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Behavioral Segmentation: What is it?

by Jerusha Songate. Last updated on June 13, 2024

This article focuses on Behavioral segmentation. This segmentation gives you insight into how customers interact with your brand, so you can focus on your marketing campaigns effectively.

Knowing more about your customers and their behavior helps you to market to them successfully. Segmentation is a powerful strategy that groups your customers according to a specific criteria.

Baremetrics offers a step-by-step plan to help you track segments and compare growth, along with tools that make this process fast and easy.

Ready to get more strategic insights from your sales data? Baremetrics helps you access the information you need. Sign up today for a free trial.


What is Behavioral Segmentation?

Behavioral segmentation is one of the four types of marketing segmentation. It examines consumers’ decision-making processes and shopping activity.

Types of segmentation include the following:

  • Behavioral, or decision-making process and shopping activity
  • Psychographic, or intangible aspects related to how customers self-identify – for example, by social group or class
  • Demographic, or criteria like age, income, education
  • Geographic, or location of the customer group

Behavioral segmentation helps marketers to answer key questions, such as:


i. When do your customers buy?

You can group segments with the time they spend in the sales funnel, before a deal closes.


ii. What do your customers buy?

You can group segments by what they choose to purchase after engaging with your company. For example, customers who bought an additional service or upgrade after a 12-month subscription vs. those who canceled their subscription.


iii. Why do your customers buy?

This segmentation allows you to analyze price points to determine if that’s a deciding factor in consumers’ purchase decisions. Alternatively, you may identify other features that keep your loyal customers coming back.

For example, your rewards program may affect purchasing decisions. If so, you might determine that this is the most effective way to enhance your marketing efforts.

You already have the data you need to gain marketing insights. Baremetrics helps you visualize that data and turn it into actionable information. Sign up today for a free trial.


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Examples of Behavioral Segmentation

Behavioral indicators help you see what customers want – and conversely, what turns them away from your brand. That makes it possible for you to do more of what works and less of what doesn’t.

These are some of the details you can analyze with behavioral segmentation:

  • Purchasing behavior: What is the average cart size? Is the cart size steady, increasing, or going down?
  • Benefits sought: What does the customer want? Is it utility, branding, or quick delivery? Do they buy more with a loyalty program or after specific messaging?
  • Timing: When is the customer buying? Is it a monthly purchase, seasonal, or one-and-done?
  • Customer journey: How long does your sales team have to nurture leads before deals close? What can you learn from the behavior patterns in the buyer’s journey?
  • Customer loyalty: What is the length of the customer relationship? Are you keeping customers after the initial sale? What is your retention rate?

Behavioral segmentation helps you group customers, with the answers to these critical questions, so you know what goes into purchase behavior and what drives purchase decisions.

These examples illustrate how a behavioral segmentation strategy offers insight into your customers:

  • Look more closely at the cohort of customers who make monthly purchases. Examine what they are buying and why. If one particular package attracts steady interest, perhaps a modest add-on, cross-sell, or upsell could also appeal to this group of people—and you can market to them through social media or e-commerce channels.
  • Understanding data related to your retention rate can help reduce churn in this group of customers, increasing your long-term revenue.

How Baremetrics Can Help with Behavioral Segmentation Analysis

Most SaaS companies have the data and metrics they need in their existing systems to do segmentation analysis related to behavioral patterns, but only Baremetrics can bring powerful visualization to that data.

It’s an opportunity to see data clearly, bringing new depth to what you know about the customer experience.

With Baremetrics you can:

The power of the Baremetrics platform is its ease of use and robust functionality. It reduces time wasted on data consolidation, so you can focus on the value-added tasks of analysis and strategy development.

Try it out for yourself with this free trial of Baremetrics.

Jerusha Songate

Jerusha has a strong interest in SaaS and finding new business opportunities. She writes for Baremetrics as part of her passion for business journalism.