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Customer behavior as a way of segmentation

Let us first understand what is customer behavior. When we talk about customer behavior or buyer psychology, we are looking at how people think, what people believe, why they act as they act, and when are they more likely to act in a certain way or take a certain decision.

We analyze things such as what do they buy, and how often do they buy? Who is your target? Are you positioning correctly to your audience? What influences the purchase?

This and more questions are answered and used to segment your audience, instead of just using a classical demographic segmentation.

Which are the Benefits of this kind of segmentation?

Having this information, you are closer to reaching your customers at the exact moment that they need to be reached so as to be influenced by your brand or product communication more efficiently. Based on AIDA model, (see more about AIDA in this post), you can reach your customer in one of the different steps of phases such as Awareness, Interest, Desire, Action (purchase). Understanding how they behave and in which part of the model they are in that specific moment would help your brand succeed in the communication intention.

What you can get of this information?

Information about how your brand or product is perceived and having this, you can understand how can you innovate? How to create and perform the 4ps (Product, Price, Placement, Promotion). How to make better segmentation, how to develop a product strategy plan: understand what drives your audience to a purchase action.

Which are the cons?

As with everything in life, customer behavior has its disadvantages or cons. Let’s explore them:

At first sight, we may be leaving some of them aside by not considering potential customers that aren’t behavior targeted but yes part of our brand segmentation in terms of demographics? A frame of reference can be delivered constructed on personality, but there is more information about people that may be useful.

Is customer behavior always the same? We are talking about a way of acting, a way of think. These concepts are not written in stone, right? People may change, vary or think in a different way depending on the context. If you target by age or gender, you will probably be more accurate in the fact that whom you are reaching is exactly of that age and that gender.

As a qualitative data-based, customer behavior is based on forecasting and assumptions that may not be that certain or accurate.

My recommendation for you is to have a little bit of this and a little bit of that: Customer behavior is definitely a new and excellent way to segment your audience and understand how they act. There is no harm in considering traditional segmentation too, and making your data more valuable!

Hope you liked today’s “Let’s talk about…” topic, I look forward to reading your comments and positions about it!

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