When was the last time you felt genuinely appreciated as a customer? Was it an email suggesting products you actually needed? Or a timely loyalty reward for something you love?
These little moments of connection don’t just happen by accident—they’re the result of thoughtful customer segmentation and data-driven behavioral marketing.
Customer loyalty is a big deal. Regular customers are not just repeat buyers; they’re brand ambassadors. They recommend your product to friends, post about it on social media, and stick with you even when competitors fight for their attention.
Studies have shown, time and time again, that loyal customers are easier to upsell, have a higher lifetime value (LTV), and require less effort to retain than acquiring new ones. But how do you build that loyalty?
The short answer? Understand your customers better than they understand themselves. And the long answer—that’s where segmentation and behavioral data come into play.
Recently, our founder, Adam Ortman, sat down for a conversation on the eCommerce Traffic and Conversion Podcast with Scott Brandley and DJ Sprague. In their conversation, segmentation and behavioral data came up as a key focus. Let’s unpack some key considerations.
What is Behavioral Marketing?
Behavioral marketing is exactly what it sounds like—a strategy based on what your customers do. It’s all about tracking their actions, like what they buy, how they interact with emails, or even the time of day they make purchases. Then, using that information, you can craft campaigns that speak directly to their habits and needs.
Imagine someone repeatedly visits your online store but never checks out. Behavioral marketing tools can flag this habit, and you can send a personalized email with a discount or limited-time offer to encourage a purchase.
Think of behavioral marketing as the perfect synergy of data, psychology, and intelligent strategy. It’s not just about selling—it’s about creating a customer experience so seamless and personal that it feels like you’re reading their minds.
The Role of Segmentation in Building Customer Loyalty
Ever tried speaking to a hundred people in a crowd all at once? Chances are at least half of them would stop paying attention. Why? Because no single message appeals to everyone. This is where segmentation steps in.
Segmentation breaks your audience into smaller groups based on shared characteristics or behaviors. These can include demographics, purchase history, LTV, or even how often they interact with your brand.
For example:
- High-Value Customers (the 20% generating 80% of revenue): Offer loyalty rewards, early access to new products, or VIP experiences.
- At-Risk Customers (those who haven’t purchased in a while): Send them win-back campaigns with personalized incentives.
- First-Time Buyers (new to your ecosystem): Provide educational content or a welcome discount to encourage repeat purchases.
Customer personas are also valuable tools to guide segmentation. Personas combine demographic data with psychographics, helping marketers understand not only who customers are but also what they care about.
The creation of personas allows you to break down who your customers are, from their priorities to their media consumption. Essentially, it helps your message get to the right person at the right time, and in a way that actually resonates.
Why Behavioral Data Is Key to Success
Segmentation is incredibly important, but without the right data to back it up, you’re just guessing. That’s where behavioral data comes in.
After all, data alone doesn’t tell you much; it’s the story behind the data that drives action.
This isn’t just about what customers say—they’ll tell you they love discounts and look for quality—but what their actions reveal. Behavioral data is all about the patterns.
Just a few things behavioral data can tell you include:
- Purchase frequency and habits
- Engagement patterns with websites, emails, and ads
- Preferences revealed through browsing behavior or clicks
- Customer pain points and friction spots in the buying process
For example, say your brand launches a new product. You notice customers who purchased a similar product six months ago keep revisiting the page but aren’t adding it to their cart.
That behavioral insight could tell you that the price isn’t right, or maybe they’re waiting for reviews. Acting on those insights in real-time could be the nudge they need to convert.
Steps to Implement Segmentation and Behavioral Marketing
Customer loyalty isn't something you stumble upon—it’s something you earn by understanding your audience and delivering value on their terms. Here’s how to implement segmentation and behavioral marketing as part of your campaigns:
Step 1: Gather First-Party Data
One size fits all, according to Ortman, just feels generic— and it’s a waste, like flushing money down the drain.
First-party data is the foundation for building precise customer segments and delivering personalized marketing messages. With third-party cookies on the decline, first-party data is your strongest asset.
Wondering where to begin? Start by offering incentives for customer information. Set up sign-up forms that offer a tangible benefit in exchange for basic details—think discounts, early access to new products, or even free shipping on a first order.
The key here is to make sure your customer feels they’re getting something worthwhile in return for their information.
Ethically collecting first-party data not only sets the stage for personalized marketing but also builds trust with your audience.
Step 2: Develop Deeper Customer Profiles
Customer profiles are the secret sauce to segmentation—and by that, we don’t mean limiting your view of them to broad demographics like age or location. Go further. Get into the weeds of their psychographics, like their motivations, fears, and personal goals.
Use tools like Google Analytics, HubSpot, or AI-driven platforms to gather insights that go beyond surface-level data. The better you know your audience’s mindset, the sharper your marketing will become.
Pro tip? Don’t just assume you know what your customers want—ask them. Surveys and polls still work wonders for direct insights, and the added personal touch builds loyalty as well.
“Get inside their head,” says Ortman. Focus on their fears, desires, and goals over their basic demographic details like age or marital status. By deeply understanding your audience, you equip yourself to send messaging that resonates and converts.
Step 3: Use Lookalike Audiences and Identify High-Value Customers
Not all customers are created equal for your business, but some stand out—those who buy more often, spend more, and stay engaged longer. High-value customers are golden, so the next step is identifying (and cloning) them using lookalike audience techniques.
