When you’re trying to resonate with hundreds of thousands of people with varying needs and preferences, marketing segmentation is a must. This allows you to deliver messages and experiences that are highly relevant to different types of customers. Yet if you’re only limiting yourself to the basics such as demographic and geographical segmentation, your efforts will also have limitations.

While it’s important to know the age, gender, and location of your customers, these alone aren’t enough. You also need to find out what they do and how they behave to paint a clearer picture. That’s where behavioural segmentation comes in, allowing you to create even more relevant customer experiences beyond demographic and geographical data.

Read on as we take a deep dive into behavioural segmentation definition, importance, and examples.

What Is Behavioural Segmentation?

As the name suggests, behavioural segmentation refers to the process of segmenting audiences based on their behaviours and habits. This isn’t just limited to their buying habits but also includes what they do online – Which social media platforms do they use? When are they most active? Which news sources/publications do they follow?

This gives you a better idea of the unique needs and preferences of different audience groups. So you can use it to form a smarter marketing strategy that isn’t just one-dimensional. Keep in mind that behavioural segmentation shouldn’t be used on its own. Rather, it should supplement and add more substance and context to other types of segmentation.

Why Do You Need Behavioural Segmentation?

When you divide your market into several smaller segments based on common behavioural characteristics, it becomes easier to create targeted campaigns that will resonate with different types of people. The top benefits of behavioural segmentation include:

• Better Personalisation – It allows you to target different audience segments with offers that are personalised according to their purchase habits. And you can also decide on the best channels and timings to deliver those offers.
• Effective Prioritisation – It helps you identify your most valuable prospects so you can focus your time and resources to target, nurture, and convert them.
• Behavioural Prediction – You can also predict how certain segments might behave based on historical behavioural patterns. This helps you prepare ahead of time and look for ways to influence the outcome.

Five Powerful Behavioural Segmentation Examples

There are different types of behavioural segmentation that you could implement. Here’s a detailed look at each and some real-life examples:

1. Stage in the Buyer Journey

This involves segmenting your audience based on where they currently are in the buyer journey – awareness, consideration, decision, or retention. This will allow you to personalise your messaging, offers, and experiences to boost conversions at every stage.

For example, Grammarly sent out offers to existing free users, encouraging them to upgrade to a paid, premium plan. This email won’t be sent to existing premium users. Rather, it’s only targeted to free users who are still in the “consideration” stage for Grammarly Premium.

Buyer journey stage segmentation is a little tricky as a single interaction or behaviour isn’t enough to tell you where someone currently is in the funnel. Someone who’s already far along the conversion funnel may sometimes go back to an awareness-stage blog post to get a quick refresher, for example.

So for a more accurate reading, you’ll need to combine all the behavioural data from across multiple channels and touchpoints. This will give you a more comprehensive picture of where someone might be in the buyer journey and can be particularly useful for B2B behavioural segmentation.

2. Buying Habits

Buying habit segmentation involves segmenting customers based on the different ways in which they act throughout the buying process.

You could create different segments based on the unique factors that influence their purchase decisions, such as:

• People who look at brand name when buying products
• People most likely to be influenced by online advertising
• People who look at a product’s utility to make purchase decisions
• People who look to social media for purchase inspiration
• People who are likely to be influenced by recommendations from friends and family

Audiense Insights, for instance, comes with a “Purchase Influence Factors” feature that gives you a detailed breakdown of what influences the buying behaviour of certain audience segments.

You could also use this type of behavioural segmentation to further break down your audience based on how they typically shop. How many of them are prone to make impulse purchases? Are they more likely to prefer using credit cards to shop? How many of them are likely to be influenced by targeted advertising?

This gives you the insights you need to deliver experiences and create campaigns that will get each segment to convert. For example, email notifications about “Deals of the Day” could be enticing for impulse buyers. On the other hand, informative and educational newsletters may be a better option to target people who look at product utility before buying something.

