Behavioral marketing segmentation and Inbound Marketing can be the best of friends, and here’s how! But first, let’s start with a small introduction on what these concepts mean.
What is Behavioral Marketing?
In the past, marketing to customers based on behaviors, such as how many pages they browsed on a website, was at most primitive. These insights may give you a general idea of what a buyer might be involved with, but they didn’t reveal specifics.
Behavioral marketing has transformed how companies engage. But what must you remember about it, and where should you begin?
Behavioral marketing is a potent means of obtaining data on customer behavior in an attempt to segment and target audiences with pinpoint accuracy. This approach to marketing focuses on individual trends of interaction and activity in order to meet the target market’s distinct motivations, preferences, and needs.
In more detail, behavioral marketing leverages web analytics, cookies, browsing history, and related insights, to gather data about a company or brand’s target audience’s online / offline activity, interests, intents, geolocation, and other variables.
Behavioral marketing includes a wide range of marketing methods such as remarketing (also known as retargeting), email marketing, product recommendations, and more.
Retargeting and remarketing take into account the pages and items you’ve visited and display them to you again even when you’re not on the actual site. In their own advertising networks, Google and Facebook each provide retargeting alternatives.
These are all aspects of behavioral-based marketing that can be employed as solo tactics or coupled for an even stronger effect on the target audience.
As per McKinsey, firms that use consumer / behavioral data beat their rivals in terms of sales growth (85%) and gross margins (25%). Yet, behavioral marketing has some drawbacks, specifically for the consumer; for example, Orbitz exploited behavioral marketing to promote more costly hotels to Mac users versus PC users.
What is Segmentation in Marketing?
Rather than giving a blanket message to all audiences, the idea is to segment them in a precise approach and present highly relevant content and offers that consumers are more likely to engage with to select your brand over your competitors.
Market segmentation refers to grouping prospective clients into groups or segments with comparable demands and responses to marketing actions. Market segmentation allows businesses to target different types of buyers who see the total value of diverse products and services differently.
Segmentation enables a company to boost overall efficiency by directing available resources toward operations that yield the highest ROI. The purpose is to empower the business to differentiate the product or service based on the market segment’s shared attributes.
Corporations can segment markets in a variety of ways, including:
- Geographically (area/region)
- Demographically (age, gender, family structure, income…)
- Psycho-graphically (socioeconomic standing, lifestyle, persona…)
Relation Between Behavioral Marketing and Segmentation — Behavioral Marketing Segmentation
The combination of these two marketing components is known as Behavioral Marketing Segmentation.
Behavioral Marketing Segmentation is a marketing method that splits clients into categories based on their behavior patterns while dealing with a certain business or website.
Customers might be divided into categories based on the following criteria:
- Attitudes about your product, brand, or service;
- Attitudes about your product, brand, or service;
- Overall understanding of your brand and its offerings
- Purchasing habits.
Using behavioral data instead of standard demographic and geographic segmentation approaches enables for the implementation of more successful marketing initiatives. At the very least, Behavioral Marketing Segmentation provides marketers and company owners a more comprehensive understanding of their target population, allowing them to customize products or services to specific client demands.
Here are four more advantages of Behavioral Marketing Segmentation:
- Determines the most engaged and interactive users
- Promotes communication accuracy
- Delivers finely tuned personalization
- Increases brand loyalty
What is Inbound Marketing?
Marketers are finding it increasingly difficult to differentiate themselves from competition while seeking to retain existing consumers. Inbound Marketing’s more natural and delicate approach to promoting a brand is the way to go, as opposed to orthodox advertising strategies such as pushing ads about certain products and/or services via outbound marketing means (newspapers, journals, direct calling, etc.), which tend to produce low results due to their disruptive nature.
Inbound marketing is a method for attracting prospective customers by guiding them through the whole process, from the moment they first interact with the brand until they are converted to paying customers.
The use of non-invasive approaches is the most significant part of the Inbound Marketing Strategy. It is about the client approaching the firm rather than the company upsetting the former’s everyday life with aggressive promotional approaches. Some of the inbound methods are targeted content marketing, social media marketing and engagement, SEO, offers/trials, and post-purchase follow up.
Relation Between Behavioral Marketing Segmentation and Inbound Marketing
Well, since Behavioral Marketing Segmentation render ads or promotions more targeted and specific to different audiences and Inbound Marketing allows marketers’ efforts to blend in with the content that prospects tend to prefer, it can produce substantial differences in prospects’ engagement with the targeted offers, products, and/or services!
Targeting is the procedure of assessing the attractiveness of customer segments and deciding how to attract them. The client segment chosen by a company is mostly determined by the product and service offered. It also influences the marketing strategy that will be used by the organization. Indistinct markets lend themselves well to aggressive marketing.
Rather than bombarding customers with advertisements and hoping that part of the marketing effort resonates, inbound marketing will provide answers to prospects’ questions in a seamless way for each user profile and then appropriately adapt the marketing messages.