In the business world, there are many forms of marketing that companies can implement to encourage customers to buy. Behavioural marketing is a robust method of collecting data to segment and target audiences.
Behavioural marketing can also help prevent consumers from being inundated with unwanted or unrelated ads. With this type of marketing, companies focus on individual engagement patterns to identify the specific needs of their customers.
Next, we will tell you what behavioural marketing is, its types and benefits.
What is behavioural marketing?
Behavioural marketing is how companies target audiences based on their behaviour, interests, intentions, geolocation, and other metrics.
This data is collected through web analytics, cookies, search history, and other insights.
Organizations can deliver relevant content and offers instead of general messaging by segmenting audiences based on specific behaviours or user profiles.
Types of behavioural marketing
When it comes to behavioural marketing, there are many strategies that a company can implement.
While some tactics are effective, many can be combined to create a solid behavioural marketing plan. Let’s look at some of the most popular types of tactics:
Everyone has seen what happens when you shop online: You go to checkout, and a window shows items that are often purchased with what’s in your cart. This upsell technique is a great way to engage potential customers in cross-sell or upsell opportunities.
This tactic is incredibly effective. According to McKinsey, cross-selling and category penetration techniques, such as product suggestions, can increase sales by 20% and profits by 30%.
Product suggestions are included in behavioural marketing because an action (putting something in a cart) leads to targeted sales suggestions.
For businesses using Google and Facebook for their marketing efforts, remarketing and retargeting strategies could be a unique approach to driving sales.
Remarketing strategies focus on taking pages or products a customer has viewed and shown them again once the potential buyer has left the web page. This additional opportunity for consumers to view products again could help drive traffic to the website or convert product sales.
Many organizations currently use email marketing as part of their marketing strategy, but only some harness the power of behavioural targeting. An example of a behavioural targeting email marketing strategy is abandoned cart emails.
You can send content and emails specific to those products or categories by targeting customers who have items in their cart for an extended period.
Ultimately, this creates a more personalized experience for the consumer.
Of all the behavioural marketing tactics, demographic targeting is one of the most widely used of all the behavioural marketing tactics in the business world. Ultimately, organizations use criteria such as age, geographic location, educational level, and even gender to create an image of a user.
Companies are even considering other criteria, such as the page the user is visiting, to help build a better view of the type of products that might interest them.
Data is valuable to marketers, and as companies build massive information caches, they can get better at generating and delivering relevant content to consumers.
With marketing automation and machine learning technology, companies can leverage their databases to forecast consumer behaviour even months in advance.
However, data collection is complicated and nuanced, and online privacy becomes increasingly crucial as audience listening tools become more advanced.
Behavioral Marketing Segmentation
An essential facet of the behavioural marketing method is audience segmentation. Behavioural targeting can be determined differently depending on your organization’s marketing goals and ideal market.
However, there are some common ways that companies divide markets, including:
- Shopping behaviour.
- Customer loyalty.
- Sought benefits.
- stage of the customer journey
- Commitment level.
Behavioral Marketing Statistics
These statistics demonstrate the growing popularity and benefits of behavioural marketing:
According to Microsoft, organizations that leverage consumer behaviour data to drive insights outpace their competitors by 85% in sales growth.
92 % of consumers agree that it is essential that every interaction they have with a brand is excellent whenever or wherever they happen in the purchase decision of a brand or retailer.
Segment reports that 49% of customers will likely become repeat shoppers after a personalized shopping experience with a retail brand.
47% of companies personalize communication based on behaviour in real-time, according to Segmen.
Faster-growing companies generate 40% more revenue from personalization than their counterparts, according to 2021 McKinsey research.
McKinsey also reports that 71% of consumers expect personalization. This includes product recommendations and targeted promotions.