Do you want to learn how behavioral segmentation can impact your conversion rate optimization (CRO) strategy? If so, we have you covered!
The reality is there are more companies out there than ever before. If you want your business to thrive, you need to find ways to stand out from everyone else on the market.
I’ve found that one of the best ways to boost CRO is through behavioral segmentation. This approach allows businesses to understand how users interact with their websites, segmenting them into groups based on specific behaviors.
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By analyzing these behaviors, businesses can personalize the user experience and target specific actions that lead to higher conversion rates.
Today, I’ll show you how behavioral segmentation can be a very powerful tool for CRO, the types of data you should consider, and practical, actionable strategies for boosting conversions.
Let’s dive in!
Source: Adobe Stock
First, let’s answer the question you might be asking yourself right now – “What the heck is behavioral segmentation?”
Put plainly, behavioral segmentation is when you group your visitors based on how they act or behave on your site. It usually doesn’t involve demographics like age, gender, or location.
This form of segmentation focuses on how users interact with your site or application.
You’ll factor in what products they look at, the content they read, what type of marketing materials motivate them to take action, and many other factors.
Here are a few more to consider:
By focusing on user behavior, you can deliver a much more personalized experience, which, in my opinion, is the backbone of a good conversion rate optimization strategy.
Now, let’s explore how behavioral segmentation can help you take your business to the next level. These are all some of the benefits we’ve experienced, and I’m confident you’ll see similar results if you’re patient and persistent.
It makes perfect sense that behavioral segmentation will have a direct impact on sales and other types of conversions. Businesses that target their customers based on their behavior have a much easier time crafting and delivering personalized content that resonates with each person.
For example, showing a returning visitor product recommendations based on what they bought last time drastically improves the odds that they’ll take action.
By anticipating and meeting the needs of your different customer segments, it’s possible to guide customers through your sales funnel regardless of where they are in the buyer journey.
There’s no question that personalization creates a better user experience.
Think of it this way: people are more likely to buy something or otherwise engage with your site if what they see is relevant to their goals, needs, or pain points.
Since they feel understood, they’re more connected to your brand and likely to have a positive association with your brand.
If you want more proof, consider this: Research from Forbes shows that 91% of people say they’re more likely to shop with businesses that offer relevant product offers and content.
Another amazing CRO benefit you can expect from behavioral segmentation is an overall better return on investment (ROI).
Since the campaigns you’re creating will be more in line with your customer’s expectations, you don’t have to work quite as hard to get them to convert.
In fact, we found that when businesses use personalization, they cut customer acquisition costs by 50%! Shocking, right?
Beyond actually acquiring new customers, you’re not spending as much to reach existing customers because you already know what they like and can show them different offers, blog posts, and other types of content that resonate with their needs.
When you use behavioral data to create unique experiences for your customers, there’s a pretty good chance you’ll build their loyalty to your brand.
People are more likely to feel a sense of loyalty to a company when they understand their needs and get things just right.
Before you head to the office, is there a place you stop for coffee every morning? Do they know exactly what you get and make it perfectly every time?
If so, then you know exactly what I’m talking about. This same sense of commitment ripples through to digital retailers and brick-and-mortar alike. When people feel like you know them, they’re going to stick with your brand for years to come.
Now that we’ve covered the benefits of behavioral segmentation let’s dive into six actionable strategies you can implement to improve your conversion rates.
Personalization is one of the most effective ways to engage users based on their behavior.
New visitors often need more context to understand what you're selling and how it will help them, while returning visitors may be familiar with your brand and ready to place an order.
With this in mind, tailor your website content accordingly.
For instance, returning visitors could be shown personalized product recommendations based on their past browsing history, while new visitors might see a welcome message or introductory offer.
You can also target people based on the specific products or categories they've checked out in the past.
For example, if a user has spent considerable time on pages related to a particular product category, you can display targeted pop-ups or banners that promote that category, increasing the likelihood of conversion.
Source: PushEngage
Email marketing becomes even more powerful when combined with behavioral segmentation. There are a ton of really creative ways to optimize your campaigns based on how people engage with your brand.
I suggest starting by sending subscribers targeted emails based on previous purchases.
For example, a SaaS company might run email campaigns that share tips with users on frequently used features or remind them of their subscription renewals.
