The consumer market is extremely crowded. And to address this, your organization needs to have a deep understanding of your ideal or target customer. You should know their gender, their geographic location, their marital status; the dry facts--to understand HOW to target and marketing them. But do you have a complete profile?
What are Psychographics?
Where demographics explain "who" your buyer is, psychographics explain "why" they buy. Psychographic information might include your buyer's habits, hobbies, spending habits and values.
Using both sets of data (demographics and psychographics), you can build and create a more complete buyer persona.
Let's break down some actionable steps that you can take to develop the best marketing strategy possible.
Step 1: Collect the Data
You should be able to collect said data from multiple sources: existing customer base, website analytics and point of sale behavior.
Existing Customer Base
You can easily interview your existing buyers with a simple, online survey. To encourage them to complete your survey in a timely manner, it's often essential to ply them with gift cards or other offers to tempt them into completing your questionnaire. (Sad, but true.)
When organizing your survey, be honest about why your organization is conducting the survey--because you want to better understand what they care about and why. Honesty, in combination with a small incentive, should yield a greater number of completed surveys. And provide you with some valuable data to mine!
If you're just starting out and don't have a large sample of existing clients, ask a friend who is similar to your ideal client. When you ask the right questions, you can find out what he or she does for fun, whether they're a bargain hunter or what motivates them.
Using tools like Google Analytics, try and understand what has moved visitors to buy, click or contact you. Are there specific discounts or promotions that generated more traffic than others? Think about what parts of your website were visited, at what time of day, and for what purpose.
If you're an e-commerce site, it's extremely important that your POS share data on actual customer buying behavior. For example, does one product always sell better when paired with a complimentary product? Does your customer base prefer luxury, branded products?
This can be extremely effective, as people's true motivations are reveled by the actions they take.
Step 2: Segmentation (with representation!)
You've gathered all the relevant data, now it's time to segment each group. Psychographic segmentation helps identify deeper motivations for purchasing decisions and then clusters together similar customers for marketing purposes.
In a lifestyle segmentation, your marketing team will group together customers according to their way of living, as reflected by their interests, opinions and activities. For example, if you discover that your customer base believes in buying for value, and not for the brand name--you'll want to reconsider presenting products as high-end or premium.
In personality groupings, your customer base is segmented by their values and whether these values are reflected in your brand. The goal is to make the brand a form of self-expression and building loyalty. For example, if your base believes in American-made products or social responsibility, you might choose to manufacture locally or partner with a charitable entity.
Your segmentation exercise should also determine which mediums your target audience uses most, or is most comfortable with.
Using these patterns, you can try and predict behaviors of a subset of your customer base. These data points can also be woven into the marketing strategy and messaging to appeal to their lifestyle and personality to encourage purchases and drive sales.
Step 3: Take Action
You've collected data and mined it for all the good nuggets--now let's do this!
You'll likely have multiple personas that are interested in your product or service, so you'll need to develop different marketing tactics for each segment. Let's pretend you're a a pizza franchise with both families and students as loyal customers. When target mom or dad, you'll want to promote your take-out option for a convenient dinner on the radio when they're driving home from work. When targeting students, you'll highlight a delivery deal on social media for their next hangout with friends.
In our next example, let's pretend you're a holistic nutrition coach. From the data, you determine that two of your most active groups are women, aged 19-25 and 30-40. The younger set is career-oriented, tech savvy and believe in ethically sourced prodcuts. The older set are mothers who live in the 'burbs and care more about their families. Both want to understand how your nutrition counseling has worked, without making a huge commitment--so make sure you share testimonials and comments frequently.
The younger group spends her free time on Pinterest, so use that love to pin and share time-saving nutrition tips and active things to do with her friends. You can also share offers that give a certain percentage of sales towards a good cause. Print ads on the other hand, would be more appealing to the older, less tech-savvy generation and offer to give one bottle free when two or more are bought.
You might have been using psychographics in your marketing mix without even knowing it! But after taking the three steps above, you'll have more qualified leads than you thought possible!
Please share any comments below!