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Types of customer behavioral segmentation

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1. Benefits sought
A customer who buys toothpaste can look for four different reasons: whitening, sensitive teeth,
flavor, or price.
When customers research a product or service, their behavior can reveal valuable insights into
which benefits, features, values, use cases, or problems are the most important motivating factors influencing their purchase decision. When a customer places a much higher value on one or more benefits over the others, these primary benefits sought are the defining motivating factors driving the purchase decision for that customer.
2. Occasion or timing-based
Occasion and timing-based behavioral segments refer to both universal and personal occasions.
- Universal occasions apply to the majority of customers or target audience. For example holidays and seasonal events when consumers are more likely to make certain purchases.
- Recurring-personal occasions are purchasing patterns for an individual customer that
consistently repeat over a period of time. For example birthdays, anniversaries or vacations,
monthly purchases, or even daily rituals such as stopping for a cup of coffee on the way to work every morning.
- Rare-personal occasions are also related to individual customers, but are more irregular and
spontaneous, and thus more difficult to predict. For example attending a friend’s wedding.
3. Usage rate
Product or service usage is another common way to segment customers by behavior, based on
the frequency at which a customer purchases from or interacts with a product or service. Usage
behavior can be a strong predictive indicator of loyalty or churn and, therefore, lifetime value.
4. Brand loyalty status
Loyal customers are a business’ most valuable assets. They are cheaper to retain, usually have
the highest lifetime value, and can become brand advocates. By analyzing behavioral data,
customers can be segmented by their level of loyalty so marketers can understand their needs and make sure they are satisfying them. Loyal customers are the ones who should receive special
treatment and privileges such as exclusive rewards programs to nurture and strengthen the
customer relationship and incentivize continued future business.
5. User status
There are many different possible user statuses you might have depending on your business. A
few examples are:
- Non-users
- Prospects
- First-time buyers
- Regular users
- Defectors (ex-customers who have switched to a comp

Titany answered the question on November 12, 2021 at 07:27

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Types of customer behavioral segmentation

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