Behavioral Segmentation is the process of using real time data and buying signals to separates customer, or prospects, into groups, or target audiences / markets. Instead of just using the static buyer personas, micro audiences are created based on the actions taken by prospects during a buying cycle. The goal of behavioral segmentation is to reduce product or service marketing decision risk while increasing marketing efficiency. Automating the process of buyer segmentation based on behaviors allows resources to be better allocated by attracting the right customer to the corresponding product, based on target group interest. Behavioral Segmentation can be combined with dynamic content and journey automation to drive prospects through an adaptive path to the buying decision This is unlike a concentration strategy, which focuses all marketing efforts on the preferences of only one target group, behavioral segmentation is often or a multi-segment (or micro segment) strategy, which further divides the marketing focus and efforts among two or more target groups.
Behavioral segmentation is used in behavioral marketing. Marketers leverage behavioral segmentation software to drive dynamic website content and connect tracking information to adapt the marketing material and marketing assets to customize and personalize the marketing journey. Studies have shown that dynamic website content helps drive conversion rates and shorten the buying cycle.
The use of dynamic audiences can be used to drive advertising based upon the stage of the buyer journey. Behavioral Retargeting Software is used to move populations in and out of custom audiences based upon the behavior of the prospect. For example, contextual advertising based on a website page visit can be improved using a dynamic custom audience. If the prospect signs up for a trial, your ads can dynamically change to start driving the prospect to book a meeting. Once a meeting is booked the ads can change to talk about features and benefits, etc.