Top 3 Uses Of Behavioral Segmentation In eCommerce

Trying to Improve Your Customers' Interaction With Your Online Store? Find Out How Behavioral Segmentation and Behavioral Targeting Can Save You Months!

What is Behavioral Segmentation?

Simply put, any market segmentation based on customer behavior or customer buying behavior is behavioral segmentation. With behavioral segmentation, an e-business owner can quickly categorize his customers on the basis of number of times they have visited their online store, what products they have bought, what categories they prefer, if they are registered members – so on and so forth.

With behavioral targeting, marketing has taken a giant leap forward from the traditional market segmentation based solely on demographics – namely, age, sex and location etc.

“Regardless of channel type, there is a huge difference between spending money on speaking to someone who is never going to buy your product or service versus investing in speaking to someone who is likely to convert or influence other converters”.

– Pete Stein, CEO of Razorfish, New York

Advent of AI in Retail

With the onset of internet, businesses set up their own online storefront to reach out to more customers. Later on, by tapping into the latter’s buying behavior, businesses were able to reach customers directly and more effectively. But with the increase in the eCommerce landscape and the resulting overwhelming volume of data, it became humanly difficult to process such huge amounts of analytics. This is where Artificial Intelligence (AI) got into retail. AI is designed to manage large amounts of data. In fact, the more the data, the better the prediction. The effective usage of data is then translated into more predictive intelligence to support behavioral marketing efforts.

How has AI powered Behavioral Segmentation?

From Virtual shopping assistants and recommendation engines that help a customer find the product they are looking for, to the use of chatbots, AI is impacting every stage of the customer journey.

Here are some of the ways in which AI is helping segmentation:

Improves Search Capabilities

Machine Learning coupled with NLP improves the search engines’ capability to learn from new interactions, better understand what a customer is asking for, and delivers a more relevant outcome.

Improves Customer Interactions

Online retailers can now prevent their customers from receiving unwanted mails and ads by using Data Mining and Machine Learning, both of which fall under the AI umbrella – to learn how each customer wants to be reached, and how often. By measuring website clicks, they can gauge customer interest.

Fuels Personalization

E-business owners can now combine data from transactions across all channels with the help of various actions taken by the customers on their sites throughout the day. This gives them a better understanding of their needs and wants. eCommerce companies can now understand what drives an individual to purchase certain products; and then use that information to predict which products the customer might be interested in.

Furthermore, AI techniques help recognize patterns and is capable of churning out hyper-personalized recommendations for customers. Companies like Perzonalization are constantly working towards bringing the best of AI powered personalization tools for eCommerce owners.

Behavioral Targeting

Behavioral Targeting leads the way for targeted ads. By capturing data such as location, device, time on site, page views etc., behavioral targeting serves up ads to customers based on their behavior. Behavioral targeting also provides a context for personalization. And personalization amplifies through proper contextualization. And what more, with the help of personalization, at every stage of a customer journey, it offers benefits to retailers as well as their customers.


E-commerce businesses face a lot of competition today. The good news, however, is that they are also equipped with great tools and techniques to analyze customer behavior, and cater to their needs at a more personal level. The ultimate goal of behavioral segmentation is to understand your target audience and optimize your conversion by leveraging your products with contextual branding and marketing approaches.


Want to Learn More? Talk To One Of Our Personalization Experts

İlke Karaboğalı

Co-founder @perzonalization, SaaS marketing enthusiast, ex fmcg marketer, ex Nokian