Find out how to properly utilize psychographic segmentation.
Distributing mass campaigns to largely untargeted prospects is a thing of the past. If you want to stay on top of the trends and captivate your customers before your competitors are able to, it’s time to start segmenting.One vital method of doing so is psychographic segmentation. Gain a deep, insightful analysis of your target customer base by implementing this important form of breaking down your audience.
What is it?
Psychographic segmentation is the process of dividing your market up based on a variety of personality traits. Hobbies, values, personalities, habits, and lifestyles all come into account when utilizing this form of customer segmentation.
Considering these aspects of your customer will help you gain valuable insight to uncover who they are and what motivates them to buy. By tapping into the emotional components of the buyer’s journey you will be able to more accurately reach and captivate your target audience.
Psychographics and demographics go hand in hand. While demographics focus on physical characteristics, such as race, gender, age, and income, psychographic segmentation takes this just one step further. Within this form of segmentation, you are taking those demographics and diving deeper into how the facts relate to who your customers are intrinsically.
For example, demographic segmentation would target simply women ages 35 to 45 living with a moderate income in a suburban area. With psychographic segmentation, we understand a more segmented portion of these women also value health, family-friendly locations, and quality over economic value. Psychographic segmentation reveals the unique differences associated with each of your customers.
Set the analytical numbers aside – it’s time to get personal. The only way to gain this valuable psychographic segmentation information is by getting to know your target audience.
Don’t be shy. Interview your customers to find out what they like to do in their spare time, what they value most in life, and what motivates them to change. There are a plethora of possible questions to use in order to gain more insight into who your buyers are as human beings.
If you don’t feel appropriately connected to personally ask your buyers or if you are looking to gain a larger population, send out a survey. Sending out a survey is a great way to gather the information you need in order to properly execute psychographic segmentation.
Implementing the Strategy
The information you gain from asking psychographic questions can dramatically boost your campaign success rate. These tactics will reveal what motivates customers to decide on a brand, product, or what influences their shopping habits. Psychographic segmentation views each single customer as an individual – breaking down each element that goes into how they think and why they buy what they buy.
Several companies are utilizing these data metrics to optimize customer satisfaction. For example:
- Foursquare uses their apps to introduce real-time location tracking and creates customized offers according to how many times their customers have frequented certain stores.
- Walmart utilizes social media technology to tap into their customer’s psychographics. The company is able to predict customer’s preferences based on their social media posts, shares, and interests.
By implementing these psychographic segmentation practices, businesses can hone in on their very specific target customer and completely tailor to their needs. Starbucks, for example, has done an impeccable job at finding their specific company niche. They focus on high-income, well-educated adults that value time efficiency and quality. Doing so has allowed them to flourish into a prestigious, world-renowned company.
Don’t forget B2B.
The advantages of psychographic segmentation do not need to stop at the B2C level. Although it’s clear why a business would value the deeper emotionally driven insights gained through psychographic analysis on a B2C level, the same tactics can be transferable to B2B marketing for similar success. There is still a unique identity and important values projected from an entire business.
Consider Life is Good, for example. We would expect far different goals, personalities, and standards to come from this company rather than one such as Goldman Sachs. Keeping in mind the personas of each company you are working with will dramatically benefit your B2B capabilities. Businesses are, in fact, collectively made up of individuals with visions of company values instilled within them.
Keep your customers in mind.
Now that you are an expert on the importance of breaking down your customer personas using psychographic segmentation, it’s time to start targeting. Implement this strategic and data-driven practice to fully optimize your targeting abilities and reach your highest potential as a business. By taking the time to really listen and understand who your audience is and what they value in life, you will know what your customers want before even they do.