Psychographics Market Research
Psychographics is one of the four types of segmentation. It is also the study of the consumers based on their mental attributes. Psychographics explains “why” consumers are buying your product. It asks questions based on interests, values, lifestyle, income, and beliefs.
This type of Market Research has five variables:
- Social Status
- AIO (Activities, Interests, Opinions)
Demographics is about “who” the customer is. It entails finding data on age, gender, ethnicity, career, and education.
Demographics and Psychographics work together to create a perfect consumer profile. The business can now use this profile to format new ideas for its products. Those ideas are in line with what the consumer desires.
Why is it Important?
The success of a business lies in its ability to provide the best services to customers. You can only offer the best services if you know the exact customers to whom you are marketing. It also helps narrow the customer outlook. Doing so makes it easier to target those who are likely to buy your products and services.
It makes it easy to manage resources. When you understand consumers’ needs, you save resources. You can then develop more accurate products. You also save money from brand campaigns if you have a targeted crowd.
Psychographics applies to many businesses. It is also helpful to customers. By learning their interests and dislikes, you can reject and launch products and build interest in the company. No one would seek a product not targeted to them.
Psychographic segmentation is qualitative. Yet, because of each customer’s broad range of AIO’s, the information is better understood. When the company understands its buyers, it can better its products. Seth Godin once said. “Don’t find customers for your products; find products for your customers.” By increasing the value of your products, you keep customers coming back.
Key Job Titles
The Marketing Director is responsible for brand and customer persona developments. They also test different channels to optimize the customer experience. To do so, they gather lots of demographic and psychographic data.
Customer Segment Manager
This person puts together all customer research groups. They must develop products that fall in line with customer profiles. They also transfer information for the promotion of goods to the marketing teams.
Key Success Factors
Social Media is a critical factor in psychographics. The best way to know “why” is to ask “why.” You can invite customers to give their reasons for buying your products in the form of online surveys. It is a great way to better your services.
Good marketing is also a vital success factor. The business must have a way to put all the psychographic data together. Doing so will enable it to cater to the needs of its customers. You can do all this through specialized advertising. Sales also define the success of this type of research.
Why Businesses Need Psychographics
Using psychographics is a creative way of better understanding your consumers. Customers are the root of your business. Without them, failure is bound to happen. Knowing your customer goes way beyond demographics. You also must understand how their minds work. You must know why they make the choices they do. With this, you can make your business and products work for them.
It helps to target specific consumers: those who would likely buy from you. An example of this is a candle-making business. A demographic survey shows “who” your customers are. Most of your buyers are women aged 17-26. This information is relevant but not enough.
You should know why they buy from you, whether because of price, product, or occasion. Will they use these candles for decoration, gifts, or self? These are all questions psychographics answer. You now have a holistic view and image of your customer and their opinion. Thus, you can better target your products to a specific group. You can even create new products, which will, in turn, generate more sales.
We’ve seen how this tool is vital in helping you find out why customers buy your products. It also helps your business to create a strong user persona. Such a persona helps send the right message to select people. The business would now take the role of the buyer. They can now ask what they would like from the company and their products.
Meeting customers’ needs in products also builds brand loyalty. It gives consumers the feeling that you know them. It also makes them feel special. By meeting their needs in products, you also evoke their loyalty to your brand alone.
About Psychographic Market Research
Psychographics is a unique form of consumer market research. Companies gather data through Focus Groups, Interviews, and Surveys. The data collected is a form of Qualitative Research, whereas demographics are Quantitative. Strategy Research is also important in making advertising plans. Thus, psychographics is excellent for consumer research.