One great example is how H&M runs ongoing Instagram ad campaigns, targeting existing customers who have often interacted with their ads in the past. Here, the segmentation is based on customers who are most likely to be influenced by Instagram advertising.

3. Service/Product Usage

Segmentation based on service/product usage is pretty much self-explanatory. It involves segmenting your audience into different groups based on how they’re using your product/service. So it looks at factors like frequency of use, duration of use, favourite features, and use stage (new users vs. seasoned users).

This is a great way to identify the reasons that might compel people to become heavy users and why some remain light users. That way, you can test different methods of marketing and nurturing to turn light users into avid users and to keep your heavy users from leaving.

For example, WordPress does a great job of welcoming new users and easing them into the experience. They send educational emails about how new users can customise their site and get more out of it. Through these emails, they also seamlessly talk about how new users should upgrade their plan to access more features.

4. Customer Loyalty

This involves separating your most loyal customers from habitual customers. Segmentation based on customer loyalty is crucial because it costs five times less to retain existing customers than to acquire new ones.

And it makes sense to know which of your customers contribute to the bulk of your revenue. That way, you can focus on how to keep them happy and maximise their value. And you could also narrow down on the key factors that might influence their loyalty. This will help you find more customers like them and implement smart strategies to nurture their loyalty.

Take a look at the highly personalised “Thank You” email that DAVIDsTEA sent to its VIP customers, for example. The email celebrates the company’s 10th anniversary and takes each VIP customer down memory lane. It details when and where they first bought something from the company, their favourite products, and how much tea they’ve bought.

This is an excellent example of how to segment your most loyal customers and keep delighting them so they don’t leave.

5. Benefits Sought

This involves segmenting your audience based on the unique value they look for in a product/service. You should be able to narrow down on this based on the features, benefits, and pain points that are most relevant to each segment.

For example, certain groups of customers may need skincare products to solve unique problems:

• Sensitivity
• Dehydration
• Discoloration
• Acne
• Dullness

There may also be a group that want organic ingredients and another that looks at price. That means even if two people belong to the same demographic group, they may be looking for completely different benefits when buying a product.

When you separate your audience based on multiple benefits sought segments, you can develop messaging and offers that will be most relevant to each group. So for instance, you can display ads about vegan skincare to Instagram users who follow a lot of vegan-related accounts.

Domestika is an online learning platform that offers courses across different categories – from creative pursuits to marketing and business. But based on the courses you’ve bought in the past, they will send email updates about the latest offers you might be interested in. So if you’ve signed up for an illustration course before, you’ll get email recommendations for the best illustration courses to buy next.

Getting Started with Behavioural Segmentation

When implemented properly, behavioural segmentation offers a multitude of benefits – from nurturing customer loyalty to personalising customer experiences. But you’ll need a strong combination of the right tools to get detailed insights into how your customers and prospects are behaving online.

For this, look no further than Audiense Insights. Using this platform, you can uncover a comprehensive breakdown of behavioural data including – buying mindset, online habits, media affinity, and more. Sign up for a free demo to get started.

Your brand is more than just the colors on your website. And for startups, it’s important to create a strong and memorable brand from the beginning if you want to stand out from the competition, scale your company, and find your ideal customers faster.

Here are 5 simple tools that will help your company avoid branding mistakes, take charge of your visual identity, and set a solid foundation for future growth:

1. Graphic Design Software

The word “design” doesn’t have to be overwhelming. Before deciding on your startup’s logo, colors, designs, and overall tone, consider working with a brand strategist who can translate the core ingredients of your startup into a visual identity that speaks to your target market.

Brand strategists have expertise in the psychology of colors, shapes, textures, and words, and they will work with you to make sure that your branding appeals to your target audience. Once you have those basics of your brand established, there are several tools that can help your company refresh and maintain your visual identity.

The absolute best graphic design tool for non-designers is Canva. While the free version has a lot of functionality, the paid plans offer more customization such as the ability to import your exact brand fonts and colors.

