Behavioral segmentation refers to the process of segregating customer demographic into different sub-segments. Behavioral segmenting is highly effective in several industries such as food retailing because it concentrates on the customer instead of the general population. In the grocery store industry for instance, a good example is the application of behavioral segmentation to separate customers according to age, sex, or income.
Food retailing is no exception. Many studies have shown that food sales can be increased by offering an enhanced food shopping experience to customers. People shopping for healthy food will do so without worrying about paying exorbitant prices. A company can create this enhanced experience by implementing various techniques such as the use of labels, price comparison, or even an interactive shopping cart.
There are certain characteristics of healthy foods that are appealing to consumers. These include the absence of salt, fats, and sugar in foods. Other things that are attractive to consumers include natural ingredients and whole grains. Customers want to buy food that has all these qualities, but it may not be easy to achieve.
By offering a greater variety of healthy food products, a food store’s profit margins can be improved. It becomes more affordable to offer such products at a low price. This will allow food companies to offer competitive prices to their customers. Furthermore, with improved profit margins, it is possible to offer better deals to customers.
Food shoppers spend a long time browsing through different packages in a food store. As a result, it can take up a lot of time for the food items to be purchased and consumed. In the process, time is wasted which could otherwise be used in making more money. However, with behavioral segmenting, the food items being offered to customers can be arranged in different sections depending on what they prefer.
For example, if the customer prefers yogurt, section offering yogurts can be arranged next to a section selling fruits and vegetables. This way, consumers will be able to easily find what they want within their price range. They will no longer need to go through the tedious task of sifting through packages looking for what they need.
Retailers are using this technique all over the world in order to improve sales. Some other benefits of using this technique are that it allows retailers to focus on one group of customers who are spending a lot of time in a store – young people between eighteen to thirty years old.
This group of customers are a priority for food stores because they are considered “healthy” and therefore they will most likely continue to shop for more products which they believe will help them attain their health goals. This is why they are the first to see discounts on certain products. If they notice that food companies have come out with a new product, for example, they will quickly buy it as they are aware of the potential health benefits.
The second group that can benefit from offering healthy foods are pregnant women and mothers who are lactating. Since the baby they are carrying is very important, food companies understand that these shoppers will only buy food items that they believe will be helpful for their infant.
Since they are the ones who will be buying the product, they should be made aware of the healthy products that they do not need. Thus, the food company is offering more healthy foods that they believe they can easily digest.
One disadvantage of using this technique in food stores is that many customers do not know about the food products that they will be buying. When a food is labeled healthy or contains added vitamins, it is often difficult to distinguish between healthy foods and those that contain added vitamins. However, behavioral segmentation advantages make it possible for shoppers to get the right product for them.
By using this method, food retailers will be able to give customers the healthy products they need without having to worry about what they need to eat. With all the above mentioned behavioral segmentation advantages, food stores can achieve greater profits.