{"id":48560,"date":"2020-09-09T09:24:07","date_gmt":"2020-09-09T13:24:07","guid":{"rendered":"https:\/\/www.sogolytics.com\/blog\/?p=48560"},"modified":"2023-09-12T10:48:31","modified_gmt":"2023-09-12T14:48:31","slug":"behavioral-segmentation","status":"publish","type":"post","link":"https:\/\/www.sogolytics.com\/blog\/behavioral-segmentation\/","title":{"rendered":"Behavioral Segmentation: A Crucial Aspect of Market Segmentation"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Segmenting a market means developing the most vivid view possible of a particular customer opportunity. When \u201copportunity\u201d enters the conversation with \u201cmarketing,\u201d three must-have requirements emerge. It must:<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<ol>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Represent enough buying power to make analysis worthwhile<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Be accessible<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Have a fighting chance to be competitive<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">If any of these are missing, move on. If they\u2019re evident, continue the \u201cvivid picture\u201d process.\u00a0<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><span style=\"font-weight: 400;\">Most businesses entering the market segmentation arena move straight into demographic and geographic segmentation analysis. Those generally are the easiest to come to grips with. Psychographic segmentation and a behavioral segmentation definition are more removed and less understood. So why are they necessary?<\/span><\/p>\n<div class=\"div-spacer\"><\/div>\n<h2>What is behavioral segmentation?<\/h2>\n<p><span style=\"font-weight: 400;\">Let\u2019s put it this way:<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">If you can view an interesting object from all angles &#8211; the sides, underneath and above &#8211; the more chance you have to understand everything about it.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">More than that, if you want to make contact, it gives you a firm idea of the direction to take (i.e., sideways, ground up, or an aerial approach).<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Behavioral segmentation is just that. It gives you a creatively unique view of the market and, at the same time, provides new ways of entering it to be more competitive and thus make more money.<\/span><\/p>\n<div class=\"div-spacer\"><\/div>\n<p><a href=\"https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2020\/09\/Behavior-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-48562 size-large\" src=\"https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2020\/09\/Behavior-1-1024x681.jpg\" alt=\"Creative view through a camera lens\" width=\"1024\" height=\"681\" srcset=\"https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2020\/09\/Behavior-1.jpg 1024w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2020\/09\/Behavior-1-300x200.jpg 300w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2020\/09\/Behavior-1-768x511.jpg 768w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2020\/09\/Behavior-1-600x400.jpg 600w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2020\/09\/Behavior-1-50x33.jpg 50w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/p>\n<div class=\"div-spacer\"><\/div>\n<h2><strong>Why is behavioral segmentation important?<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">What is behavioral customer segmentation (what behavior segmentation is sometimes referred to as)? In a way, the behavioral segmentation definition explains itself. It\u2019s grouping customers identified by the way they behave in the marketplace &#8211; a kind of user segmentation if you will. It tells one what buying patterns to expect of customers as they interact with your company\u2019s brand. It takes us directly to understanding the customer experience (CX) and the CX journey to get pinpoint openings that grab the customers\u2019 attention and interest.\u00a0<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><span style=\"font-weight: 400;\">Here are some behavioral segmentation examples that have made or broken marketing programs across a spectrum of industries:<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">There are customers who always inspect products in brick-and-mortar stores before buying online. If, as an online marketer, you don\u2019t have a traditional retail presence for your brand, you\u2019re dead in the water with this behavioral segmentation category.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">B2B buyers may place the order in the end, but other departments like engineering, HR, and IT steer the decision. If you look at all the touchpoints in the CX journey, there\u2019s likely substantial inter-departmental discussion. If you are not getting the approval of these decision influencers, you\u2019re not getting the business. Behavioral segmentation slots this customer group into one best described as \u201cbuyers influenced by connected departments.\u201d\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Hispanic millennial female customers throughout the US use their mobile devices when buying close to 70% of the time. If this demographic is on your radar, ignore that behavior at your peril.