Basic segmentation exercises like demographic segmentation have their usefulness in understanding large groups while psychographic segmentation helps in linking groups of people based on their mind-set and motivations. 

But as we move deeper into building relevance and realising the potential of mass precision targeting, value exchange and enabling desired action segmenting based on common behaviours becomes a step towards building  higher relevance and actionable marketing plans. Behavioral segmentation will help marketers ensure that their digital plans target the right consumers, engage with the right content that aids conversion – behavior change at scale. Behavioral segmentation promises ‘Mass Precision’.
 
To achieve the mass precision promise of behavioral segmentation we need to do the following:

1. Move from Attention to Action : Desired behavior change (actions) are the end output that digital investments will be measured against. Actions that lead to conversion or that are probable proxies for conversion in the future. Buying an airline ticket might be an immediate conversion action but searching for holiday locations, visiting comparison sites for travel bookings, subscribing to an alert for travel promotions etc indicate the propensity for future behavior change and are good proxy actions.
2. Create Action based Segmentation : Using the behavior change/ action proxies as a filter derive segments that are similar in action but differentiated in the volume, value, context of the action. Within the defined set of consumers who have performed the action/ proxy actions how do they break out into clusters that are different from each other ? Segment clusters will naturally break out on volume/ value parameters but other likely clusters based on destination/ time of year/ type of travel/ adjacent bookings (hotel + airline + type of tour + car rental) will reveal segments that are opportunities for further investment. 
3. Chart the Consumer Journeys : The answer to ‘who does what action and why ?’ is what we are trying to ascertain. The order and cascading prioritization of actions will vary across segments. Internal data (current consumers, visitors to website, subscriptions), 3rd party data (search, social) needs to be blended with a qualitative understanding of the consumer to chart the different segment journeys. Its less important to be precise than to have answers to the key tipping points and barriers in the consumer journey with an in-depth insight into the ‘why’ behind the key actions. Behavior change is the objective and Consumer Journeys are rough guidelines that help interrogate the data and refine the investment choices. In most cases, it will inform organisations about changes that need to be made to improve user experience and remove friction in conversions.
4. Small Data Analysis : Having isolated segments its time to use small data focused on certain key actions (Discovery, Intent, Conversion, Abandonment) to hone in on specific solutions for behavior change by segment. Prioritization based on segment size, actionability and urgency will be an output of this analysis.
5. Pilot-Optimise: Time to action the investment choices as pilots, observe if the hypotheses in the analysis is verified in changing behavior within the segments.

 
Behavioral segmentation is a dynamic exercise as consumer preferences change, actions change in response to context. In order to keep ahead of these changes the next step in behavioral segmentation becomes a serious investment in machine learning/ predictive analytics. Using big data modeling to discover new opportunity - new segments, new actions. 

With multiplicity of choices for consumers  - platforms x applications x devices x newsfeed refresh x e-mail alerts x ad messages, it seems that consumer attention is a scarce resource. But attention is the end product of a ‘time-value’ correlation (I will spend more time and pay attention for more value) and not a trade-off (I will pay more/ less attention to brands).
 
Value is the inflexible determinant of consumer attention, not time. Consumers will reward you with their attention if there is the likelihood of a value exchange (attention for entertainment, interest for information, visit for experience).  One strong candidate for a value exchange is ‘purpose’ (purpose for participation). When customers see an alignment in their values with a brands actions, they will begin to disproportionately invest their time participating in the brand via attention, purchase, advocacy.
 
A brand acting on its purpose is not altruism. The argument for brands to build or re-discover purpose is not emotional, its economics.
 
A. Profit : When Always ‘Like a Girl’ decided to speak against gender stereotyping its talking about a subject that’s extremely relevant to its core consumers – teen girls/ young women. It lit the spotlight on the issue of ‘confidence’ in young girls, making the conversation mainstream while allowing its consumers to participate and shape the discussion. But, as importantly, by using the connection of puberty to the loss in confidence amongst young girls it puts its brand promise of ‘protection during your period’ in focus. 76 million views, 12 billion impressions, +50% increase in purchase intent and +1.4% share point increase later Always proves that brands that combine purpose with product build profit.
 
B. Relevance : It helps a brand quickly align itself with like minded people telegraphically. “I believe in what you believe” is more powerful than “I understand you” and definitely more compelling that “I have something to sell you”.  AirBnB “Belong Anywhere” builds brand purpose and thereby relevance. Respect for its community has been the bedrock for AirBnBs actions and its paying rich rewards in the form of free marketing. More than 77% of AirBnBs content on Instagram is UGC and it has contributed directly to an uplift of 17% in its followers. AirBnB continues to live true to its purpose at every opportunity. Its “Belong Anywhere” idea has been activated in many ways – earlier this year during the Trump Innauguration, Super Bowl 2017  (#weaccept) and most recently in Australia with a message promoting marriage equality (Until We All Belong).
 
C. Reach
In low involvement/ high media cost categories like FMCGs attaching meaning to a brand is a strategically sound method to make your media work harder-longer for you. Laundry brands like Ariel “Share the Load” have embraced the route of brand purpose and made it a part of their mainstream communications. Sales lift attributed to the campaign was 5% with 1.5 million pledging to ‘share the load’ with their wives in India.
 
D. Captive High Value Audiences : For its Model 3 launch Tesla operated on a $0 marketing budget and clocked $14 Billion in pre-orders in 1 week ! People wanted to participate in the brand, wanted a slice of the future for themselves so much that they paid Tesla a year in advance to buy their car.
 
The argument for purpose led marketing is growing stronger. When done thoughtfully and consistently it plays a strategic role in helping brands capture the hearts and wallets of its targeted consumers.