Behavioral Marketing: How Does It Improve Your Digital Marketing?

February 9, 2022
Authored by:
Grace Lau

How can behavioral marketing help you? Well, it used to be that to market your business you’d have to create a large number of flyers and hand them out to everyone or rent an expensive billboard to ensure that as many eyes as possible could see it. A rather inefficient way of attracting customers.

With behavioral marketing, you can create better-targeted ads, more effective ads that are very likely to resonate with customers and prospective clients. Whereas we used to target consumers based on the broad actions they took, such as pages visited, now we can target users based on very specific actions they’ve taken.

What Is Behavioral Marketing?

Behavioral marketing is promoting and selling a product or service based on the actual behavior of the consumer. These behaviors include website activity, purchase history, social media activity, and activities from third-party applications. These behaviors offer insights into consumers’ behavior patterns and can be used to a company’s advantage.

Understanding the psychology of marketing can unlock many opportunities for your business. Check out this video on understanding buyer behavior:

Behavioral marketing allows businesses to track and measure consumers’ behavior from the moment they enter a website up to the point of purchase. This is done through the use of tools such as web analytics, heat maps, and user recordings.

The information you gather regarding consumers’ behaviors allows you to analyze the data, group consumers according to their profile, and personalize your marketing towards them.

Why Is Behavioral Marketing Important?

Behavioral marketing holds many benefits for a business, here are a few of them:

  • Allows you to better tailor your ads - Platforms such as Google and Facebook collect massive amounts of personal and behavioral data. This data enables you to better tailor your ads on these platforms to audiences who are interested in offers.
  • Helps you attract more and better leads - Finding buyers will take less effort and investment. Why? Because behavioral data can inform you about a customers’ stage in the buyer's journey, that customer’s preferences, and their interests. With these insights, you can find and attract leads who are more likely to convert.
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  • Helps you increase sales - It allows you to advertise your products and services to an audience that is actually interested in purchasing them. Your sales team can achieve better, more accurate results by using behavioral marketing in their sales strategy.
  • Helps you establish better relationships with your target market - It doesn’t have to be all about advertising and sales. It also allows you to provide your target audience with more relevant content, letting you know who your customers are and how to use that information to give them what they want when they need it.

How Does Behavioral Marketing Work?

We now know what behavioral marketing is and why we should leverage it, but how does behavioral marketing work? Well, there are three steps to behavioral marketing: data collection and analysis, audience segmentation, and then applying the data. Let’s look at each step in more detail below.

Step 1: Data Collection and Analysis

The first step of behavioral marketing is collecting audience behavioral data. This data can come from many different channels such as:

  • Social media
  • Search engines
  • Websites
  • Mobile apps
  • Email
  • Chatbots

These days, social media, large online shops, bulk email services, mobile apps, and even automatic call distribution recordings provide a wealth of behavioral data collected from their users. This data can be used by businesses to deliver more relevant content and better-targeted advertisements without businesses having to invest time and money into collecting this data themselves.

Step 2: Audience Segmentation

From the data collected and analyzed common demographics and behavior patterns will emerge. Using these common traits we divide the people into groups also known as audience segmentation. If we did not segment the audience then we would have to send the same message to the entire audience.

On some platforms, such as Facebook Ads, the audience segmentation process is semi-automated - meaning all you have to do is pick the audience you want to show your ads to. Choose your audience’s interests or behavior patterns and the algorithm will automatically segment your target audience.

There's also more than one kind of audience segmentation, which gives you more possibilities to go about the data collection. Here are the four types of market segmentation and their benefits:

On your own website, you can use Google Analytics to collect data about your site’s users. This data can include metrics such as how long users browse the internet, and which search queries they use. Google can use this data to target their display and retarget ads with amazing accuracy.

For email marketing campaigns, you can easily segment your mailing list based on how they engage with your send-outs. You can send emails to users who have never made a purchase from your business or to those who bought goods during the last month. The great thing about behavioral marketing is that you can send different messages to these different segments.

