Why behavioral segmentation improves more than just email marketing

Email marketing has long been considered King when it comes to B2B marketing.  According to Imagination, email marketing is the third most popular marketing channel.  And, Procurious found that 73% of millennials prefer to use email for business communication.  So, it makes sense that marketers often prioritize it over other channels!  But, it’s crucial to consider the changing landscape of email marketing, and of marketing altogether.  With so much data at our fingertips, it is up to marketers to develop a personalized experience across all channels — and the benefits of implementing such a strategy are massive!  It’s time to adopt segmentation throughout your entire marketing approach.

“Personalization – it is not about first/last name. It’s about relevant content.” – Dan Jak

Market segmentation can skyrocket business email campaigns.  According to MailChimp, open rates are 14.32% higher in segmented email campaigns.  And, click throughs are more than 100% higher.  But it’s not just emails that segmentation can help take to the next level.  Segmenting your audience can positively impact all your marketing channels and have an all-round incredible effect on your business.  Behavioral segmentation is often favored for B2B organizations, especially as it has such a focus on the sale.  Segmentation can help B2B marketers gain an understanding of their key decision makers.  Getting to know how your buyers behave on the journey towards making a purchase is extremely valuable insight!  It can help you make predictions and recommendations.  Most importantly, you’ll be able to get the right product in front of the right person at the right time.

“Selling to people who actually want to hear from you is more effective than interrupting strangers who don’t” – Seth Godin

Customer segmentation is all about getting to know your audience.  Once you know who they are, you can establish what they like.  And, eventually, you’ll learn what they are like as buyers.  With so many options, it has never been more important to meet the needs of your customers!  If you are thinking of implementing a segmentation strategy, Webeo Futures can help!  We have hordes of information — from the basics of what segmentation is, to an overview of which segmentation strategy could be most effective for your business.  You’ll soon discover the myriad of benefits to your business!  Behavioral segmentation works by dividing your audience based on their digital behavior.  It predominantly splits customers based on one of the following variables:

  • Purchase behavior
  • Timing-based behavior
  • Usage rate segmentation
  • Loyalty status segmentation
  • Benefits sought segmentation

It is a key step in the personalization journey and brings benefits to all your marketing efforts.  Let’s start with at the beginning.  Segmentation helps with personalized communications, which in turn improves relevance.  According to an Epsilon study, Customers who click on recommendations have a 70% higher purchase rate!  So, by segmenting your audience and feeding each segment relevant content, customers will likely spend more with you.  This, in turn, will positively impact your conversion rate.  In fact, Econsultancy found 93% of companies see an uplift in conversion rates as a result of website personalization.  This is great news for your business as a whole!  A positive conversion rate brings with it so many benefits — from lowering your cost per lead to boosting your SEO.

More click-throughs and purchases mean more sales.  Marketers see an average increase of 20% in sales when using personalized web experiences, according to Smart Focus.  So, it’s worth considering segmentation if you’re looking to boost your sales.  It also helps tackle the age-old problem of proving strong return on investment.  McKinsey research found that personalization can deliver five to eight times the ROI on marketing spend.  There’s good news for customers, too!  Not only does segmentation bring tons of benefits to marketers, salespeople and business, but it also improves customer experience.  According to Evergage, 98% of marketers see personalization helps advance customer relationships.  This helps with retention, loyalty, upselling, cross-selling and reputation!  Phew — that’s a lot of rewards!  So, as you can see, segmentation can boost a lot more than just your email marketing.  Although, it does a stellar job of that, too!

As marketers, we focus a lot of effort driving prospects to the company website.  But what happens once they get there?  Segmented communications are great, but your website needs to match that quality.  According to Evergage, 11.4% of customers feel frustrated when website content is not personalized.  After spending valuable time and money leading prospects to your site — it seems a little behind the times to leave them to explore a one-size-fits-all website that may not meet their needs.  Website personalization can save the day!  Personalization software, like Webeo, creates bespoke customer experiences for website visitors.  The appearance, language and greeting will alter based on the user’s IP address, providing the ultimate personalized marketing experience.

