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How do the attributes of occasion and loyalty affect behavioral segmentation?
On Sep 23, 2024
Behavioral segmentation divides customers into groups based on how they use the product or service. Some common behavioral measures include occasion and loyalty. Loyalty segmentation makes sense because loyal customers make repeat purchases, create word-of-mouth referrals, and are usually a firm's most profitable segment. A local pizza restaurant could reinforce loyalty by a punch card with the tenth pizza free. It could also have an annual private pizza party for regulars. Simply remembering regular customers' names and preferences reinforces loyalty. Behavioral segmentation based on when a product or service is purchased or consumed is called occasion segmentation. Men's Wearhouse uses this type of segmentation to develop its merchandise selection and its promotions.