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Back to list of entriesWork on behavioural segmentation
Head of Research

Jadwiga Kijak

Head of Research

Patrycja Rudnicka

5.7.2022
-
5
reading min.

How behavioural segmentation can change your business

It is becoming increasingly easy to analyse online customer behaviour using dedicated tools and qualitative methods. Identifying common behavioural patterns is the basis of behavioural segmentation, and thanks to psychographic profiling we also learn about customer motivations and their sources.

What will you learn from this article?

  1. Who is your customer?
  2. Where do you get your customer knowledge from?
  3. Behavioural segmentation versus needs assessment
  4. Behavioural segmentation - benefits

Who is your customer?

The better you know your current and potential customers, the easier it is to tailor your product, service or offer to their needs, expectations and even limitations.

Key questions you should know the answer to:

  • Who buys your products?
  • Why does he buy them?
  • Why does he buy them from you?
  • How to attract new customers and build customer loyalty?
  • What do your customers like? What do they dislike?
  • What motivates them? What annoys them?
  • What problems and needs do they have? How are they currently meeting them?
  • Where do your customers look for product information?
  • How do they search for them? What phrases do they use?
  • How, when, where and for how much do they buy?
  • How to reach them?
  • What habits do they have of using your product or service?

Making business decisions based on only residual information or intuition rather than data-backed knowledge can result in colossal failure, which even major giants like Kodak and Blockbuster have suffered. If you're looking to communicate effectively with your customers and scale your business effectively, the first thing you need to do is look for answers to the above questions.

Why?

  1. You will find out who your customer is and what they need
    - what motivates them to use your services,
    - how quickly they adapt new technologies,
    - if and which channels you are able to reach them through.
  2. You will be able to anticipate their needs and frustrations
    Knowledge of your clients' motivations, pains and behaviours will allow you to predict what new problems, challenges and frustrations will arise in their lives. This will enable you to offer exactly what they need or will need in the near future.
  3. You will invest in projects and features based on real needs, not on questionable assumptions, guesses or incomplete data.
  4. You will learn what and how to say to your customers
    Effective communication of the benefits of your product or service is only possible if you know the needs, motivations, pains, values and even personality traits of the people you want to reach.

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Where do you get your customer knowledge from?

Segmentation is the division of customers into groups according to established criteria. The most common basis for segmentation is geographical (customer location), demographic (age, gender, education, economic status, family and life situation), psychographic (lifestyle, values, attitudes, personality) and behavioural (intentions, product knowledge, purchase behaviour, loyalty, commitment, etc.). It can be said that each successive category of segmentation provides us with more in-depth knowledge of customers and, as a result, increases the accuracy of the selection of optimal messages and allows us to gradually increase the value offered to customers.

Behavioural segment ation allows us to differentiate users according tobehavioural criteria in order to identify their specific needs, reveal opportunities to optimise their experience with a product or service and understand the sources of their behaviour.

Behavioural segmentation - schema
A workflow for preparing a behavioural segmentation.

For example, in the e-commerce industry, customer behaviour can be easily identified using analytical tools as well as qualitative methods. Common patterns of behaviour distinguished by different criteria, for example place, object or time, form the basis for segmentation.

Interesting results are also obtained by using psychographic profiling, which makes it possible to find the client's traits and characteristics that determine the desired behaviour. Most often we analyse personality traits, attitudes and value preferences. Thanks to the in-depth insight into the determinants of motivation and behaviour, we can better understand why the customer acts the way they do, learn about and satisfy their needs , and anticipate further actions, linking them appropriately to the product strategy.

On the basis of behavioural segmentation and psychographics, we created recommendations and functional guidelines for a newly emerging product - the payment gateway Paynow. The project, which we implemented in collaboration with mBank, was based on knowledge about the needs, habits, limitations and all the pain of online shop owners. The effectiveness of this approach can be proved by the fact that during usability tests the product was very well evaluated by the target group - there were questions about when the solution will be available on the market.

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Need help segmenting your customers? Let us know, we have the expertise.

Questions? Get in touch with us!

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Needs research

Behavioural segmentation is the result of needs research. During research sessions, we meet with representatives of a selected group and talk about the ways in which they cope with selected problems and whether and how they use specific products. At the same time, we deepen this conversation with topics related to the behaviour, motivations, needs and opinions of the respondents.

Behavioural segmentation - persona
An example of a persona from a behavioural segmentation prepared in the process of creating mBank's payment gateway, Paynow.

Conducting a needs survey allows:

  • identify personality traits, attitudes, values, interests and lifestyles of clients,
  • understand and learn about their needs and motivations,
  • gain an in-depth insight into their behaviour,
  • identify key behavioural patterns that differentiate customers,
  • get to know their preferences regarding the services you offer.

Segmentation obtained through research is an invaluable resource for the company and its various departments. This includes:

  • basis for market strategy,
  • the basis for new product development,
  • a means of eliminating risk,
  • a tool to tailor the product to the needs of the market,
  • help to optimise the product range,
  • guidance for the direction of product development,
  • support in defining strategic objectives.

Behavioural segmentation is a tool which enables the creation of products perfectly suited to the target group. As a result of the research, we gain a deep insight into the motivations and behaviours of users, we find the answer to the question why they act the way they do, and we are also able to create directional and functional recommendations for a product under construction or enabling optimisation of an existing solution.

With behavioural segmentation, the deployment of new employees or external agencies involved in project work will be much faster and more effective. Knowledge of customer segments and their behavioural characteristics should be the basis of all activities and product decisions.

Participation in research proves valuable also after the project is over. When I conduct trainings with mBank employees, I can refer to specific examples, draw attention to real customer problems that we can solve thanks to the payment integrator developed in cooperation with Mobee Dick.

Kamil Łucki,
business development expert in the Corporate Client Department, mBank

Test without limits

Thanks to the appropriate selection of methods and tools, research sessions can also be conducted remotely. This means unlimited access to selected groups of recipients, regardless of their location. In Mobee Dick we have developed effective procedures and good practices that allow us to minimise the challenges connected with this form of conducting research sessions and remote cooperation.

Research conducted in this model also offers far greater opportunities for participation by a larger number of observers, through the use of online streaming, and recorded and narrated sessions allow for easy return to key insights.

Benefits

The use of research increases the chances of market success. Thanks to them:

  • minimise risk
    You make better business decisions based on facts rather than guesswork and avoid creating a product that is not suited to the market.
  • Youreduce unnecessary costs
    You verify the functions of a product or service at the product strategy or design stage, thus avoiding the costs associated with their implementation and reducing the number of changes at later stages of the project.
  • Better forecasting
    You know the real needs of your customers and the problems that cause them to abandon your product or use your service.

By choosing research, you increase your chances of creating a product or service ideally suited to your target group. You effectively plan product development and make the right decisions regarding its optimisation.

If you want to know more about the benefits of the research we carry out please contact us!

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