Psychographics vs Demographics
Segmentation is an incredibly important marketing exercise -- by tailoring content for specific groups, marketers are able to convert prospects into customers more cost-effectively.
However, individuals who fall into the same demographic group don't necessarily fall into the same psychographic group -- prospects might have different habits, interests, preferences, and values that make them unique in how marketers should target them.
There are a few main, distinctive differences between psychographics and demographics that could positively influence your team's marketing performance.
- Education level
- Personality characteristics
- Social class
- Principles & beliefs
- Activities & Interests
Oftentimes, consumers are guided by their attitudes and subjective perceptions when making purchase decisions, and psychographics covers such aspects of the buying process. Demographic segmentation is a great place to start, and can divide your market into broad strokes, but psychographics gives marketers greater leverage in influencing conversions. For example, demographic information might tell you something about a person's age, but psychographic information will tell you that the person is just starting a family and is in the market for baby products.
Psychographic segmentation is similar to behavioral segmentation in that groups are created based on more personal or individual criteria. Consumer psychology is primarily interested in lifestyle, habits, behavior, and interests. Each of our unique psychological profiles -- our temperament, personality, quirks, and other idiosyncrasies -- greatly influences our behavior as consumers.
For instance, if a marketer wants to segment her market based off lifestyle as a psychographic factor, then she needs to look at where individuals are in their life cycles -- is it better to target individuals who are still in school, or those who are established in their careers?
A consumer's habits or interests can tell a marketer about the things these consumers spend a lot of time thinking about and participating in. If your target customer loves yoga and you're trying to sell her on your nutritional counseling program, you can incorporate images or offers that involve yoga. Alternatively, you might advertise your program at yoga studios.
When organizations construct a unique description of the attitudes, habits, and interests of an individual or group, it's called a psychographic profile. It's similar to a target persona, in that it is a collection of consumer values and behaviors that would be most receptive to an organization's offering. Because consumers often make decisions based off psychographic dimensions like personal preferences or values, this profiling can be very effective.
Personality influences much of our thought and subsequent behavior, so understanding the psyche of your audience can greatly improve outreach methods, advertising style, and an overall emotionally compelling brand.
So now that we understand what psychographics are, how do we go about acquiring them? We outline two major methods below: interviewing your current clients and investigating you website analytics.
1. Interviewing Existing Clients
Right now, take five seconds and think of your best current client. Next time you talk, ask her a little more about herself. You can ask what she did over the weekend, if she’s seen any good movies lately (no? you’re more of a tv or online entertainment fan?), found any great holiday deals, made any New Year’s resolutions.
Depending on your relationship with the person, you can tell her exactly why you’re asking and be more direct. If you’re not in a business where you have that kind of relationship with customers, do you have any friends who are similar to your ideal client? You could ask him or her the same questions.
When you ask the right questions, you can find out what she does for fun, whether she’s a bargain-hunter, what motivates her and what her personal goals are.
Want a larger sampling? Send out a customer survey and be honest – tell them you want to better understand what they care about. Most people are more than happy to share.
2. Investigating Website Analytics
Prefer a more behind-the-scenes kind of investigation? Look at your existing site content and previous special offers. What has moved people to click, call, or buy in the past?
If you haven’t been paying attention to this, it may require some testing, but can also be extremely effective, as people’s true motivations are revealed by the actions they take. They may not think of themselves as bargain-hunters, but if that discount code really worked, it’s good to know.
Using Psychographics in Your Marketing
Getting the psychographic data is important, but really applying it to your marketing is how you make it effective. How would you do this? Let's continue with our on-going example about the anti-aging, weight-loss product.
We've gathered some hypothetical data using the techniques outlined in the previous section, so now let's apply our data to our marketing strategy!
Once you understand what is important to her, you’ll know where to find her and how to motivate her. You’ll know how to give her what she wants - that offering deep discounts isn’t going to move her.
Instead, she wants to hear that your nutritional counseling service has worked for others and how it will give her better health without a huge time commitment. So, make sure you highlight customer comments to that effect.
When you know that she’s spending her free time on Pinterest, you can stop spending money on Facebook or newspaper and magazine ads. Instead, use her love of Pinterest and share time-saving household and nutrition tips and give her ideas for fun things to do with family and friends.
Watch what gets repined and analyze what that tells you about her. Did she love the one about the smiley-face veggie platters for an after-school snack? Give her more ways to help keep her kids eating well. If the “girl’s night out” inspirational quote went over big, give her more ways to have fun with her friends.
When you know that career and family are important to her, you’ll want to share articles highlighting the impact that good health has on job performance and ways to make exercise fun for kids.
Knowing more about her hobbies and interests will help you when you need to choose a prize for your next contest, what to blog about, and what sorts of images to use in your next ad. Before you know it, you’ll have more qualified leads than you thought possible!
Have you been using psychographics in your marketing without even realizing it? Please tell us how you do it below!
Originally published Aug 8, 2019 10:00:00 AM, updated August 09 2019