Do you know that 65 per cent of customers expect businesses to adapt experiences to their changing needs and preferences? With the advancements in technology, you might think that it should be a simple task to achieve. Then, you are wrong.
Today, 61 per cent of customers think most businesses only treat them as a number. Why is that so? This could be because businesses aren't investing in understanding customer behaviour.
If you wish to better understand your customers' behaviour, you need to perform behavioural segmentation. Let us explore behavioural segmentation marketing and how an e-commerce business can benefit from it.
What is Behavioural Segmentation in E-Commerce?
Behavioural segmentation is how an e-commerce business divides its customers based on their behaviour patterns. Earlier, businesses segmented their customers only based on demographic and geographic data. However, because of its efficiency, behavioural segmentation marketing creates more impactful marketing campaigns.
Here are some essential benefits of behavioural segmentation marketing.
- • Identifies high-value customers : By segmenting your customers based on their behaviours, you can identify the customers who engage the most with your e-commerce platform. For instance, you can find the ones who purchase more, spend more time on your platform, or regularly open your mail.
This data empowers you to determine how to approach these customer segments and how to allocate time, budget and resources. - • Facilities personalised messaging : Behavioural segmentation lets you identify the interests and preferences of your customer segments. Therefore, you can tailor marketing messages to meet the specific interests of these customer segments. Also, it helps you attract them with the right offers on the right products.
- • Personalise customer experience : As discussed, behavioural segmentation gives you an idea of your customer's preferences and interests. It also helps you personalise their experience throughout their journey. You can provide customers with personalised offers, recommendations, and complementary product suggestions to improve their experience. competitive prices.
TechMonk: The Best Behavioural Segmentation Marketing Tool For E-Commerce
Behavioural Segmentation Marketing Examples for E-Commerce
How can an e-commerce business make the most out of behavioural segmentation? When you use behavioural segmentation to understand the customer behaviour at the right touchpoints in detail.
It is essential to consider customer acquisition, their journey through the app, customer engagement, how frequently they use the e-commerce app, and how long you retain them.
Here are the behavioural segmentation marketing examples for e-commerce.
- Purchasing behaviour-based segmentation
- Benefits sought-based segmentation
- Occasion or timing-based segmentation
- Customer loyalty-based segmentation
- Customer journey stage-based segmentation
- Usage-based segmentation
Let us explore them in detail now.
1. Purchasing Behaviour
Most e-commerce customers are busy on weekdays but are more relaxed and spend more time browsing e-commerce platforms on weekends. This is when they make large and impulsive purchases as they have more time to explore products.
Therefore, you can run promotional campaigns giving them exclusive weekend benefits to create urgency and encourage them to purchase. You can also market premium and bundled products to these customers and attract them with social media ads through interactive elements.
At the same time, the weekday strategy for peak hours from 7 to 10 p.m. should be different. You can send them retargeting ads to products they viewed before and give them limited-time offers through push notifications.
2. Benefits Sought
Not all customers seek the same benefits from products on an e-commerce platform. Each customer places a high value on certain benefits these products offer. Knowing these preferred benefits helps you market your products effectively to the customer, which is essential. But how do you know that?
Here is an example from Minimalist, a popular beauty brand in India. Customers who shop from Minimalist can look for products tailored to their skincare concerns. They have a dedicated ‘Shop by Concern’ section on the website where users can choose a concern and shop for a related product. They have also incorporated filters for concerns so that users can find products by combining different concerns at the same time.
This gives Minimalist an idea of the products a particular customer is interested in. Therefore, they send them emails and personalised messages highlighting the unique benefits of their products that meet their concerns.
3. Occasion or Timing
Occasion refers to the time when a customer decides to make a purchase. For occasions like Christmas and New Year, e-commerce businesses usually see a lot of sales. Customers might otherwise return after a certain period to repurchase a specific product they bought in the past. It could be beauty products, groceries, or medicines.
Therefore, you can perform behavioural segmentation to understand when customers return to purchase. This helps you reach out to customers with personalised messages for specific products, which will encourage them to repeat purchases.
Diwali is one of the important occasions in India where e-commerce businesses capitalise on occasion-based segmentation. They use exclusive offers and rewards to attract users and encourage them to purchase.
4. Customer Loyalty
Through loyalty-based segmentation, your e-commerce businesses can determine the level of loyalty a customer has with them. You can focus on existing repeat customers and understand their behaviour patterns and needs.
