Ted Schadler began his session on behavioral targeting by saying that segmentation is shorthand for understanding customers. He said that segmentation allows marketers to reduce the diversity of consumers to groups that have similar characteristics.
What is the right segmentation? The one that predicts the behavior that you care about. there are three kinds of segmentation: Demographic, Attitudes, and Behavior. Ted highlighted the strengths and weaknesses of each kind and concluded that behavior is the most predictive and therefore the one of most interest to marketing. Simply put, past behavior typically provides insight into future behavior.
The Internet is a rich source of predictive behavioral activity. How to get started? As always, begin with what you want to know and do.
1. Identify the behaviors that best mirror your product or service.
2. Begin by looking at who has the enabling technology
3. Target potential buyers by previous behaviors.
4. Narrow focus to likely adopters based upon the intensity of their previous behavior.
This was a fascinating session and I will post more later today. Best chart:
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