Discover Webeo today. Our global-leading website personalization software will maxmize the return you see from your website and take your marketing to the next level. Book your free demo now!

How is behavioral segmentation changing customer experience?

“There is only one boss.  The customer.  And they can fire everybody in the company from the chairperson on down, simply by spending their money somewhere else.” – Sam Walton

As a society, we have so many options when it comes to purchasing products.  The marketplace is flooded.  Even something as simple as a water bottle comes with a whole host of unique selling points, factors to consider, and a legion of loyal customers.  With so much choice, standing out from the crowd has never been so vital to success.  And, in-turn, maintaining customer loyalty is more important than ever.  So, as marketers, what can we do to keep our customers interested?  Customer experience is your very best friend!

A one-size-fits-all approach will no longer cut it for the modern consumer.  Marketers need to be working towards personalization for their brand to succeed.  A personalized approach adds to the overall customer experience your company provides.  According to American Express, 33% of American customers say that just one instance of poor service can lead them to switch companies.  One miscommunication or bad transaction could cost you your biggest customer!  InMoment found that 50% of loyal customers have left a company for a more relevant competitor.  This is where behavioral segmentation is changing customer experience overall.

“The only way to win at content marketing is for the reader to say, ‘This was written specifically for me.'”– Jamie Turner

Behavioral segmentation is changing the wants and needs of the modern-day buyer.  But more importantly, it is changing how marketers should view customer experience.  It should be considered an important part of the user journey.  And, is integral to your marketing and wider business strategy.  It works by splitting your audience based on the way they behave throughout their buyer journey.  If you want to delve deeper into the whos, whats, and whys of behavioral targeting, explore Webeo:Futures here.  We’re passionate about all things personalization — so if you’re looking to get to grips with what segmentation is, and the different ways to segment a market, it is a great place to start!

In short, there are a few different behavioral segmentation variables.

  • Purchase behavior
  • Timing-based behavior
  • Usage rate segmentation
  • Loyalty status marketing
  • Benefits sought segmentation

Each one presents a way of positively impacting customer experience.  Market segmentation means audiences receive tailored messaging and recommendations.  Marketers can capitalize on well-timed communications, reward loyal customers, and emphasize the benefits that matter most to each customer.  In turn, customers receive an experience that meets their needs as a buyer.  And, they are guided through their journey towards making a purchase.

Buyers are no longer happy to be tarred with the same brush and expect a personalized service.  Positive experiences matter to buyers, and they won’t settle for less!  The Temkin Group found that 65% of buyers feel receiving a positive experience with a brand is more impactful than great advertising.  Plus, 83% of buyers will pay more for a positive customer experience.  This should be pushing marketers to assess where their priorities lie.  And, not only does it draw customers in — it’s a crucial part of customer retention, too.  HubSpot found that 93% of customers are likely to make a repeat purchase if a company offers excellent customer experience.  The statistics speak for themselves!

Taking your customer’s digital behavior into consideration is pivotal in providing great customer experience.  Think about the last time you bought something online.  As a modern-day buyer, we crave efficiency.  According to Accenture, 75% of customers are more likely to buy from a retailer that knows them by name.  We’re willing to give away data if it makes our overall experience better.  MarketingLand found that 60% of shoppers are happy for their interests and behaviors to be used by retailers to deliver relevant offers and expedite their experience.  And, if we get a personalized experience, we’ll likely come back to you!  Millennial brand loyalty increases by 28% through receiving personalized communications, according to Smarter HQ.  This is important to consider for B2B organizations too, especially as millennials are fast moving into decision-making roles.

In a fast-paced, ever-evolving world, customers don’t have time for lazy marketing.  Especially business customers!  With so much quality data, software and options available, there is no excuse for generalized marketing in the now — or ever again!  Behavioral marketing revolutionizes the way marketers think about their audience.  And, it is a huge leap towards personalized marketing.  Your website should be the hub of your business and point visitors towards converting.  Website personalization is the icing on the cake and the future of online experiences!

