Glossary

Behavioral segmentation

Grouping customers by what they do, such as how they choose, buy or use a product or service.

Why it matters

Customers who look similar on paper may buy or use the same offer differently. Looking at those actions can help you decide what to investigate and where a different approach might be useful.

A simple example

Illustrative example, not client research

An online shop could explore two groups based on their purchase history.

Repeat purchasers

Return to buy the same product regularly.

A possible response: test whether a simpler reorder process would help.

Occasional purchasers

Buy infrequently or for a particular occasion.

A possible response: ask what prompted the purchase before changing the offer.

These are starting hypotheses, not findings. Research would need to test whether the patterns are consistent and whether each group needs a different response. People may move between groups over time.

Behavior is not motivation

A purchase record shows what happened, not why. Someone might buy once because of a promotion, a temporary need or a disappointing experience.

Use customer conversations to explore those explanations. Do not treat a purchase pattern as proof of a shared need or assume it predicts future behavior.

Before acting on a pattern

Which action are you measuring, and over what period?
Is the pattern repeated, or could it reflect a one-off event?
What evidence would show that a different response is useful to this group?

Market segmentation: Dividing a market into groups with shared needs or characteristics, so you can decide whom to serve and how.
Customer research: Gathering and analyzing information about customers to understand their needs, behavior and experiences.
Customer interview: A conversation designed to understand a customer’s experiences, needs and decisions.