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Everything You Should Know About Occasion Segmentation

Published on:
September 12, 2022

What Is Occasion Segmentation?

Customers make purchases on different occasions and at different times. Dividing them into subgroups based on these various occasions when they make purchases or plan to buy from you is known as customer segmentation. It is one of the subsets of behavioral segmentation and is often known as timing-based segmentation. 

For marketers, this data is essential so they may take advantage of such occasions to market products/services that are perfect for the customers. Chocolate shops on Valentine’s Day may target those who celebrate anniversaries, and those who have a birthday coming up may be offered discounts during their birthday month.

Why Choose Occasion Segmentation

This is the best way to determine which products or services you should market to your target audience at a particular time. 

Research can be conducted on the category of the products/services to identify which one is selling well.

It helps you determine where your brand is performing better, identifying opportunities for improvement and growth. 

These insights may be used for improving or developing products, market strategies, and brand strategies. Occasion segmentation shows you the need or motivation that is causing customers to interact with your brand and make a purchase. 

Occasion Segmentation Examples

Occasion segmentation can be divided into 3 broad categories:

Universal Occasions

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 examples of purchases made during universal occasions.

For sports events as well, occasion segmentation works. Sports merchandise may be sold during events like the FIFA World Cup or the Super Bowl. 

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.

Regular personal occasions are important for companies looking to increase their sales.

Rare Personal Occasions

Such occasions mostly include weddings and landmark anniversaries, and a few birthdays. The 25th, 50th, and 60th birthdays and anniversaries are usually celebrated worldwide. And these celebrations involve planners, decorators, and caterers who manage the event. Such companies target consumers on rare personal 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. 

Benefits of Using Occasion 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 segmentation helps a seller focus on the right consumer when they are ready to purchase.

Knowing the customer better leads to a smooth customer experience and increases sales and profits for your business.

Customer Retention Gets Higher

When customers are satisfied with their purchases, they will likely come back to you for more. Occasion 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 well conclude that it will lead to a boost in 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 will not mind spending more. Think of last-moment purchases as well. Customers return to the stores they are familiar with; they do not go to new ones they know nothing about.

Segmentation with ShopAgain

ShopAgain offers AI-powered customer segmentation, helping you boost your sales by up to 25%. With just a click of a button, all your customer data is segmented, allowing you to start with retention marketing immediately!

Start your 14-day free trial now.  

Frequently Asked Questions

Why is occasion segmentation important?

Occasion segmentation allows customers to be targeted according to their needs for various 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 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.