Psychographic segmentation is an approach used in market research to group customers according to their unique personality characteristics. Using Psychographics as a baseline for segmentation, marketers are able to understand the reasoning behind consumer behaviour. In other words, it enables them to better recognize what subconsciously drives consumers to purchase a product or a service.
As we will explore, the benefits of Psychographic segmentation enable your marketing activities and product innovation to be more consumer-centric.
At Symanto, we use Artificial Intelligence to automatically identify customers’ personality traits and communication styles from the text they produce on different online channels. Our analysis provides deep insight into the motivation behind consumer behaviour, and enables us to read between the lines of organic conversations online.
Psychographic Marketing Segmentation offers limiteless possibilities, here are just 5 of the key benefits.
Benefit #1: Psychographic Marketing Segmentation remains stable across time
People change their behaviour over time due to a huge variety of unpredictable reasons – there is a new trend, they bought a new, better smartphone and are able to shop online, they aged, they started a family, etc. Using behaviour as a foundation for your marketing segmentation is unstable, to say the least.
You can counter this major drawback by constantly tracking new behaviours and revising your segments, but this is time-consuming and cost-intensive. It also implicates your wider marketing strategy, which would have to be reconsidered each time there is a change.
A person’s personality traits, on the other hand, stay relatively steady over time. Whether you are emotionally or rationally driven, for example, is something that is unlikely to change drastically over time. The benefit of using psychographics as a basis for marketing segmentation is that it gives you stable ground to divide your customers and build a detailed strategy that you can monitor and sustain over longer periods.
Benefit #2: Psychological profiling helps to explain the motivation behind buying behaviour
If we are only tracking consumer behaviour, there is no definite explanation as to the reasoning that motivates it. That much is often left to speculation, which is prone to human error, bias and prejudice.
Tracking the psychographic profile of your consumers helps to deliver a more accurate insight into why consumers behave the way they do. Together with psychographic profiling, the Symanto Insights Platform analyses what your consumers say about you online so that you can get deep insight into the reasoning behind their sentiment towards your brand.
Want to know why your newest product is particularly popular? The Symanto Insights Platform enables you to get an accurate overview of what drives your customers to favour one product over another. If you want more delve into more detail, simply click on a topic to read related posts and see for yourself what people are saying.
Benefit #3: Psychographic Marketing Segmentation improves communication
Communicate a message that resonates with your customers’ subconscious needs. As well as analysing text to distinguish personality traits, the Symanto Insights Platform also analyses text to reveal the writers’ communication preference. Is the writer action-seeking, information-seeking, fact-oriented, or self-revealing?
Understanding your audience’s preferred communication style will help to ensure that your messaging speaks to your customers’ needs in a way that mirrors their preferred style of communication.
Benefit #4: Psychographic segmentation can contribute to a better economic efficiency
The more satisfied the customer, the greater the impact on profitability. Imagine if every email and every social media advertisement you received from a brand seemed to speak directly to you. Would it affect your affinity towards that brand? Would you be more or less likely to interact with and buy from them?
We’ve all experienced spammy emails and poorly targeted ads that just missed the mark. These errors are costly. Use psychographic segmentation to improve accuracy in your targeted communication.
The Symanto Insights Platform also enables you to listen in on what your customers love about your product or service, and what needs improvement. You can use this information to make product development more consumer-centric and address pain points efficiently.
Both of these features of the Symanto Insights Platform will help you streamline your processes and work efficiently to improve the perception of your brand among your target audience.
Benefit #5: Psychographic Segmentation with Symanto provides higher accuracy
With the help of artificial intelligence, we are able to analyse large amounts of data within minutes. We can cover almost all customers that have written about or reviewed your company on the internet. This gives us the ability to build more accurate segments based on the entirety of your target group and not only on a pre-defined sample of the population.
There are many benefits to marketing segmentation, particularly via psychographic profiling. Psychographic segmentation provides a more stable way to track and measure your marketing performance and enables you to truly understand what drives customers to purchase. The better you understand your consumers, the better you personalize your marketing strategies to improve conversion rates and enhance customer relationships.