In marketing, what does the term 'behavioral segmentation' refer to?

Behavioral segmentation refers specifically to the practice of dividing a market into segments based on the behaviors exhibited by consumers. This approach focuses on customer purchasing behaviors, including patterns such as how often a buyer purchases products, their usage rate of products, their brand loyalty, and the factors influencing their purchasing decisions. By analyzing these behaviors, companies can tailor their marketing strategies, offerings, and communications to better meet the needs and preferences of different segments.

For example, a brand might identify a segment that frequently purchases during promotions, allowing them to design targeted marketing campaigns that focus on discounts or special offers. Understanding these behaviors helps marketers create more effective strategies that resonate with specific consumer groups, ultimately driving sales and customer satisfaction.