Classic Coke is still the most popular soft drink, but classic segmentation in marketing is losing its fizz. Demographics and gender have long been the go to segments for marketers. We’ve been taught to think in terms of Male or Female, 18-34, 35-54, and so on. These numbers are still used, but for many they’ve fallen further down the list in importance. According to MoneySuperMarket, the British price comparison website, Proctor & Gamble has shifted its strategy to hundreds of more precise “smart audiences.” Now they segment by “new mothers,” or “first-time owners of a washing machine.” So, what exactly is the new go to when it comes to segmentation?
The bottom line is behavior. According to 91% of marketers, behavior is now the most effective method of segmentation. It’s not that behavior wasn’t previously included, but it was hard to collect and quantify. Behavior is the when, where, how and why we do things. We create patterns with our purchases and that data can be invaluable.
A particular occasion or specific timing can create behavioral segments. Marketers are looking more closely at purchasing patterns that apply to a majority of a target, aiming at those recurring personal occasions; birthdays, anniversaries, etc. Rare occasions, like weddings and vacations are, obviously, more difficult to predict.
Researchers also look at day, week, and month based behavior. Our agency has always recommended the early part of the work week to promote products and services that are business and money related. By Thursday and Friday, consumers’ minds are focused more on the weekend than their wallets.
There are behavioral preferences for reading emails, browsing social media and researching products. People are more likely to order pizza over the weekend so many restaurants email pizza specials on Friday.
Age is now considered to be, the 7th most effective method of segmentation. Lower on the list is gender, social status, household size, occupation and education. Behavior is at the top along with location, personal interests, and income.
Digital tools help make targeting more accurate. Like it or not, eventually we will create a segment of one; a completely personalized profile using behavior and personal interest to paint a flawless profile. Marketers could accurately predict consumer’s choices and become even more adept at influencing them.