Discover how website personalization can create the ultimate customer experience for your website visitors through site personalization!  Our leading software tailors customer experiences based on IP address for the ultimate in personalized marketing.  Discover Webeo and book a demonstration today!

Why behavioral segmentation beats demographics

B2B marketing isn’t easy.  And neither is segmentation marketing!  There is no definitive, one-size-fits-all solution when it comes to market segmentation.  Selecting only one can be tricky, and it may not actually be best practice.  In fact, to compete with the advances of technology, it is crucial to put more than one in place.  Using a clever combination of market segmentation criteria is the way forward.  For B2B organizations, behavioral segmentation has some advantages that stand out above other methods.  Especially when compared to demographic segmentation.

Demographic segmentation divides the market by subgroups of the population.  It has been a popular method for years.  But how useful is it for B2B marketers?  Well, we can look at the demographics of decision makers.  Their gender, age, education level, income, marital status and more.  Or, we can alter the demographic categories to meet a business context.  How old is the business?  What size is the business?  What is the revenue?  This information is useful but limited.  And, it relies on assumptions. In 2019, any marketing technique that relies on stereotypes seems somewhat outdated.

Decision-makers of the same age or gender won’t always want the same thing.  And two businesses of the same size may have completely different needs.  To assume they do, could do more harm than good.  Basing marketing decisions on assumptions is often an unreliable method.  As consumers crave and demand personalized content, demographics are becoming even less valuable.  There is a time and a place for demographic segmentation, and in some cases it works well.  But, for B2B marketers, there is a clear winner: data-fueled, insightful behavioral segmentation.

Behavioral segmentation has a primary focus on the way customers behave.  This is great for marketers; especially as they begin to align with sales teams.  According to HubSpot, 1 in 4 companies say they have misaligned sales and marketing teams.  This won’t come as a surprise if you know that 50% of sales reps waste time on poor prospects, according to Sales Hub.  These prospects were likely drawn in by marketers.  See where this is going?  Aligning goals and objectives is imperative to making that conversion.

For so long, marketers have focused on leading the horse to water.  But once we draw them in, we often leave them to their own devices.  Learning how customers behave on the lead up to making a conversion makes all the difference.  Marketers can help guide prospects towards a sale, and sales teams know when to pounce.  No matter what we’re buying, we all exhibit different behavior when shopping online.  Behavioral segmentation considers this and helps marketers point customers in the right direction. And, it considers several variables, too — so marketers can get to grips with valuable data.  And, in turn, they’ll see a great return on investment and improved CRO!

Look at the purchasing behavior of your audience.  There will be impulsive customers and hesitant buyers.  Some shoppers trawl the internet looking for the best price; others are happy to pay more to get the job done fast!  Segmenting audiences this way does incredible things for your marketing approach.  If you know a buyer is impulsive, not only can you feed them relevant products, but you can also upsell and cross-sell.  If a client is hesitant — or likely to leave a product in their basket for longer than you’d like — create a sense of urgency.

Find out when your customers want your product.  How often do they use it?  Do they buy it regularly or only on occasion?  Are they using it to its full effect?  Gaining this information opens a whole world of timing and usage-based opportunities.  Send helpful reminders and prompts to renew or buy more.  Make sure you’re in front of your audience when they need you and remind them that you’re there even when they don’t.  Behavioral segmentation also enables marketers to get inside their customers’ heads. Segment based on the benefits sought from you and gain new unique selling points.  Segment based on loyalty, and you know exactly who and where to focus on.  Find out who to reward, and who you’ll need to work on to entice back.

Behavioral segmentation relies on quality data.  This data is a little harder to get hold of than your standard demographics.  But valuable data brings valuable opportunities.  So, put in the time, effort, or budget you need to get to know your customer segments and their buyer behavior.  The knowledge you’ll gain is beneficial to your business and you’ll reap the rewards.

Webeo enables users to create personalized website experience for its visitors.  Using segmentation, users can determine the experience customers receive.  Loyal customers, key accounts and target market segments get an unforgettable experience.  Greet visitors by company name, and display imagery that meets their needs.  Discover the power of website personalization software and request a demonstration today!

