Divide and conquer: psychographic segmentation

All companies around the world have implemented basic market segmentation, taking into account factors such as age, gender, geographical location, or economic level. This is why today it’s necessary to go much further and truly understand the customer, which can be achieved through psychographic segmentation.

This system goes deeper and creates much more differentiated groups of consumers, including motivations, thoughts, and even feelings. Today, we’ll teach you more about this type of segmentation, explaining how you can implement it in your business, along with examples and benefits it could bring to you.

What is Psychographic Segmentation?

It’s a type of segmentation that classifies leads or consumers according to their psychographic profile. This includes deep and abstract aspects, such as desires, lifestyle, personality, feelings, interests, concerns, and motivations, among others. With this, profiles of people with similar personalities, stimuli, and consumption preferences are defined.

By having this profile, you get to know the customer better, allowing you to design more effective strategies that generate genuine interest. If done well, it creates a stronger connection with them, fostering loyalty and saving resources by selecting the best profiles.

How Can You Implement It?

How do you perform psychographic segmentation? It’s easier than it seems, and you can do it in just three steps.

1. Find Your Target Audience

The first step is to do traditional segmentation, which is compatible with psychographic segmentation. In fact, it’s a preliminary step that helps filter and reach the target audience you’re looking for.

For example, you can segment by age, location, or job. Keep these data, and later, you’ll be able to perform a deeper division with them.

1. Collect Information for Psychographic Segmentation

Now that you have your audience, it’s time to collect information. There are three ways to do this:

• Ask the customers: Often, it’s easy to know about prospects if you ask them directly. Conduct surveys, questions, and forms that will help you understand their behavior more deeply. You can ask voluntarily or hire a surveyor to offer paid surveys to potential customers.
• Use browsing data: Users often leave data behind that we can collect. If they give permission through cookies and you comply with privacy laws, you’ll learn a lot about them, including time spent on the website, articles visited, purchases made, and where they click.
• Ask your employees: Lastly, you can ask your staff, especially those who have interacted with the customer directly.

1. Group Them Based on the Information and Create a Buyer Persona

Once you have all the information, it’s time to segment it. Since collecting and interpreting so many data points can be complex, you can use our advanced analytics tool, which will help you save time and resources by using artificial intelligence to automate these campaigns.

Once you have the data, you need to create a buyer persona based on what you’ve gathered. Ask yourself who your ideal customer would be and what traits they would have.

Examples of Psychographic Segmentation

So far, we’ve covered how to collect and segment data, but we haven’t discussed the differences that usually exist between different psychographic profiles. Understanding these is crucial for segmenting and knowing how to differentiate your customers.

• Personality Type: There are 16 different personality types according to studies. A person can be introverted or extroverted, emotional or rational, sensitive or intuitive, and analytical or perfectionistic. The combination of these types results in their final personality.
• Attitude Toward Life: There are different ways of dealing with problems and making purchasing decisions. A person can be kind, confident, serious, optimistic, or proactive.
• AIO: Known as Activities, Interests, and Opinions, this refers to the customer’s perspective and reaction to a subject. Some are very knowledgeable about a specific topic, while others don’t care.
• Social Status: This doesn’t just refer to purchasing power, but also to the prospect’s self-perception of their status. In some cases, they may be willing to purchase luxury products even without money, thanks to financing options.
• Lifestyle: These are the customer’s daily habits and way of living. How do they prefer to shop? What matters most to them? How often do they consume your product? What do they do for a living?

Benefits of Psychographic Segmentation

Lastly, let’s talk about the advantages of successfully implementing a psychographic segmentation strategy.

• Higher Conversion Rate: By fine-tuning your marketing strategy, it’s easier for a lead to become a customer, as you’ll offer them value and give them exactly what they want, when they want it.
• More Loyalty: If you segment your audience well, it’s easier for them to remain loyal and keep buying your new products or the same ones regularly. This is because they’ll connect with you to the point of giving you free advertising.
• Cost Savings: While there’s an initial investment in segmentation tools and time, in the long term, it’s less expensive. With better segmentation, you’ll spend only what’s necessary, avoiding wasting money on advertising to leads that will never buy from you.
• Better Brand Image: By being perceived as a company that cares about its market niche, you’ll improve your image with them. Also, with loyal customers who promote your brand, your reputation will improve even further.
• Easier Content Creation: If you struggle with coming up with valuable content to nurture leads, this strategy will make it easier. You’ll know exactly what interests your buyer persona and what they’re looking for, boosting your creativity and ensuring there are always ideas on the table.

As you can see, by segmenting your audience and understanding their needs, it’s easier to get into their minds. Don’t miss the opportunity to do so. Contact Indigitall.