What is Psychographic Segmentation? Why You Need It?
Psychographic segmentation is one of the driving factors in human lives. You might find it surprising, but this concept has an impact on every choice you make. Like whom you get friends with, who you marry, who works or the career you choose, where you go for vacation, and others. It's a critical factor that psychological segmentation gets you closer to your buyer persona than demographic segmentation.
Do you wonder why and how? Also, do you believe that psychographic and demographic segmentation are similar? Well, then you must read this blog.
What is Psychographic Segmentation?
Firstly, know that both types of segmentation have different characteristics. While demographics provide basic user details (name, age, etc.), psychographics provide the personal traits of users.
When you personalise the user experience based on their personal details, you do demographic segmentation. On the other hand, personalising the user experience based on their personal traits is psychographic segmentation.
Let's take an example by creating a user profile for Sara:
Demographic:
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28 year old female
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Lives in Los Angeles, CA
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Millennial
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College-educated
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Digital marketing manager
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Household income $120K
Psychographic:
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Active lifestyle and foodie
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Early adopter of trends
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Values experiences over possessions
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Favors environmentally/socially progressive brands
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Extrovert who enjoys social events
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Pop culture enthusiast
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Interests in food, travel, entrepreneurship
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Hobbies like hiking, cycling, photography
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Listens to podcasts
With the details mentioned above, the difference is crystal clear. As a result, you need both but should know the difference while using them. Demographic details will help you identify your user persona, but psychographic details will help you clearly understand them.
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What are the Critical Psychographic Factors?
Users from the same demographic segment don't need to have the same traits. In a group of people of the same age, some may like rock music while others may like classical music. When creating psychographic profiles, there are a few key factors that provide crucial insights into target audiences.
1. Personality
Personality is the core of your users. It tells you the way they interact with society, like if they are creative, introverted, or extroverted. Such personality traits can be identified among your target audience, and they can be classified accordingly.
Their personalities will determine their actions against your marketing campaigns. For example, a bookstore would attract more introverts as they like to spend time alone or reading. Similarly, a city event would attract extroverts, as they like to meet people and socialise.
2. Lifestyle
The lifestyle of users is an essential aspect of their buying journey. Their habits give you insights into their personal lives, which helps you predict their user behaviour.
If you sell health and wellness products or services, you will know who to target. Psychographic segments let you categorise and group these users more effectively.
You can better insights if you use an API notification service such as Notifly. It gives you deep insights into your targeted audience and helps you create effective marketing campaigns.
3. Social Status
The social status of your audience may not always determine everything, but it helps you identify compatibility with your products and services. It helps you identify upper-class and middle-class buyers and their preferences.
For example, if you are a seller of luxury items, you would approach users who have posted about them. You can also target users who like them on social media or talk about them.
Further, psychographic segmentation using social status helps brands price their products and services based on their targeted users’ spending power.
4. Activities, Interests, and Opinions
In short, AIO plays a critical role in psychographic segmentation. It tells you what your users care most about and how they think of it. By leveraging the activities, interests, and opinions of your users, you can segment them more efficiently.
For example, many individuals like hiking while others fear it. Similarly, if you are in the shoe business, you can use psychographic segmentation for different categories, ranging from athletes to office goers.
5. Attitude
The last but equally important factor in psychographic segmentation is attitude. The attitude of an individual is formed by a variety of factors, like personal experience, social influence, and cultural norms. Once formed, the attitude of any individual is difficult to change or takes a long time (if changed).
Here, marketers leverage this factor to create their marketing campaigns. They leverage it by providing positive reviews of the brand, highlighting the benefits, and showing the values that attract consumers.
For example, a consumer has a positive attitude towards the Nike brand. They believe that Nike products are high-quality, stylish, and durable. They also admire Nike's commitment to social responsibility.
As a result of their positive attitude towards Nike, consumers are more likely to purchase Nike products, even if they are more expensive than other brands.
Conclusion:
Psychographic segmentation is a powerful tool. It can help marketers better understand their target audience and create more effective marketing campaigns. By dividing consumers into groups based on their psychological characteristics, marketers can develop messages that are more likely to resonate with them.