Platforms like Facebook Ads and Google Ads allow you to create these lookalike segments by analyzing your existing top customers, finding people who share similar traits, and targeting them with your campaigns.
At the same time, focus on products or services driving high Lifetime Value (LTV) and revenue. By combining behavioral data with lookalike audiences, you avoid the pitfall of wasting ad spend on audiences less likely to convert.
Step 4: Craft Campaigns That Truly Speak to Your Audience
When it comes to creating campaigns, again, you need to forget about one-size-fits-all. Personalized messaging is key. The same ad shouldn’t be sent to a new customer, a 6-month subscriber, and a VIP who’s bought every product in your store.
Create segments for each stage of the customer lifecycle—newbies, loyalists, churn risks—and deliver messaging that matches their behavior. For instance:
- New Customers – Welcome emails introducing your brand and offering a small incentive for their next purchase.
- Existing Customers – Recommendations for products they’ll love based on past behavior.
- Loyal Customers – Give them early access to a new product or an exclusive discount as a thank you for their loyalty.
Why Timing Matters
Beyond personalized content, when you deliver your campaigns matters, too. Behavioral data can help identify those critical moments during your customer’s buying journey—like when they might need a refill or replacement.
Sending a replenishment email for a coffee subscription two weeks before the customer runs out? Smart. Offering everyone a discount for no reason when they’re ready to pay full price? A miss. Offering too many discounts too soon (or to everyone) diminishes your margin, since the customer hasn’t even asked for one yet.
Instead, set up triggers and automation to deliver campaigns during those high-impact moments. Done correctly, you’ll maximize both sales and customer satisfaction.
FOMO and Social Commerce
Fear of Missing Out (FOMO) isn’t just a buzzword—it’s a real psychological driver, and it’s shaping modern social commerce. Platforms like TikTok and Instagram thrive on this concept, with limited-time offers, exclusive drops, and countdowns driving sales like never before.
Use your behavioral data and segmentation to identify which channels your customers frequent most. Then, leverage these platforms to promote your campaigns with a strong sense of urgency.
- Run flash sales.
- Share testimonials and user-generated content.
- Post “low stock” alerts to nudge on-the-fence buyers.
The Role of Technology in Behavioral Marketing
Gone are the days when one-size-fits-all campaigns did the trick. Today, marketing thrives on customization and precision, which is where technology takes center stage.
AI and machine learning are your secret weapons when it comes to unearthing audience insights. These cutting-edge technologies sift through massive data sets to identify patterns, preferences, and behaviors you never would’ve seen otherwise.
Faster than you can say “target demographic,” AI equips you with information to optimize campaigns, personalize experiences, and boost engagement.
“I don’t necessarily see AI as a threat,” Ortman said. “I see it as a new tool. When it comes to e-commerce specifically, it only makes us more effective.” AI helps us compute enormous data quickly, allowing for more effective marketing campaigns.
But AI isn’t the only tool you should lean on. From Google Ads to Meta and TikTok, today’s platforms are built to maximize segmentation and personalization. You can target users based on their behaviors, interests, and even previous interactions with your brand. These tools not only help you reach the right audience but also ensure your ads feel relevant, not pushy.
And here’s where things get interesting—combining online tactics with offline marketing. Imagine blending digital signals (like geolocation data) with outdoor campaigns or even in-store experiences.
Traditional media isn’t dead. While we all have data on our minds, we shouldn’t lose sight of what’s always worked well, either.
How to Avoid Common Pitfalls
Even the best strategies can falter without proper execution. Here’s how to steer clear of common marketing missteps.
Say Goodbye to "Set It and Forget It"
Automated, one-off campaigns might save time, but they’re a recipe for mediocrity. Static marketing strategies fail to account for evolving customer behaviors. Instead, keep campaigns dynamic by incorporating regular updates and refinements.
Test, Test, and Test Again
If you’re not A/B testing, you’re leaving opportunities for success on the table. Experiment with different headlines, visuals, and CTAs to see what sticks. Data-driven testing ensures you’re consistently improving your impact.
Use your tests to figure out how you’ll allocate your resources. 70% of your budget should go toward tried-and-true methods, 20% toward tweaking those methods, and 10% toward brand-new creative ideas.
Align with Customer Values
This tip can’t be overstated. Customers love brands that reflect their values, whether it’s sustainability, inclusivity, or innovation. Make sure your product and messaging align with what your audience truly cares about.
Kinetic319's Approach to Behavioral Marketing
If you’re ready to introduce segmentation and behavioral marketing to your strategy, ask yourself this—are you targeting behaviors and preferences, or relying solely on demographics?
At Kinetic319, we don’t just love marketing—we live it. But at the heart of everything we do is a simple principle: relationships matter.
Kinetic319 has helped countless brands use segmentation and behavioral data to achieve exceptional results. Whether it’s creating campaigns that drive clicks or fostering loyalty with long-time customers, our relationship-focused marketing generates tangible outcomes.
If you’re serious about building customer loyalty, there’s no better time to prioritize segmentation and behavioral data. These strategies are more than trends—they’re your ticket to staying ahead in an increasingly competitive market.
Feeling inspired and want to learn more? Listen to the full conversation on how to maximize your revenue with AI-enhanced social commerce on the eCommerce Traffic and Conversion Podcast.