Loyal customers bring in more revenue for e-commerce businesses and attract others through referrals. So, getting valuable information from the segment can help optimise future campaigns and improve the value proposition. Here is what you need to identify from a loyalty-based segmentation.
- The key behaviours that nurtured loyal customers who engage with loyalty programs the most
- The factors that keep the customer segments happy
- How an e-commerce business can improve the value received from these customers
5. Customer Journey Stage
E-commerce businesses can also segment customers based on their journey stage. But how will that help? It helps you to personalise experiences and align communications to increase conversion. It lets you understand the points where customers engage less to improve your marketing efforts.
It is difficult to segment customers based on the journey stage as customers interact with content in the other stages as well. You can't identify a customer's journey stage by a single interaction or behaviour.
To get an idea of a customer's journey stage, you will have to consider interactions from all touch points. To improve the accuracy of this segmentation method, you can employ a customer data platform to bring behavioural data from all the touchpoints.
6. Usage
When it comes to customer usage, look for the following details. How often do your customers visit your website, and how long do they stay? How long do they spend, and what products do they look for?
Now, you can create usage base segments as follows.
- Heavy users: These customers are the most engaged and purchase more frequently.
- Medium users: These customers purchase your product sparingly.
- Light users: This customer segment purchases much less than others.
TechMonk: The Top Behavioural Segmentation Marketing Tool for E-Commerce
Looking for a comprehensive customer engagement tool that is ideal for e-commerce? Presenting TechMonk, a full-stack Gen AI-powered customer engagement tool for e-commerce.
TechMonk's CDP, which offers 360-degree customer visibility, makes customer segmentation precise and accurate. Therefore, businesses can attract and convert customers with offers and discounts that align with their interests. It classifies customers into 9 RFM segments through easy segmentation based on the Recency, Frequency, and Monetary value (RFM) of events.
In addition, TechMonk’s Dynamic/Static/Drip segmentation can help you understand your customers' behaviour. It lets you micro-segment customers by adding more than one event to analyse customer behaviour and segment them.
Let us find out how to perform a behavioural segmentation on TechMonk with its RFM feature.
- From the TechMonk’s interface, click the RFM tab on the sidebar.
- Select the Create RFM button on the top-right part of your screen.
- Enter a Segment name.
- Select the event you want to create the RFM segments under the Select Recency & Frequency Event field.
- Now, pick the Start Date and End Date and fill in the remaining fields.
- Select the Next button and see the user segments based on the RFM event.
- a. About to sleep
- b. Price-sensitive
- c. Loyal customers
- d. Promising customers
- e. Recent customers
- f. Customers who need attention
- Finally, click the Save section button.
Now, let us explore how we can micro-segment customers based on their behaviour with TechMonk’s Dynamic/Static/Drip segmentation.
- Open Segment from TechMonk’s sidebar and click Create Segment.
- On the pop-up on your screen, enter the name of the segment and choose between Static, Dynamic, or Drip.
- Enter a description, choose to sync with Google and Facebook, and click Save.
- You can choose multiple events in the Customer and Event fields to micro-segment customers and create precise customer segments.
- Finally, click on the Save Segment option.
Do your concerns about e-commerce websites exceed beyond behavioural segmentation? Our comprehensive e-commerce customer engagement solutions will impress you.
- • E-commerce personalisation : Personalise your customers' messages, offers, and experiences through multiple channels, ensuring engagement and satisfaction.
- • Customer journey orchestration : Implement AI-powered 2-way conversational campaigns triggered by events with additional features like built-in nurturing and A/B testing.
- • Omnichannel communication : TechMonk ensures seamless customer experiences by maintaining consistency in reaching out to customers through Email, WhatsApp, and SMS.
- • Gen AI Bot : Offer uninterrupted AI-powered customer support to your customers, reducing handling time and agent productivity.
That’s not all! We have more useful features for your business. Get on a call to find out how these solutions can drive 70 % more sales for your business.
Use Behavioral Data To Personalise Customer Experiences Across All Touchpoints With TechMonk
Conclusion
Behavioural segmentation marketing is a winning strategy for e-commerce businesses. It empowers you to understand your customers’ preferences and tailor their experiences accordingly. Moreover, it will keep you ahead of competitors and help retain your loyal customers.
However, behavioural segmentation marketing will only be as effective if you have complete visibility of your customer’s data. Most businesses do not have a comprehensive idea of customer behaviour as the same data is scattered across silos.
Therefore, investing in a tool like TechMonk will make behavioural segmentation effortless and accurate. In the future, let’s look for more benefits from behavioural segmentation as technology advances.