But if your company handles all of your design in-house, you will need something more advanced than Canva. In that situation, I would recommend Adobe Creative Cloud to startups who work on their designs in-house, as it includes top-notch design software like Photoshop, Illustrator, Lightroom, InDesign, and more.

“Branding is what people say about you when you are not in the room – Jeff Bezos

2. Visuals & Creative Imagery

Have you ever wondered where your competitors get those beautiful branded photographs that end up on their website? While it’s possible that they worked with a photographer, it’s also likely that much of their imagery comes from stock photos.

Here are my recommendations on the exact places to purchase stock imagery to improve your company’s branding:

• Creative Market – A treasure trove of quality visual imagery where you can buy anything from stock photos, to branding mockups, to social media templates (Facebook cover photo, anyone?), to custom fonts… the options are nearly endless.
• Adobe Stock – Beloved by designers, and the platform offers tiered pricing plans based on your image needs and download quantity.
• Pixels – If you’re on a tight budget and just need to grab an image or two for a blog post, you may be able to find what you need on Pixels – which is great because all of the photos and videos on Pixels are free!

3. Social Media Scheduler

You’re a leader. You’re an entrepreneur. Your staff, board, funders, and admirers depend on you to make big decisions, lead the ship, and plot the vision towards your company’s future. You don’t have time to stare at a blank screen every day wondering what to post on Facebook.

By using a social media scheduling tool, you can sit down for a few hours, schedule batches of content, and schedule the dates and times when it will post to your accounts over the next couple of months. Then, once the content is posted, you only need to worry about responding to comments and engaging with your customers. 21^st century efficiency at its finest.

Popular social media schedulers include Buffer and Hootsuite, both of which include free and paid plans. Not sure what exactly to post? Check out these social media ideas from influential businesses. And if the idea of writing and planning months of content still overwhelms you, our next tool will help you stay organized and on-brand.

4. Editorial Calendar

When it comes to your content, it’s time to step it up a notch and start thinking like a media outlet. Every piece of content that you put out as a company, whether it’s an e-mail blast, blog post, social media post, podcast, or video, needs to be aligned with your brand.

Each major magazine maintains an editorial calendar which outlines the overarching theme for each of the upcoming 12+ months. By establishing a monthly content theme in advance, they create a framework to generate and organize their ideas.

Consider creating an internal editorial calendar that will guide your startup’s content over the next 6-12 months. The software tool you use to maintain your editorial calendar isn’t that important — I like to use Trello, but you can also create a simple numbered list in Google Docs or Microsoft Excel. You may be surprised at how quickly the creative juices flow once you have an editorial calendar in place.

“Design is the silent ambassador of your brand.” – Paul Rand

5. In-Person Networking

Offline efforts count towards your branding too! And if you run your entire startup from behind your laptop screen, you miss out on ample opportunities to build your business offline and gain local referral partners.

If you’re new to in-person networking, start by visiting Meetup.com or Eventbrite.com where you can browse for events in your area. Think outside the box when it comes to selecting events to attend. For example: If you’re a chiropractor, it makes sense to attend local holistic health meetups. But you could also attend a travel event and meet digital nomads who don’t yet realize that a chiropractor can help them recover after long plane rides.

Remember that you’re not at the networking event to make instant sales, you’re looking for referral partners and connections. Don’t be the person who tries to shove your sales pitch down everyone’s throat upon meeting them.

As you can see, there are many simple online and offline resources that can help you spruce up your branding, reach new customers, and pique the interest of your target market. If you take branding one step at a time and start with the tools above, you will be well on your way to creating a brand that your customers will cherish and remember.

Have you used any of these branding tools before? Are there any additional tools that have helped your startup’s branding shine? Share your thoughts below!

Today’s ideas are tomorrow’s winning businesses. Ideas executed brilliantly and with proper investment bring your business success. That is how the world of business got the likes of Apple, Google, McDonald’s, Amazon and so on.

But why in spite of the brilliant and promising ideas at the core of their business, many startups fail to attract investors? Why do investors hesitate to put their money into some startups? Well, investors have reasons and only by deciphering these reasons we could get hold of some deterrent factors that hold them back.

