Personalization Glossary

A/B testing? Recommendation models? The personalization engine space uses several acronyms that may seem daunting, so we're here to help. You can find definitions to the most common e-commerce customer experience optimization terms here!

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Behavioral Segmentation

Behavioral segmentation involves identifying and grouping customers based on their online behavior. It takes into account factors such as context and circumstance, as well as objectives in a current session, as opposed to traditional segmentation practices that tend to group and target visitors by constant and flat attributes such as demographics, the technology used, digital context/source (referrer, marketing channel, current page, etc.) as well as some dynamic lifecycle events (repeat visits, purchases, lifetime value, average order value).

Behavioral segmentation is a type of segmentation in marketing strategies in which people are divided into multiple groups who showcase specific yet common patterns in their behavior. These users are prone to share the same lifecycle stage, previously bought same/similar products, or have identical responses to your marketing messages.

Most companies use varied marketing channels such as messages, emails, social media messages, timely push notifications, etc to deliver a better personalised and contextual experience to their customer at any given moment. 

Behavioural segmentation mainly provides the following benefits when done rightly: 

  • Better targeting:  This method helps brands/companies provide their users with personalised experiences by leveraging noted behavioral uniqueness to whom marketing messages can be optimised and targeted for more conversion. 
  • Helps offer appropriate/personalised user experience: Sending out bulk emails to every user is an age-old method.  Opposed to that, every cohort of users need to be analysed deeply in order to identify and meet their needs and wants by implementing a personalised approach based on behavioral groups they are part of. 
  • Helps identify target users:  Marketers need to know who their actual target users are in order to level their marketing messages and strategies to the users they are aiming to convert. They identify their target audience by analysing their level of engagement, post to which they optimise their campaigns or product listing to best suit what their users are looking for. 
  • Cost-effective:  This segmentation method helps marketers identify and run appropriate campaigns that in turn helps them save money. It helps marketers invest less time and only required resources to either warm up leads in the pipeline or to engage and communicate with an uninterested bunch of users. 
  • Makes measuring success a cakewalk:  Marketers can look at the metrics of every segment and optimise strategies and content to higher the future results. 
  • Build brand loyalty:  This method will show you ways you can keep your customers engaged and interested in your offerings by understanding their activities/journey.  Users who are provided personal attention aka personalised user experience are more inclined to stick to a specific brand and also grow to become brand enthusiasts and advocates. 

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