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">COVID-19 threw aerobic exercise-conscious people into a quandary as gyms closed, spin-classes halted, and the hunt was on to replace these options. A massive online search for mountain bikes, racing bikes, and stationary bikes like the Peloton emerged in early 2020. Intelligent behavioral segmentation would have picked this up and signaled the opportunity for cycling distributors to cash in on the behavioral trend.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">There are customer groups that repeatedly react to friends &amp; family department store sales. Others are the first to buy when a new model tech product comes on stream (i.e., opinion leaders). Still there are others that are the last to buy, but when they do, they are all in (i.e., followers or laggards). The list goes on.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Behavioral segmentation spotlights customer actions at every stage of the customer journey to create compelling entry points for a brand. It carves out a meaningfully different way to appeal to a customer group by referencing its behavior patterns.\u00a0<\/span><\/p>\n<div class=\"div-spacer\"><\/div>\n<h2><strong>Behavior Segmentation is sometimes called the ultimate converging segmentation<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">When demographically profiled people (in the same business type or living in a geographically targeted area) act similarly to the same market stimulus, it is probable that the same psychographics drive their motivation. Therefore, relying on behavioral segmentation to bring all these different pieces together for pinpoint accuracy is a fair bet. It helps marketers decide on the right message to send through the right media, at the right time, with the product mix that registers in the right way. Laser accurate accuracy is perhaps overstating the case, but it\u2019s as close as it can get.<\/span><\/p>\n<div class=\"div-spacer\"><\/div>\n<p><a href=\"https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2020\/09\/Behavior-2.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-48563 size-large\" src=\"https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2020\/09\/Behavior-2-1024x684.jpg\" alt=\"Accurate placement\" width=\"1024\" height=\"684\" srcset=\"https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2020\/09\/Behavior-2.jpg 1024w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2020\/09\/Behavior-2-300x200.jpg 300w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2020\/09\/Behavior-2-768x513.jpg 768w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2020\/09\/Behavior-2-600x400.jpg 600w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2020\/09\/Behavior-2-50x33.jpg 50w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/p>\n<div class=\"div-spacer\"><\/div>\n<h2><strong>Behavioral segmentation leads to new prospects and opens new market opportunities<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">The two examples below are products of behavioral segmentation, describing demographically defined segments in terms of specific customer activity. The degree of insight and reward for using it better than competitors can be massive.<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><strong>Example 1<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">Suppose that Callaway Golf observes that:\u00a0<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">One in two single-handicap male golfers buying a new set of clubs add a sixty-degree wedge to the purchase.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The category, as a target, constitutes 5% of all male golfers<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">It calculates out at 2.5% of all male golfers (in the millions) will buy the extra club when they upgrade their equipment.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The motivation behind it?\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Probably a desire for greater accuracy<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">To maintain one\u2019s semi-elite status amongst peers<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">To reduce frustration around the \u201cshort-game\u201d where most scoring prowess slips away<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">It\u2019s good to know the motivations, but if not, the bottom line is it\u2019s a behavioral trend that\u2019s predominant amongst competent golfers buying golf sets. If Callaway gets the message across at the right moment that its brand is the go-to choice for the extra club, the payoff could be huge.\u00a0<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><b>Example 2<\/b><\/p>\n<p><span style=\"font-weight: 400;\">A B2B Saas company selling a project-scheduling app noted that customers inquired about an ROI calculation addendum to measure profitability at all stages. It resulted in an expanded software package with new revenue potential and a distinct competitive advantage.