At its simplest, behavioral marketing is any marketing effort based on customer behavior. People who visit your website, do it for several reasons. Some are there to buy your products, while some others might simply be browsing around with no particular buying intent. Similarly, some of them would be visiting to your website from USA and while another might be logging in from Europe.
“Don’t find customers for your Products; find products for your customers” – Seth Godin
eCommerce stores have two options in these different situations. Either they display the same landing page with the exact same content for all these different segments of people, or they show different content and call-to-actions for different types of visitors. If you were a customer, would you want to see the same landing page every time you log in? Or would you rather want the eCommerce store to understand what you want and display a landing page accordingly?
Let’s look at this example below:
Paramore, is an American rock bands merchandise store which uses geo-location data of its visitors to direct them to their respective pages in the following way:
This is how it looks when someone from US opens their site:
And like this if you do access it from the United Kingdom:
And, if you open it from Estonia, it looks like this:
Why is Behavioral Marketing so important for eCommerce?
Trust is very important in eCommerce. Unlike a brick and mortar store where an immediate trust is built when you come face to face with your customer, in an online scenario that trust is not built until you understand the customer and deliver accordingly. Personalized marketing becomes very important there. And the only way one can do personalized marketing is by behavioral segmentation.
Behavioral Targeting factors can be several – like geography, demographics, online history and activities etc. and these can be used in different marketing channels like automated email marketing campaigns, targeted ads, retargeting, to show special discounts and offers and the like.
Targeted advertisements are more likely to appeal to customers because these take into account their individual preferences and offer them what they might need or want. As a result, you have a much more receptive and engaged audience.
One classic example of behavioral segmentation was Dell. The company after realizing the importance of behavioral marketing, started targeting users according to the benefits sought by them, products viewed, items added to cart and final buyers. The consumers who added products to cart and did not purchase were re-targeted via customized ads while on other websites. This boosted cross-selling.
So, make a plan, if you don’t already have one and try out some campaign ideas to see how your online visitors respond. Try out our product recommendation and personalized email marketing tools and you will be surprised with the results.