Understanding Behavioral Segmentation: Benefits and Examples

Behavioral segmentation can help marketers achieve effectiveness in marketing strategy. By understanding and categorizing customers based on behavioral characteristics, marketers can tailor their marketing efforts to meet consumers' needs. Let’s learn more about this segmentation method with examples of different industries in this article by Viindoo.

What is Market Segmentation Behavioral?

Behavioral segmentation is a marketing strategy that involves dividing a market based on consumer behavior. This type of market segmentation groups customers into categories based on how they interact with a product, service, or brand. The categories can include a wide range of variables such as buying habits, usage rate, loyalty, and brand perception.

By analyzing these variables, businesses can understand their customers' motivations and tailor their marketing strategies to meet their needs. This segmentation method is particularly useful in identifying and targeting specific customer groups that are likely to respond positively to a particular marketing campaign.

what is behavioral segmentation

What is market segmentation by behaviors

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How to Segment the Market based on Behavioral Characteristics?

Market segmentation behavioral involves several steps. First, a business must identify the behaviors that are relevant to its product or service. These behaviors could include purchase history, frequency of use, and customer loyalty. Next, the business must segment its customer base into groups based on these behaviors.

For example, a business might identify a group of customers who frequently purchase its products and another group who only buys occasionally. Once these groups are identified, the business can tailor its marketing strategies to target each group. This might involve offering discounts or rewards to loyal customers or creating targeted advertising campaigns for occasional buyers.

how to conduct behavioral segmentation

How to segment the market by behaviors of customers

Why is Behavioral Segmentation important?

Segmenting the market based on Behavioral characteristics is a vital aspect of marketing that can help businesses gain more customer insight. Here are some reasons why this segmentation type is important.

Identifying Customer Groups

This segmentation method enables businesses to group customers with similar behaviors and preferences. This categorization helps businesses understand their customers' needs and tailor their marketing strategies accordingly.

marketers should know behavioral segmentation

Markets should know why should segment the market based on behaviors

For instance, an online retailer may segment its customers based on their purchase history and buying habits. By identifying customers who frequently purchase high-end products, the retailer can create marketing strategies to target this group with premium products, promotions, and discounts.

Focused Marketing Efforts

By understanding the behavior patterns of different customer groups, businesses can focus their marketing efforts on the customers who are most likely to respond positively. This approach can lead to increased customer loyalty, higher conversion rates, and ultimately, increased revenue.

For example, a travel company may segment its customers based on their travel behavior, such as frequent flyers or budget travelers. By developing marketing strategies that cater to each group's specific needs, the travel company can increase customer engagement and loyalty.

Identifying New Market Opportunities

Segmenting based on Behaviors can also help businesses identify new market opportunities. By analyzing customer behavior patterns, businesses can identify untapped markets and develop strategies to reach them.

For instance, a bank may identify a group of customers who prefer digital banking options over traditional banking services. The bank can then develop new products and services, such as mobile banking apps, to meet the needs of this group and expand its customer base.

behavioral segmentation facilitates new market opportunities

Segmentation by behaviors facilitates new market opportunities

Examples of Market Segmentation Behavioral

The segmentation method is powerful and can be applied across various industries. Here are some examples:


Online retailers can use this segmentation type to categorize customers based on their purchase history, buying habits, and browsing behavior. This approach allows retailers to develop personalized recommendations and targeted advertising campaigns to increase conversion rates and customer loyalty.

For instance, an e-commerce website may segment its customers based on their purchase histories, such as frequent shoppers, occasional buyers, and one-time customers. The website can then tailor its marketing strategies accordingly, offering discounts or loyalty rewards to frequent shoppers or creating targeted promotions for occasional buyers.

behavioral segmentation in e-commerce

How to segment customers in e-commerce based on their behaviors


Travel companies can segment the market based on behaviors to identify different travel behavior patterns among their customers. For example, some customers may be frequent flyers who travel for business, while others may prefer budget-friendly travel options.

By segmenting their customers based on travel behavior, travel companies can create personalized marketing campaigns that cater to each group. For instance, a travel company may offer rewards and benefits to frequent flyers or advertise budget-friendly travel packages to those who prefer cost-effective travel options.

behavioral segmentation in travel field

Segmenting customers in the travel field on behaviors

Financial Services

Banks and financial institutions can segment the market by behaviors to categorize customers based on their financial behavior. For example, some customers may prefer traditional banking services, while others may be interested in digital banking options.

By segmenting customers based on their financial behavior, banks can tailor their services and marketing strategies to meet the needs of each group. For instance, a bank may offer personalized investment advice and traditional banking services to customers who prefer a more hands-on approach, while providing digital banking options and online financial tools to those who prefer to manage their finances online.

behavioral segmentation in financial services

Segmentation in financial services based on customers’ behaviors

Behavioral segmentation is an effective marketing strategy that allows businesses to understand their customers' behavior patterns and develop targeted marketing campaigns. By dividing a market based on behavior, businesses can identify and target specific customer groups, increase customer loyalty, and ultimately, increase revenue. Hopefully, this article by Viindoo provides readers with an understanding of this term and helps plan effective marketing strategies.

Understanding Behavioral Segmentation: Benefits and Examples
Viindoo Technology Joint Stock Company, Trinh Thi Ngoc Anh March 26, 2023