Behavioural segmentation looks at the transactional data that is all around us.  Actions such as; website visits, brand interactions, user status, spending and purchasing habits all give us an understanding of consumer behaviour.

Pros

Behavioural data is particularly useful when considering the customer’s journey. By understanding the ways in which different users interacts with you, it can help shape your promotional efforts. For example it could be that potential customers often visit the ‘about us’ page before enquiring, which may inform marketing that more material is needed about the organisation’s history and pedigree.

Behavioural data also shines a light on the full ‘burn time’ for customers. In the past many organisations would only become aware of a prospect when they enquired, but today they can see track different interactions and see their journey through multiple touchpoints. By analysing this data,  brands can form strategies to reduce the ‘burn time’ and make their customer onboarding journey as smooth as possible.

Cons

Transactional / user data is all around us, but can only answer the ‘what’, ‘who’, ‘where’ or ‘when’ questions we may have; it doesn’t understand the ‘why’. It is therefore more useful when combined with a more motivational lens.

It also only gives you a consumer’s behaviour within the context of your brand, and it is difficult to tell if this is such activity is typical for that person. As an example, there may be a perceived correlation between newsletter opens and interest, but there is no data that would tell you whether an individual may simply read all of the newsletters which they receive. This has meant that behavioural segmentation is still reliant on generic information and industry trends when considering buying patterns.

Another issue with behavioural segmentation is it also heavily reliant on people interpreting the data correctly and understanding/being empathetic to the thought process and decision making process for customers.

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