determine what users want, where they are and swiftly deliver on their needs, growing brand value.

To discover optimal touch-points of engagement, marketers must use behavioral segmentation to mark key areas in their apps that justify their brand making contact with a user.

To further drill down business results, the segments should be aligned with key metrics. In other words, all segments of users, be they new members, most active members or dormant members in your app, need to map to specific clusters of behaviors.

Keep Eye on Existing Users

Much marketing efforts focus on acquiring new users, neglecting retention. Research shows that for every 100 users who download an app, on average only 6 will continue using it after 30 days.

For every $100 you spend on acquiring a user, it only costs a third of that amount to keep them. The probability of selling to an existing customer is 60–70%, while the probability of selling to a new prospect is 5-20%. Existing customers are 50% more likely to try new products and spend 31% more when compared to new customers. Therefore, it is to your best advantage to dedicate a portion of your marketing resources to improving, as well as growing, your retention rate.

Behavioral segmentation shines at pinpointing those users who are likely on their way out. Creating a segment of users that have not visited the app for a while allows for specific targeting to encourage engagement and gain back such customers.

You can further categorize these users into micro-segments based on the acquisition channels or ad campaigns they came from to engage them with hyper-personalized messaging. Such micro-segments can include users acquired via paid search or via a Facebook ad campaign, for example.

Learn Your Users’ Various Meanings Using Segmentation

Navigating through a customer flow is not as straightforward as we think. People don’t navigate in an orderly fashion. Most are feeling their way around, some reach dead ends, then get dormant.” This is why helping users with subtle and useful notifications need to become a strategic part of mobile marketing. But first, the network needs to be simplified and its key areas identified and defined.

Tracking the number of app downloads, identifying returning vs. new users or calculating click-through rates will not serve. our needs. Marketers need to segment users who happen to be at similar stages of their in-app journey. Those can include the point of signing in to a music app, favoriting an artist or sharing a song.

In the event they get stuck, lost or turn inoperative, a personalized notification can help them discover a new product, write a review, join a community of users, or share a product with a friend. Communicating with a customer in this way makes it more likely that they will return and keep returning to you as the brand of their choice.

Use Context to Engage

Engagement can begin with a personalized welcome message and continue until a transaction is complete. The key is to reach out not when it is convenient for you, but when the moment is most available and your action makes the greatest impact. Because the mobile attention span is so short, your ability to influence needs to be extremely well-timed and provide value, such as offering a discount on an item that’s been sitting inside a cart for 15 minutes. Pushing a notification within this time-frame will have a much bigger impact than sending it 24 hours later when the user may not be in a mood to buy.

The information gathered is organized to make you better understand where users are on their mobile journey and tailor your communication to gain maximum response.

For example, by identifying all the users who came into your app in the last week but have not been active since you can send them a notification informing them of exciting new features they have missed in order to draw them back in.

An unhappy user could be segmented as someone who while active, rated the app one star. This segment could be a target for sending a survey notification on how you can improve our product to meet their expectations, potentially gaining insight into what caused them to rate the app so poorly and make good on their experience, avoiding churn.

Learning your user’s context in detail allows you to predict their needs and make helpful suggestions to guide them on their in-app journey. It’s important to understand the context of interaction and time it well so as to render it as a benefit and not a disruption.

Choose A Marketing Platform Built For Behavioral Segmentation

Common platforms that strive to aid marketers in this challenge often fall short. Many exceed at offering high-level segmentation, funneling tools, and basic analytics that track user behavior over long periods of time. Yet, what is often missing is a combined multifaceted solution that allows for highly customized targeting and messaging, forming direct contact with a user. Some platforms can be confusing in the way they present their findings and lack specific details that can optimize segmentation and conversion.

Advanced Analytical Platforms such as Walinns automatically puts behavioral segmentation at the core of your strategy. Walinns tools are made for using behavior segments to engage your users and turn them into loyal buying customers.

About the Author

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Shiva, User Growth and Customer Success at Walinns. I write introspective things I hope people can relate to.

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