Behavioral segmentation in terms of communication marketing, customer value, and consumer loyalty

Behavioral segmentation in terms of communication marketing, customer value, and consumer loyalty


Behavioral segmentation is the art of comprehending the mindset of customers in a scientific manner. This means that the application of analytics is very important while segmenting customers based on their behavior. As per a report by Statista, almost 50% of the companies use customer segmentation analysis to understand the behavior of their customers. This does not mean that customer segmentation analysis is an ineffective tool for customer profiling. However, this means that there is a lot of reluctance in the companies to use customer analysis tools to their full effect. In this article, we analyze behavioral segmentation in detail for understanding the various facets of customer segmentation.

The core of behavioral segmentation

In the age of marketing 3.0, behavior segmentation is all set to change the face of customer segmentation analysis. Customer segmentation analysis gives a bird’s eye view of customer satisfaction. Customer satisfaction can also be ascertained with the help of loyalty, repurchase ability, and service satisfaction.

There are other parameters that can be used to ascertain customer satisfaction and analyze the behavior of customers. These parameters include assessment of service delivery methods, logistics channels, and grievance redressal mechanisms.

Communication marketing and behavioral segmentation

At the heart of every business lies a treasure of loyal customers. These customers determine the success of a business by adhering to a trusted gallery of products in the long run. Companies on the other hand leave no stone unturned to earn the trust of their customers. They make use of behavioral segmentation and divide their customer base in the following ways. The first division is based on the interest shown towards a particular product and the knowledge about that product. A piece of good knowledge about the product and growing interest in it is indicative of the fact that the product is literally difficult to substitute. The second division is based on the attitude of the customer and his responsive nature. The third division can also be made based on the historical relationships of the customers with that of the company. We can also make some divisions on other factors like demographic, geographic, and psychographic.

Customer value

Customer value considers not only the effort and money but also the trust that a business earns by effectively handling its clients. In addition to this, the quality goods and services that customers receive drives them into longer relationships with the company. This proves to be a money-spinner for the companies as they can perform sequential market segmentation with these customers. It needs to be noted that customer value is not a standalone entity in itself. It encompasses under its umbrella various aspects like benefits for stakeholders involved in a transaction. Ownership rights also come under the ambit of customer value. The highest value is associated with customers which have a record transactional history with a company. On the other hand, a company associates a low value with those customers that have shown low interest in the products of the company and have been relatively unresponsive.

The question of consumer loyalty

While purchasing goods and services through online or offline mode, the decisions and choices of customers are very subjective in nature. The customers may or may not have alternate choices in mind while buying a specific product. This is where customers can be targeted through that specific product and consumer loyalty can be earned. Based on research studies for internal and external factors of marketing, we can predict some broad dimensions of consumer loyalty. We strive to give a passing reference to these broad dimensions here. The first dimensions of consumer loyalty can be related to the ideal products and services delivered to the customers. The second dimension is the assessment of factors that affect the purchase by the customer. Next in line is called the encouragement purchase by the consumer. The last dimension of customer loyalty that we like to mention here is a brand endorsement. There are some other factors as well which have an impact on loyalty, and these include dealership qualities, promotional outcomes, and payment methods in operation.

To conclude, loyalty has its own types like cognitive loyalty, affective loyalty, satisfaction loyalty, and utility loyalty.

Concluding remarks

In this article, we highlighted the range of factors that affect behavioral segmentation in general. We also laid a specific focus on broad dimensions of consumer loyalty. That said, the scope of behavioral segmentation is increasing in the era of marketing 3.0 and we may expect it to increase further in the coming times.

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Also Read: The power of behavioral segmentation in comprehending the mindset of customers

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