Everything You Should Know About Occasion Segmentation
What Is Occasion Based Segmentation?
Occasion based segmentation involves dividing customers into subgroups based on the different occasions when they make purchases or plan to buy from you. This type of segmentation is a subset of behavioral segmentation, also known as timing-based segmentation. Here's an example to illustrate this concept:
Pete is a frequent shopper on an e-commerce website that sells gifts and greeting cards. The website collects various data points on Pete, including his purchase history, the type of products he buys, and the occasions for which he purchases the products.
Using this data, the website can create a segmentation strategy based on the occasion. For instance, they can segment Pete into the following categories:
- Birthday Shoppers: Pete has made several purchases for birthdays. The website can send Pete personalized emails and offers on birthday-related products and send reminders closer to his loved ones' birthdays.
- Holiday Shoppers: Pete has purchased during Christmas, Thanksgiving, and New Year holidays. The website can send him promotional emails and offers related to these holidays and provide personalized product recommendations based on his past purchases.
- Anniversary Shoppers: Pete has made purchases for anniversaries. The website can send him reminders and personalized recommendations for upcoming anniversaries.
Occasion based segmentation allows the website to customize its marketing strategies to match Pete's interests and preferences, thereby increasing the chances of him making repeat purchases and becoming a loyal customer.
Occasion based segmentation involves dividing the market into subgroups based on specific events or times of the year when customers need a particular product or service. These events, also known as target occasions, are essential for marketers to identify, as they provide an opportunity to promote relevant products or services to customers.
Why Choose Occasion Based Segmentation
Using occasion-based segmentation, businesses can increase their chances of success by targeting customers more likely to purchase their products or services during specific times of the year.
Research can be conducted on the category of the products/services to identify which one is selling well for a specific target occasion. It helps you determine where your brand is performing better, identifying opportunities for improvement and growth.
For instance, if a flower shop wants to increase sales during Valentine's Day, they can use occasion-based segmentation to target customers likely to purchase flowers for their loved ones. They can then create marketing campaigns tailored to this group, likely leading to increased engagement and sales.
Occasion Based Segmentation Examples
Occasion based segmentation can be divided into 3 broad categories:
These occasions fall on the exact dates for most of society. A family purchasing a turkey on Thanksgiving, couples buying chocolates on Valentine’s Day, and lamps being bought on Diwali are all purchases made during universal occasions.
For sports events as well, occasion based segmentation works well. Sports merchandise may be sold during events like the FIFA World Cup or the Super Bowl. Companies target these occasions to leverage their sales.
Let’s look into a few examples of occasion segmentation for universal occasions. Here are some campaign offers that a chocolate company can create for Valentine's Day using occasion-based segmentation:
- Buy One Get One Free - Offer customers a free box of chocolates by purchasing one box. This offer can target couples looking to buy a gift for each other on Valentine's Day.
- Personalized Chocolates - Customers can personalize their chocolates with a special message or their loved ones' names. This offer can be targeted toward customers looking for a unique and personalized gift for their loved ones.
- Special Edition Flavors - Create unique chocolate flavors for Valentine's Day, such as strawberry, raspberry, or cherry. This offer can be targeted toward customers looking for something new and exciting to try on Valentine's Day.
- Valentine's Day Gift Baskets - Create gift baskets that include a variety of chocolates, along with other Valentine's Day-themed items such as flowers, stuffed animals, or balloons. This offer can target customers looking to create a romantic and memorable Valentine's Day gift.
By creating targeted offers based on occasion-based segmentation, the chocolate company can increase its sales and customer engagement during Valentine's Day.
Regular Personal Occasions
Birthdays and anniversaries are examples of special personal occasions that occur regularly. Companies that sell cakes and gift items like jewelry, clothing, showpieces, etc., will target customers with recommendations on these days.
Travel companies often offer discounts to couples traveling on birthdays or anniversaries. Let’s look into a few examples of occasion segmentation for regular personal occasions. Here are a few campaign offers that a travel company can create for couples traveling on their anniversary using occasion-based segmentation:
- Romantic Getaway Packages - Offer couples special romantic getaway packages that include candlelight dinners, couples massages, and sunset cruises. This offer can be targeted toward couples celebrating their anniversary and looking to create special memories together.
- Personalized Travel Planning - Offer couples the option to work with a travel planner to create a customized itinerary for their anniversary trip. This offer can be targeted toward couples who want to create a unique and memorable experience tailored to their specific interests and preferences.
- Anniversary Discounts - Offer couples a discount on their travel booking for their anniversary trip. This offer can target couples looking to save money while still having a romantic and special anniversary celebration.
- Surprise Upgrades - Surprise couples with room upgrades or other special surprises upon arrival at their destination. This offer can be targeted toward couples who are looking for a little extra romance and excitement during their anniversary trip.
Rare Personal Occasions
Weddings and landmark anniversaries are usually celebrated worldwide. The 25th, 50th, and 60th birthdays and anniversaries are typically celebrated worldwide. These companies target consumers on rare occasions.
Travel companies offer honeymoon packages, anniversary holidays, and more. Hotels step up their game and leave no stone unturned to provide a truly memorable experience for their guests on such occasions.
Let’s look into a few examples of occasion segmentation for rare personal occasions. Here are a few campaign offers that a travel company can create for honeymooners using occasion-based segmentation:
- Honeymoon Packages - Offer special honeymoon packages that include unique experiences, such as a private beach dinner, couples massages, or guided tours to romantic spots. This offer can target couples looking to create unforgettable memories on their honeymoon.
- Personalized Honeymoon Planning - Offer couples the option to work with a honeymoon planner to create a customized itinerary for their trip. This offer can target couples who want to ensure their honeymoon is tailored to their interests and preferences.
- Honeymoon Registry - Allow couples to create a registry where family and friends can contribute to their trip expenses or honeymoon experiences. This offer can target couples who want a dream honeymoon but may need more money to make it happen independently.
- Surprise Room Upgrades and Special Gifts - Surprise honeymooners with room upgrades or unique gifts, such as champagne or flowers, upon arrival at their destination. This offer can target couples looking for a little extra romance and luxury during their once-in-a-lifetime honeymoon.
Benefits of Using Occasion Based Segmentation
Using occasion segmentation leads to the following benefits:
Surged Customer Satisfaction
Suggesting a customer the right product at the right time increases the chances of selling that product. Give the customer what they want when they want it. Occasion based segmentation helps a seller focus on the right consumer at the right occasion when they are ready to purchase.
Customer Retention Gets Higher
Customers who are satisfied with their purchases will likely return to you for more. Occasion based segmentation helps boost customer loyalty by providing a better purchase experience to them. It encourages customers to buy more from only you (because you understand their needs) rather than looking for better deals elsewhere.
Boost in Sales
If your customers are satisfied with you and are happy to stay with you, you may conclude that it will boost sales for your brand. Shopping during special occasions, especially for another person, means that customers will choose products they would not usually buy for themselves. This means that they are okay with mind spending more. Occasion based segmentation plays a crucial role here for better conversion. Think of last-moment purchases as well. Customers return to the stores they are familiar with; they only go to new ones they know about.
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Read About: behavioral segmentation
Frequently Asked Questions
Why is occasion based segmentation important?
Occasion based segmentation allows customers to be targeted according to their needs for various target occasions like birthdays, anniversaries, and festivals. It leads to higher sales via boosted loyalty. Customers buy more from brands they know about.
What do you mean by occasion based segmentation?
It is the marketing practice of dividing customers into groups based on their purchasing habits. It helps provide a clear picture of who is buying what at what time in their lives.