This document provides an overview of behavioral segmentation in marketing analytics. It defines behavioral segmentation as dividing customers into groups based on their online and offline actions. Examples of behavioral data used include time spent on a website, bounce rate, purchase history, and items viewed. The document then discusses how behavioral segmentation has evolved over time and become a key focus since 2000. It explores the benefits of behavioral segmentation for personalizing marketing and staying competitive. Examples are provided of how Coca-Cola and Netflix successfully implement behavioral segmentation. Key references on the topic are also listed.

1. DISCOVER . LEARN . EMPOWER
Marketing Analytics
Institute- University School
Of Business
Department - MBA
Master of Business Administration
MARKETING ANALYTICS
(21BAT-757)

2. Nature and Business
Plan
CUSTOMER
LIFETIME VALUE
Customer Lifetime value
2
CO
Number
Title Level
CO1 To define management and marketing
research problem.
Understa
nd
Course Outcome

3. what is behavioural segmentation?
• Well, as the name states,
behavioral segmentation
entails dividing and grouping
consumers based on their
behaviour. Behaviour counts
for both online and offline
actions, but in this blog we
will mostly focus on digital
behaviour, so let’s take a
look.

4. what is behavioural segmentation?
• Well, as the name states,
behavioral segmentation
entails dividing and grouping
consumers based on their
behaviour. Behaviour counts
for both online and offline
actions, but in this blog we
will mostly focus on digital
behaviour, so let’s take a
look.

5. • Behavioural segmentation, in the digital world, means segmenting
users based on their online actions, i.e. behaviour on a website or
app. This normally includes things like the amount of time they
spend on your website, or ‘dwell time’, bounce rate, whether they’re
new or returning users, how frequently they interact with your brand,
which items are looked at or added to their basket or playlist, and
this list goes on. Behavioural segmentation does what it says on the
tin, and it's an essential tool for marketers in all fields.
• Did you know that organisations that use customer behaviour data to
generate behavioural insights outperform peers by 85% in sales
growth and more than 25% in gross margin? You can’t ignore those
statistics!

6. A (very) brief history of segmentation
• Segmentation in marketing has been around for decades.
Market segmentation became a part of marketing practice
around the 1950s, in the form of demographics, and has
continued to grow in use, popularity, and relevance ever since.
The 60s and 70s mostly focused on census data,
the 80s favoured segmentation based on financial data, and the
1990s embraced psychographic data to the fullest. But it wasn’t
until 2000 that marketers’ focus really became dominated by
behavioural segmentation.

7. • Using the power of AI and machine learning to predict what
consumers are looking for, and where they’re at in the customer
journey is the only way to stay competitive in today’s in-the-
moment marketing paradigm. The most competitive companies
today deliver a personalized experience to each customer every
step of the way.

8. What Is The Goal Of Behavioral Marketing?

9. • Behavioral segmentation does not exist in a bubble.
Demographic, geographic, and psychographic segmentation
often correlate to behavioral data. This means that behavioral
data is often used to confirm conclusions about other types of
segmentation.

10. What Are The Benefits Of Behavioral
Segmentation

11. Why Is Behavioral Segmentation Important
For Marketers?
• Dividing the market into smaller segments, each with a common
variable, allows a business to better optimize the use of time
and resources. When all consumers experience the same
marketing message, it only works on a small percentage. When
brands better understand a particular market and divide it
appropriately, they’re able to implement personalization to meet
the specific needs and desires of consumers.

12. Types Of Behavioural Segmentation

13. Behavioral Segmentation Use Cases
• Coca-Cola Behavioral Segmentation Marketing

14. Netflix Behavioral Segmentation Marketing
• The world’s largest streaming service
is perhaps the most proficient brand
when it comes to behavioral
segmentation. Personalization begins
as soon as a user creates an account
and streams their first show. Once a
user engages, Netflix’s behavioral
segmentation efforts kick in.
• Netflix uses an algorithm that allows
them to consistently and accurately
A/B test and experiment with viewer
preferences. The algorithm dictates
the homepage layout, recommended
content, and the visuals for each
recommendation. Netflix actually
personalizes the image you see
based on the actors, actresses, or
genres that it thinks you like.

15. REFERENCES
• Text Books:-
• 1. Grigsby, Mike., Marketing Analytics, Kogan Page, 1st Edition, 2015
• 2. Winston, Wayne, Marketing Analytics, Wiley, 1st Edition.
• 3. Venkatesan, Rajkumar; Farris Paul; Wilcox Ronald, Cutting Edge
Marketing Analytics, FT Press, 1st Edition, 2015.
• 4. Grigsby, Mike, Advanced Customer Analytics, Kogan Page, 1st Edition,
2016.
• Reference Books:-
• 1. Halligan, Bryan., Shah, Dharmesh., Inbound Marketing, John Wiley, 1st
Edition. 2016.
• 2. Sauro, Jeff., Customer Analytics for Dummies, John Wiley 1st Edition,
2017.

16. • THANK YOU
THANK YOU
For queries
Email: simmi.e12923@cumail.in