Businesses can use a variety of marketing strategies to entice clients to make purchases in the business realm. One effective technique for acquiring data to segment and target customers is behavioral marketing.
Moreover, behavioral marketing helps shield customers from irrelevant or unwelcome advertisements. In order to determine the unique demands of their clients, firms use this sort of marketing to concentrate on individual patterns of engagement.
You’ll discover what behavioral marketing is, its advantages, and instances of how organizations now employ the tactic in this piece.
Behavioral marketing: What is it?
The process through which businesses target customers based on their behavior, interests, intents, geolocation and other information is known as behavioral marketing.
Web analytics, cookies, search history, and other methods are used to collect this information.
Organizations can deliver appropriate content and offer rather than blanket communications by carefully segmenting audiences based on particular behaviors or user profiles.
Types of Behavioral Marketing
There are numerous tactics that a business can use when it comes to behavioral marketing.
While some strategies work, many can be used to build a strong behavioral marketing strategy. Let’s examine a couple of the most common categories of strategies.
1. Product Suggestions
Everyone has experienced this when buying online: As you proceed to the checkout, a window displaying products that are frequently purchased along with the ones in your cart appears. A great method to involve potential consumers in cross-selling or up-selling opportunities is this suggested selling strategy.
Also, this strategy is really powerful. According to McKinsey & Company, cross-selling and category-penetration strategies like product recommendations can boost sales by 20% and profitability by 30%.
Product recommendations fall under behavioral marketing since putting something in a cart triggers specific selling recommendations.
Remarketing and retargeting methods may be novel ways to increase sales for businesses that use Google and Facebook for marketing purposes.
When a potential customer leaves the website, remarketing methods focus on presenting them with the pages or products they previously visited. This second chance for customers to see your products once more may increase website traffic or result in product purchases.
Say you go to the Asian Art Museum’s website to make travel arrangements for your upcoming vacation to San Francisco.
A few minutes later, you encounter an ad for the museum when you’re scrolling on Facebook. Your Facebook advertisement is based on past behavior (visiting a website). Remarketing is being used there.
3. Email Marketing
Currently, email marketing is used by many companies as a part of their marketing strategy, but few make use of the effectiveness of behavioral segmentation. Abandoned cart emails are a great illustration of a behavioral segmentation email marketing approach.
Your team can send emails and information relating to those products or categories to customers who have things in their basket that have been there for a while.
In the end, this gives the consumer a more customized experience.
4. Demographic Targeting
Demographic targeting is one of the behavioral marketing strategies that are most frequently applied in the commercial world. In the end, corporations use parameters like a user’s age, geography, education level, and even gender to develop an impression of them.
Even now, businesses are beginning to consider more factors, such as the websites you frequent, to help them develop a more accurate picture of the kinds of things you might be interested in.
5. Marketing Automation
Data is valuable to marketers, and when businesses create enormous information caches, they may improve the creation and delivery of pertinent material to customers.
With marketing automation and machine learning technology, businesses can leverage their databases to forecast consumer behavior even months in advance.
The topic of data collecting is multifaceted and varied, and as audience listening tools progress, online privacy is becoming more and more crucial.
Behavioral Marketing Segmentation
Thinly segmenting consumers is an essential component of the behavioral marketing approach. Depending on the marketing objectives and target market of your company, behavioral segmentation may be decided in a different way.
Nonetheless, there are a few typical methods used by businesses to divide up markets, such as:
- Customer loyalty
- Purchase behavior
- Benefits sought
- Engagement level
- Customer journey stage
Behavioral Marketing Examples
1. Liquor Loot
Segmented email marketing that works isn’t always serious. Just take a look at this abandoned cart email from Liquor Loot. The email’s tone is lighthearted as it enumerates the advantages of purchasing a whisky bottle.
In fact, by offering lighthearted justifications for why a potential consumer might think about purchasing a Whiskey Loot Box, they are more likely to engage with visitors who browsed the store but did not make a purchase.
Dyson, a company well-known for its incredible selection of vacuums and sweepers, has excelled at using behavioral marketing. A sample of one of their abandoned cart emails is shown in the image above.
Dyson can recover lost sales before they are permanently lost by giving customers a recap of the things they were considering purchasing and making it simple for them to go back to the checkout screen.
Nike has long been regarded as a pioneer in the field of marketing. Most people are aware of the company’s innovative use of athlete endorsements in advertising efforts to motivate millions of children and adults to move around.
But, Nike has also developed a fantastic digital marketing plan.
The retargeting advertisement seen above appears straightforward but has the potential to be a formidable tool for bringing potential shoe buyers back to the Nike website.
Nowadays, it’s typical for customers to return to a business’ website several times before making a decision. Remarketing advertising is crucial because this trend is particularly relevant to companies with a focus on travel and transportation.
Many individuals use Trivago’s website to check vacation spots, but most people don’t often book on their first visit.
Trivago uses remarketing advertisements on Facebook and Google to provide new, updated offers for hotels in the locations where a customer was previously browsing in order to keep the business top of mind.
Amazon has a monopoly on clever provocative advertising. You’ll find adverts and content on its website that suggest products based on things you’ve looked at, bought in the past, or have in your shopping cart.
In addition, you may view what other customers bought to complement the item in your cart.
By adding this level of customization, Amazon has persuaded customers to shop with them for the majority of their purchases instead of just one item.
Facts on Behavioral Marketing
Do you need further evidence of the effectiveness of behavioral marketing? These figures illustrate the rising acceptance and advantages of behavioral marketing.
- According to Microsoft, businesses that use consumer behavior data to produce insights outperform their rivals in terms of sales growth by 85%.
- When making the decision to buy from a brand or retailer, 92% of consumers concur that it is crucial that every connection they have with the brand be exceptional.
- According to Segment’s 2022 State of Personalization research, 49% of customers think they are likely to make another purchase from a retail company after having a personalized shopping experience.
- In accordance with real-time behavior, 47% of businesses personalize messages, according to Segment.
- According to McKinsey & Company research from 2021, businesses with higher growth derive 40% more of their revenue from personalization than their competitors.
- 71% of consumers, according to McKinsey & Company, demand customization. That includes product suggestions and focused advertising.
Implementing Behavioral Marketing
Your clients anticipate a tailored experience. One approach to getting there is through behavioral marketing. As you go out on your adventure, keep transparency in mind.
Consumers should be informed about the purposes for which your brand is collecting and using their data. You’ll be well on your way to developing a successful behavioral marketing plan if you keep these factors in mind.