According to Wendell R. Smith in his famous article titled “Product Differentiation and Market Segmentation as Alternative Marketing Strategies,” consumers are unique and different. Consequently, they need an additional marketing program. Market segmentation is essential for several functions and purposes. One part of market segmentation is psychographic segmentation.
Basically, each product has a certain segmentation. Although certain products are for all, it is important for businesses to focus market segmentation on specific parts to maximize sales. Studying segmentation psychographically will help your business choose the right and efficient marketing strategy. As a result your business can reduce less necessary expenses, and maximize in the potential part. In creating an effective marketing strategy, you can use Marketing Automation Software to be more optimal.
Read the presentation of further articles to understand the understanding, characteristics, to how data collection in segmentation psychographically.
Table of Content
- Definition of Psychographic Segmentation
- Psychographic Characteristics
- How to Collect Data for Psychographic Segmentation
Read the presentation of further articles to understand the understanding, characteristics, and data collection in psychographic segmentation.
Definition of Psychographic Segmentation
According to Hotjar, psychographic segmentation is a qualitative method that focuses on customer attitudes. This method uses human psychological characteristics such as desires, values, interests, goals, and lifestyle choices as a segmentation parameter.
Psychographic grouping is how marketers position their products to find the right customer match based on the buyer’s attitude and lifestyle. The main goal is to understand consumers’ feelings better so that busines can do marketing more precisely.
Although psychographic and demographic look similar, there are differences between the two segmentation types. As an analogy, demographics can explain who the potential customers of your product are, whereas psychographics is more likely to explain why they want to buy the product. People in the same demographic group do not mean they have the same psychographic profile.
Five consumer characteristics are most researched in psychographic segmentation. These five characteristics have various aspects that will be most useful for determining a suitable product for you to adjust to the audience. Here’s the explanation:
An individual’s personality is a trait that develops over time. In general, you can use a five-factor model to assess this.
If the results of this modelling show that most customers of your product have low extrovert scores, you can assume that they are introverts.
You can use the image or graphic design for marketing the appropriate product in terms of marketing. For example, based on their personality, you can use graphic design that depicts someone using your product, enjoying an element of serenity, and more.
A person’s lifestyle represents their decisions, such as how much money they spend on products. The activities a person undertakes, their level of involvement in those activities, and how they engage in them give an idea of their lifestyle.
Also Read: USP is an Effective Way to Attract Customers
People who lead a healthy lifestyle, for example, will appreciate exercise and a neat and clean environment. They are more selective in their product selection, for example, buying only organic, sporty food products and supplements. Usually also willing to pay more for the appropriate value.
The definition of interest or interest is the desire to know or learn. Companies can learn about it through the hobbies or habits of their audience while using media and leisure time.
People who have a passion for football, for example, can spend a week on the field with their friends on occasion. They also hold events to watch their favorite club games and buy various souvenirs or attributes.
In digital marketing, interest can be known through algorithms how intensely your audience figures out something. Automatically, social media will assume the audience is highly interested in the search is related to it often. To facilitate business marketing, use HashMicro’s best Marketing Automation Software.
This psychographic category is frequently associated with political understanding and other perspectives on what is going on in the world. For example, if your product’s target market is religious people, display clothing that reflects their beliefs.
The meaning of value in this context is good or bad judgment. For example, if your target market is more concerned and supports the anti-plastic movement, show that your product has the uniqueness of packaging without plastic or using a paper bag.
How to Collect Data for Psychographic Segmentation
According to Oberlo, there are several ways to obtain psychographic data, namely by conducting surveys, comment interviews, and the use of Google. Here’s the explanation:
Conduct a survey
The most common method for collecting psychographic data from consumers is to conduct surveys. Keep questions closed for respondents to help them see their preferences more clearly. In addition, as an entrepreneur, you’ll find it easier to understand it due to more focused responses.
With the advancement of technology today, surveys can be conducted online using a variety of sophisticated tools. Use HashMicro’s Survey Management System, create high-efficiency surveys and easy-to-use applications. Get practical conclusions from customer feedback with a complete, structured analytics report.
According to the Hubspot page, interviews with consumers who have previously tried your product should be done. The questions you ask consumers should allow them to tell themselves more deeply, allowing their psychographics to understand better.
If your company is still in its early stages and not many consumers know yet, you can conduct interviews with people who fit your target demographic.
Discuss with customer service
Another method of understanding customer psychographics is to talk to teams in direct contact with customers, such as customer service or sales.
Ask about what keywords customers use frequently, what questions they often ask, and what language or terms they often use when discussing your company’s product or brand.
Facebook and Google
Technology is critical in data collection in the digital age. Popular apps for this are Facebook and Google, making it easy for you to get psychographic data in your company.
Both have tracking features that allow them to collect user data worldwide. You can take advantage of Google and Facebook’s tools such as Google Analytics, Google AdSense, Facebook Connect, Facebook Custom Audience, and many more to collect Psychographic.
Each prospective client or prospect has a different psychographic profile. When your segment group has very different needs and responses to your offerings and messages, psychographic segmentation becomes an excellent time to indicate your grouping.
After segmenting, you will easily create and execute a marketing persona. With psychographic segmentation, you can choose the most appropriate and targeted channels, the most reasonable order governance, and the most suitable offers to maximize exposure to key segments.
In the end, by spending wisely, the efficiency of advertising expenditures and conversion rates also increases. Automate cash flow management, financial statement creation, bank reconciliation, adjustment journals, invoicing, and many more with Accounting Software from HashMicro.