\u00a0\u00a0<\/span><\/p>\n<div class=\"div-spacer\"><\/div>\n<h2><strong>Behavioral segmentation and connection to three CX journey drivers<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Behavioral segmentation\u2019s connection to every touchpoint of the <\/span><a href=\"https:\/\/www.sogolytics.com\/blog\/what-is-customer-journey-mapping\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">CX journey<\/span><\/a><span style=\"font-weight: 400;\"> gives marketers an enormous field of creativity. There are conceivably hundreds of market behavior descriptions that define groups with significant buying power. The skill lies in selecting the ones that convert into meaningful marketing programs. The three listed here are reflective, but don\u2019t scratch the surface:<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><strong>1. Entry-stage behavior<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">Many product categories offer little room for differentiation. It\u2019s how you sell and promote the similar benefits that create a competitive edge. If, for example, you detect that the customer likes videos, chat-bots, or podcasts, or hates them, it can give you the advantage you need. Selling to the customer the way he or she wants to buy is a pillar of behavioral segmentation.<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>Follow these guidelines to get to know your customers:<\/p>\n<div class=\"div-minispacer\"><\/div>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Understand how online prospects enter a market<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Appreciate how they navigate the landing pages<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Highlight when and how they contact customer support<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Track their movement in and out of the site, hesitations, and speed-ups\u00a0<\/span><\/li>\n<\/ul>\n<p><strong>2. Customer satisfaction (or dissatisfaction) behavior<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">How do we know a customer is satisfied or dissatisfied? Here are some ways &#8211; we can:<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Ask. After every company connection, you can send out a single-question text or email to rate the value of the support provided.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Watch buying behavior. When new prospects hit the buy button, they turn into new (presumably satisfied) customers.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Analyze post-sale returns (i.e., after the action, dissatisfaction).\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">ROI-centric businesses should follow the line of least resistance. Cater to customer categories whose behavior indicates the least hassle, and avoid the ones difficult to please. If there\u2019s enough of the former, you don\u2019t have to please everyone. At the same time, emphasize and integrate the touchpoints that repeatedly seem to resonate with customers in your marketing activity.\u00a0<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><span style=\"font-weight: 400;\">Conversely, the ones creating bad customer vibes should be addressed, minimalized, or erased altogether. The behavioral segments should include a cross-section of high-satisfaction touchpoints, excluding or dampening the ones that divert interest in your products or services.<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><strong>3. Customer Loyalty behavior<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">Customer retention lies at the heart of a thriving business. <\/span><a href=\"https:\/\/www.sogolytics.com\/customer-experience-platform\/roi\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">ROI optimization<\/span><\/a><span style=\"font-weight: 400;\"> connects to long-term customers, whereas draining profitability aligns with the opposite &#8211; customer churn. Therefore, segmenting off customers loyal to the brand, then analyzing their patterns of behavior, paints a picture of responsiveness and knowing what\u2019s working in your business. On the other side of the coin, customers abandoning the brand may demonstrate common behavior patterns at specific touchpoints.<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>Examples of loyalty and disloyalty behavior:<\/p>\n<div class=\"div-minispacer\"><\/div>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">60% of all Floridians with hundreds of thousands of Delta travel miles respond to miles and ticket discount promotions to European destinations in the USA summer months.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A big chunk of loyal Spirit Airlines customers jumped ship in the COVID-19 crisis when the airline didn\u2019t mandate an empty middle seat on flights.<\/span><\/li>\n<\/ul>\n<h2><strong>Consult Sogolytics when you&#8217;re ready for behavioral segmentation<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Sogolytics is a renowned entity guiding businesses in all aspects of behavioral segmentation, especially when it comes to personality profiling. They will help you wade through the processes to look objectively at the segments responding to your actions and those that don\u2019t. They\u2019ll look at cause-and-effect situations throughout your markets, giving you insight into ROI-centric initiatives. They\u2019ll also earmark CX turnoffs whenever they occur on a significant scale. Whenever it comes to developing a behavioral segmentation or psychographic segmentation plan (to delve into the \u201cwhys\u201d of behavior), <a href=\"https:\/\/www.sogolytics.com\/\">Sogolytics<\/a> is the number one choice.