Let us explain some of the vital factors that prevent investors from putting their money in the startups below:

1. Inefficiency or Absence of Leadership Qualities

Inefficiency is the most significant deterrent factor for pulling the success of most startups. This can also be referred to as the lack of leadership qualities. Investors always want to make sure that they don’t lose their money through a company that has an extraordinary business model but no efficient and skilled business leader to make it successful. When fetching investment from investors, you need to offer a clear prospect and detailed plan of how you are going to achieve the goals.

2. Lack of Trustworthiness

An investor puts his money on a venture purely on the basis of the credibility and trustworthiness of the business. This is why besides having a sound business plan with clear objectives, you need to establish the integrity in terms of the security of the investor’s money and how the fund is going to be invested to give results as per business plan.

If an investor has a feeling that the startup may not have enough customers to fulfil its financial liabilities or if it finds that the business is hiding some information, it may further push the trust of the investors down. Total transparency and establishing the faith of the business brand are crucial for finding investors in favor.

3. Lacking Experience in Business Management

You have a great business idea backed up by a sound business plan and solid trustworthiness based on your background, but you have zero experience in managing a business. This is a serious reason for an investor to deny making any investment in your business. An investor cannot put his money just to allow you trying and learning your management skills the harder and riskier way. Uncertainty is the single biggest turn-off factor for any investor and lack of managerial experience is synonymous to that.

4. Business Model is Not Sound Enough

You have a business idea, some efficient, competent and experienced professionals as leaders, the great stamp of trust and pretty much everything that make a company look promising. But what about your business strategy and business model? Are they sound enough to take on the market competition and challenges for business growth? Well, this is what investors are most interested in.

In most cases, a business model is what makes an investor think twice and even take a backward step from investing in a startup. After all, your business model and strategy will decide how your business and products will be able to withstand competition and become victorious.

5. Taking Investors for Granted

This is a big mistake on the part of many startups. Just by becoming confident in the potential and the soundness of the business model and prospect, a business can consider getting investors on board requires just a little effort and time. But in reality, getting investors on board is the toughest thing a business can think of.

This is why without proper and meticulous preparation, it would be foolish to approach investors for your business. Most investors receive hundreds of such emails and a similar number of approaches through other means and they coldly just let them pass. This is why you need to send them very detailed proposals backed by strong recommendations and referrals.

6. Targeting the Wrong Investor

Every business has a target customer base, right? Not all customers are interested in every product in the market. Similarly, not all investors are interested in your business. Investors based on their prior experience and industry exposure, put their money in businesses that they know like their own palm of their hand.

So, targeting an investor who has no interest in your business will only drain your energy and bring you unnecessary frustration. When you are seeking investors for your software startup, don’t approach someone investing in real estate business.

7. Non-Realistic Proposal for Funds

Investors normally come with huge experience of your industry and so they have a clear idea about the fund requirements for your business startup. Moreover, they already have invested in other ventures or have gone through many proposals. Naturally, they have every bit of estimate already in their mind. So, any proposal claiming a lofty and unrealistic amount will only face rejection.

This is why it would be wise to become meticulous about your estimation of the required fund and calculation of various cost factors. Have meticulous details about every facet of investment backed up by breakup of the costs. Only when you can convince them with correct estimation, investors can take interest in discussing the matter further.

8. Make Sure Your Product Solves a Customer Problem

Will any investor put money in building a simple calendar app now? No, simply because such an app idea has no value for the end users now. Will an investor put money in a product that has already been outdated and has no use? No, no investor has to even go through such a proposal for dismissing them.

Well, to fetch investment, your product must be thoroughly customer-centric. It not only has to solve a problem but has to deliver some competitive value in comparison to similar products in the market.

Obviously, finding an investor for a new business is not an easy task, considering the huge competition that businesses need to deal with. But, if your business idea is unique and you fill all those requirements correctly as mentioned above, finding investors may not be as tough as it sounds.