This tactic not only encourages repeat purchases but also builds brand loyalty. Current email subscribers who abandon their carts are also prime candidates for this type of campaign.
Source: reallygoodemails
By sending personalized reminder emails, businesses can nudge these users to complete their purchases.
Offering incentives like free shipping or an exclusive discount is another excellent way to encourage subscribers to become repeat customers.
Another practical way to improve your conversion rate optimization strategy is to refine your paid advertisements.
In most cases, paid ads are shown to your target audience and designed to get them to check out your website.
With behavioral segmentation, you can take this strategy a step further by creating ad variants based on what you know about each subset of your customers.
Source: POWR
By doing this, you have a better chance of reaching more like-minded customers with your ads. Ultimately, this will help you get more paid ad clicks, engagement, and, potentially, sales.
One of my favorite ways to use behavioral segmentation is to personalize and adjust content in real time.
By making each experience dynamic, you dramatically improve the odds that people will stick around on your site. For example, if someone is looking at blog posts with specific tags, you could automatically show other blog posts and even products that fit into that category.
Here’s an example of a checklist that pops up on a blog about creating a perfect lead magnet:
Source: Beacon
Real-time also creates a sense of urgency since the offer pops up after they’ve already spent time on your site. Their thought process is, “If I leave, this offer might not be here again.”
You can also take it a step further and personalize your calls to action. This includes using the name or location of each visitor.
Retargeting campaigns are another excellent way to re-engage your audience and skyrocket conversions.
In case you’re not familiar with the strategy, retargeting is when you reach out to someone who has already visited your site. In most cases, they added an item to their cart but decided to leave without taking action.
When you consider that the average cart abandonment rate is over 70% across all industries, it’s clear that this is undoubtedly one of the key behaviors you’ll want to address.
My advice here is to personalize retargeting ads based on what the person was checking out on your site. You could send an email if they’re subscribed to your email list or show advertisements on social media and other websites.
Source: reallygoodemails
It’s very important to analyze and optimize your strategy over time. You want to identify any conversion killers so you can resolve roadblocks and stay on track.
With a carefully crafted plan, you can monitor which segments and strategies are helping to drive sales and which are better left behind.
For this, I suggest making a list of your different personalization strategies and using conversion tracking to rank factors like clicks and engagement across your segments.
It’s also a good idea to start A/B testing. This strategy involves making two versions of the same ad – an A and a B. The A is the standard look, while B is changed slightly.
The goal is to gradually optimize and improve your campaigns so you’re able to connect with your audience and boost sales.
Behavioral segmentation is a bit different from traditional demographic-based segmentation. Instead of grouping people based on characteristics like age, sex, or location, it looks at how people actually interact with your website in terms of patterns—browsing, purchases, and engagement with your content.
This approach allows for more precise targeting based on actual user actions rather than assumed preferences.
Behavioral segmentation can have a positive impact on email subscriptions, engagement, and sales. It’s much easier to connect with your target audience when you know who they are and what they like.
Website personalization through behavioral segmentation is all about creating unique experiences for everybody. When new visitors arrive, they might see introductory content that helps them understand your offerings.
Returning visitors, on the other hand, might receive personalized product recommendations based on their previous browsing. You can also adjust your messaging and calls-to-action to match each visitor's previous interactions, making their experience feel more relevant and personal.
Cart abandonment is a major challenge across industries, with rates exceeding 70%. Behavioral segmentation can help you connect with these people through social media and even other websites.
Measuring success is an ongoing process that involves several different strategies.
Companies should implement comprehensive conversion tracking to understand how different segments respond to their strategies.
Regular A/B testing helps optimize campaigns over time while monitoring engagement metrics shows how well your personalization efforts resonate with users.
When you understand and act on user behavior, it's possible to create personalized experiences that skyrocket engagement, boost conversions, and foster customer loyalty.
It's a strategy I suggest everyone uses to connect with their audience, regardless of their industry.
Follow the strategies we've outlined today, and you'll be well on your way to optimizing your CRO through the power of behavioral segmentation!
Syed Balkhi is the founder of WPBeginner, the largest free WordPress resource site. With over 10 years of experience, he’s the leading WordPress expert in the industry. You can learn more about Syed and his portfolio of companies by following him on his social media networks.