\u00a0\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Segmenting a market means developing the most vivid view possible of a particular customer opportunity. When \u201copportunity\u201d enters the conversation with \u201cmarketing,\u201d three must-have requirements emerge. It must: Represent enough buying power to make analysis worthwhile Be accessible Have a fighting chance to be competitive If any of these are missing, move on. If they\u2019re evident, continue the \u201cvivid picture\u201d process.\u00a0 Most businesses entering the market segmentation arena move straight into demographic and geographic segmentation analysis. Those generally are the easiest to come to grips with. Psychographic segmentation and a behavioral segmentation definition are more removed and less understood. So why are they necessary? What is behavioral segmentation? Let\u2019s put it this way: If you can view an interesting object from all angles &#8211; the sides, underneath and above &#8211; the more chance you have to understand everything about it.\u00a0 More than that, if you want to make contact, it gives you a firm idea of the direction to take (i.e., sideways, ground up, or an aerial approach). Behavioral segmentation is just that. It gives you a creatively unique view of the market and, at the same time, provides new ways of entering it to be more competitive and thus make more money. Why is behavioral segmentation important? What is behavioral customer segmentation (what behavior segmentation is sometimes referred to as)? In a way, the behavioral segmentation definition explains itself. It\u2019s grouping customers identified by the way they behave in the marketplace &#8211; a kind of user segmentation if you [&hellip;]<\/p>\n","protected":false},"author":39,"featured_media":5080,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[194],"tags":[487,529,30,150],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.7.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Behavioral Segmentation: A Crucial Aspect of Market Segmentation - Sogolytics Blog<\/title>\n<meta name=\"description\" content=\"Bring together your marketing plan by wielding Behavioral Segmentation, a tool that helps you understand your customers.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.sogolytics.com\/blog\/behavioral-segmentation\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Behavioral Segmentation: A Crucial Aspect of Market Segmentation - Sogolytics Blog\" \/>\n<meta property=\"og:description\" content=\"Bring together your marketing plan by wielding Behavioral Segmentation, a tool that helps you understand your customers.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.sogolytics.com\/blog\/behavioral-segmentation\/\" \/>\n<meta property=\"og:site_name\" content=\"Sogolytics Blog\" \/>\n<meta property=\"article:published_time\" content=\"2020-09-09T13:24:07+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-09-12T14:48:31+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2018\/08\/market-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"487\" \/>\n\t<meta property=\"og:image:height\" content=\"714\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Gordon Polovin\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.sogolytics.com\/blog\/behavioral-segmentation\/\",\"url\":\"https:\/\/www.sogolytics.com\/blog\/behavioral-segmentation\/\",\"name\":\"Behavioral Segmentation: A Crucial Aspect of Market Segmentation - Sogolytics Blog\",\"isPartOf\":{\"@id\":\"https:\/\/www.sogolytics.com\/blog\/#website\"},\"datePublished\":\"2020-09-09T13:24:07+00:00\",\"dateModified\":\"2023-09-12T14:48:31+00:00\",\"author\":{\"@id\":\"https:\/\/www.sogolytics.com\/blog\/#\/schema\/person\/93290d69063997af1ba9a4bfb602a285\"},\"description\":\"Bring together your marketing plan by wielding Behavioral Segmentation, a tool that helps you understand your customers.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.sogolytics.com\/blog\/behavioral-segmentation\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.sogolytics.com\/blog\/behavioral-segmentation\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.sogolytics.com\/blog\/behavioral-segmentation\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Behavioral Segmentation: A Crucial Aspect of Market Segmentation\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.sogolytics.com\/blog\/#website\",\"url\":\"https:\/\/www.sogolytics.com\/blog\/\",\"name\":\"Sogolytics Blog\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.sogolytics.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.sogolytics.com\/blog\/#\/schema\/person\/93290d69063997af1ba9a4bfb602a285\",\"name\":\"Gordon Polovin\",\"description\":\"With an MBA from the University of the Witwatersrand in South Africa and work with clients and industries in the UK, Europe, Canada, and the US, Gordon's range of experiences make him well suited for the diverse topics and compelling conversations that Sogolytics clients value. 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