Step 3: Applying the Data

In the final step of behavioral marketing, you need to create ads, emails, and other messaging based on the information and insights about your audience that you gained in the previous two steps.

These messages can come in the form of:

  • Facebook ads
  • Google search and display ads
  • Email marketing
  • Chatbots

How to Use Behavioral Marketing

Behavioral marketing is a very powerful tool but how exactly can you use it? There are a few ways that behavioral marketing can be used with these methods being available across multiple channels.


With the retargeting or remarketing method, the pages, and products customers have viewed are taken into consideration. Behavioral marketing will then show those pages or products to the customer again even if they are not on your website.

Both Google Ads and Facebook ads offer retargeting options. Learn the difference between the two in this short guide:

On both platforms, you can create a campaign and specify to retarget an audience who has interacted with your products. You will need to plan your remarketing campaigns accordingly. Who exactly do you want to target?

One example may be people who looked at a certain product, possibly added it to their cart, but didn’t make the purchase. You may benefit by sending them a retargeted ad offering a discount. Retargeting ads on social media can really help in building a brand on social media.

You can also retarget customers through email. One common example is if a customer visits a website, adds some products to their cart, but then abandons their shopping cart. You can encourage the customer by sending them a retargeted email reminding them to complete the purchase or even offer a discount.

Personalized Targeting

Today, audiences want to see content relevant to them. Sending messages to your audience with irrelevant content will just irritate them.

However, you can make the content you send to your audience more relevant through personalization. With personalization, you can send the right content to the right audience at exactly the right time. Your sales team could use behavioral marketing and VoIP applications to call customers with personalized offers.

Content personalization can be straightforward with the right data and solutions. This short guide gives you the know-how on delivering the right content to the right visitor at the right time:

You can personalize marketing campaigns using data about users’ gender, location, income level, past purchases, and more. Creating a positive experience with your brand thanks to personalized content will go a long way to increasing your brand equity.

Suggested Products

Ever used Amazon? Noticed the “related products” or “bought together” messages you see when looking at an item? This is an example of using behavioral marketing through suggested products.

Customers Who Bought This Item Also Bought…Affinity Analysis Explained –  MeasuringU
Image Source: Measuring U

Customers are becoming frustrated when they receive advertisements and content that is based on their interests. By focusing on the individual instead of the mass segment, you can send product recommendations that convert to sales.

Machine learning and AI allows marketers to use behavioral marketing as a way to trigger automated marketing campaigns based on a customer’s past and current interactions with the business. So, a business can use the insights gained from previous campaigns to send a message to customers that have unique product combinations that also take into account the purchasing trends of other customers.

Best Practices

Image Source: Unsplash

Before you decide to leverage behavioral marketing in your next advertising campaign, you should consider these best practices for better success:

  • Explain how you use people’s data - It’s okay to use behavioral data but you should be transparent about it. Let users know that you are collecting data and analytics.
  • Ask users for data - You can ask customers to give you more information through surveys and by collecting feedback.
  • Analyze the results and test new tactics - Make use of Google Analytics and email marketing statistics to create a better picture of which behavioral data helps drive sales.
  • Don’t overdo it with segmentation - If you divide and divide and divide your target market into tiny segments then only a small number of people will meet your criteria. Provide value in the first place, then use segmentation as one of your tools to achieve success.


Imagine a world where the ads you make go out to consumers who are actually looking for what you are selling. Very efficient, effective, and cost-efficient. This world doesn’t exist just yet, but we are getting closer to it thanks to behavioral marketing.

Behavioral marketing is a very powerful tool in a business’s marketing and sales arsenal. Using the data gathered about customer engagement you can retarget, personalize, and give customized suggestions to your audience across multiple channels leading to more sales. Behavioral marketing can even be used in brand marketing to better highlight your brand as a whole.


Grace Lau is the Director of Growth Content at Dialpad, an AI-powered cloud communication platform and enterprise VoIP solution for better and easier team collaboration. She has over 10 years of experience in content writing and strategy. Currently, she is responsible for leading branded and editorial content strategies, partnering with SEO and Ops teams to build and nurture content. This is her LinkedIn.

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