Is technology the end of segmentation?

Ever-improving technology has us asking all kinds of questions.  Will technology replace my job?  Can artificial intelligence do it better than we can?  Will robots take over the world?  Of course, some are more realistic than others.  While some tech-related questions present debates that are light-years away — some are valid.  Especially considering the rise and growing success of marketing automation.  According to Invespro, the MA landscape is thriving.  And, it’s proving powerful!  It drives an average of up to 14.5% increase in sales productivity.  It sees a 12.2% reduction in marketing overhead.  And, 80% of marketing automation users saw an increase in leads thanks to the software.  So, it’s doing something right!

The more advanced technology becomes, the more marketers are capable of.  Not only does it speed up and streamline processes, but it can cut the need for some processes altogether.  Even the ones that have stood the test of time; like customer segmentation.  This process helps marketers divide their audience into groups that share similarities.  They can establish their target market and give them they content they need.  This is where we find ourselves asking: could technology be the end of market segmentation?

Marketing software can access a myriad of valuable data.  And with great data, comes great marketing opportunities!  With increased ability to personalize, and a demand for individualization — is segmentation over?

The answer isn’t simple.  It isn’t over, but it is evolving — undergoing a re-brand, if you will!  To remain relevant, segmentation needs to adapt to keep up with growing options.  The more data marketers can get their hands on, the more tailored their communications can be.  Technology means segments will eventually be as narrowed down as possible: to the individual consumer.  This is what we know as personalization.

So, how can segmentation evolve to keep up with marketing software?  There are a few different ways it can compete with and support technology.

First, marketers can use it as a tool to aid personalization.  Using segmentation in partnership with high-quality data is a recipe for success.  This is great when establishing your dream customers, for example.  By segmenting your existing customers, you can see who your ideal audience is.  Then, using readily available data, marketers can explore similar companies that fit these criteria.  Without first segmenting, marketers wouldn’t know what to look for.  And without the advancement of technology, acquiring data would be much tougher.  See? A match made in heaven!

Next, applying more than one of the types of market segmentation at a time could become the norm.  There are several to choose from; but combining a few helps whittle you audience down.  Use demographic segmentation, psychographic segmentation, geographic segmentation and behavioral segmentation together to gain incredible customer insights.  This leaves little to the marketer’s imagination and removes the need for guesswork.  Advanced technology grants us access to this data, making it easier than ever to get hold of.

Finally, marketers need to understand that things change fast.  Segmentation must evolve; and so must your marketing messages.  What once worked for your target audience may no longer be relevant.  The rate at which our interests change has never been faster thanks to the internet.  Stay ahead of the game and on top of your data.  Keep an eye on changes, learn from mistakes, and adapt processes for ultimate success.

Personalization isn’t a new concept.  Website visitor tracking, for instance, in its most simple form, goes back as early as the 1990s.  And, even then, it was reliant on technology to work.  However, marketers are still behind the curve when it comes to adopting total personalization.  According to Dynamic Yield, marketers are at the beginning of their personalization journeys.  Only 5% of marketers use data to find personalization opportunities through machine learning.  And, 61% of companies don’t have the time or budget in place to make the most of personalization.  So, in the meantime, segmentation is quite safe!

The segmentation process has its flaws, of course.  Tarring everyone with the same brush isn’t always effective.  And, it can sometimes do more harm than good!  But customers will always share similarities and exhibit similar behaviors.  That’s a fact.  While marketers work towards personalization, segmentation provides excellent insight and helps tailor communications.  For businesses that can see personalization on the horizon, segmentation is crucial.  Especially if you want to see an improved CRO and ROI.

Epsilon Marketing found 80% of consumers prefer to do business with a company offering personalization.  Market segmentation is a key step when it comes to website personalizationWebeo is a leading personalization software, offering unlimited personalizations.  By segmenting audiences, businesses gain an understanding of their most valuable clients.  Your website is the hub of your business and the aim should be making visitors convert to customers.  Especially visitors from your key accounts or target segment. Discover the power of personalization and request a demo today!