Psychographic Segmentation: Definition, Examples, and Types

Shririn
Shririn
Psychographic-Segmentation-Definition,-Examples,-and-Types
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Psychographic segmentation of customers is a new approach in marketing. Customer segmentation starts by answering the question, “why each customer group buys the goods and services you offer?”

In the conventional methods, marketing gurus would define customer personas based on demographic data. They include determining the age, gender, location, marital status, and profession of the most valuable customers.

Interestingly, in digital marketing, such data are usually available through website visitor tracking or social media platform insights.

Answering these questions helps you better understand the process of a customer’s buying decision. So, it is the prerequisite of the strategies and efforts aimed at increasing customer engagement and revenue.

But, to have a better idea of customers, some marketers examine customers’ psychographic parameters. They include the personality, activities, values, attitudes, and lifestyle of the target audience.

Generally, demographics are quantitative customer data, while psychographics provides you with customers’ qualitative data.

psychographic vs. demographic

Ideally, the optimum approach is considering both of these categories; demographics, and psychographics. Accessing a combination of data, based on different approaches, enables you to have a holistic perspective toward your customer groups.

As demographic data are easily accessible, here, we would like to highlight psychographic segmentation and its variables, instead.

Psychographic Segmentation Data

Customer segmentation data types include dividing based on demographic, behavioral, and transactional data.

The demographic data is about who your buyers are, while behavioral data refers to how users interact with your website to buy from you.

If you want to gather behavioral data of your website visitors, tools such as session replay can help you see how each visitor behaves on your website. Similarly, website heatmaps provide you with great behavioral data on your website visitors. So, they provide you with valuable qualitative data of your customers’ behavioral patterns. These are all services that website analytics tools can provide. The best of these tools is WatchThemLive analytics. This program, provides you with all these services and even more. This way, you are able to make your customers’ persona even better, which will lead to better campaigns and sales in the end.
If you are interested in investing in your customers, even more, sign up right now. 

On the other hand, transactional data reveals what customers buy. While psychographic data complement these data types for comprehensive customer segmentation.

data types

Any company that wants to understand its customers’ cognitive processes can benefit from the psychographic segmentation method. It is one of the most successful segmentation approaches when used with other types of customer segmentation types.

Now, if you are wondering what is psychographic segmentation, then here’s the definition of it:

Psychographic Segmentation Definition

Psychographic segmentation is a methodology to divide the market. In this approach, the psychological characteristics of people are the basis of segmentation. These characteristics impact consumption patterns derived from people’s lifestyles and preferences. It is mostly based on the way people think and see their lives and aspirations.

Customer personality and buying habits are interconnected. Businesses offering value to clients based on their routine requirements can create a successful product or service.

If companies apply these characteristics to produce goods, they can greatly improve sales. Some liquor, laptop, vehicle, and perfume producers make use of their customers’ personalities as the basis of tailoring their marketing efforts.

Advantages of Psychographic Segmentation

  • Helping understand consumer behavior.
  • Allows marketers to segment customers based on their views and opinions and can be used to supplement behavioral segmentation.
  • More effective than geographic or demographic segmentation since it gives information about buyers’ internal qualities such as hobbies, habits, and opinions.

Psychographic Segmentation Examples in Marketing

If we want to understand the usefulness of our topic, we need some examples. You can use our other article ‘customer-profiling-beginners-guide’ for this matter. But here, we will mention cases that make different segments:

1. Jewelry Brands

Consider a jewelry company that specializes in personalized accessories. To begin with, jewelry is a luxury item that appeals to people of the upper class who have a lot of money; that is, people whose social class and income levels allow them to buy such luxuries.

2. Plant-Based Food Company

A company that creates plant-based processed food can be used as an example of our topic. This product is particularly targeted towards people who follow a specific diet, such as vegetarians or pescatarians.

3. Baby Products

Baby food and diapers, for example, have a unique target audience: families and new parents. These divisions can be further divided based on consumer preferences and the many applications of your product.

Psychographic Segmentation Types

Psychographic data have various types which are examinable closely for each individual. Interestingly, it tells us about what people do, how do they think, and what is valuable to them. Here are the popular variables of psychographic segmentation:

1- Personality

Biological and environmental factors form personality as they affect specific behavioral, emotional, and cognitive traits. Market analysts can perform a personality segmentation to divide customers into groups of people with similar personality traits.

Different products and services can appeal to different personalities. Also, new functionalities for the examined personalities can be created.

Here are some of the personality types that are useful for customer segmentation:

  • Introvert
  • Extrovert
  • Emotional
  • Friendly
  • Creative

Each psychological model categorizes personality types differently. For example, two of the most popular models are MBTI with its 16 personality types and the DISC model. Though, you can use any model you prefer that suits your business and customers.

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2- Activities and Interests

This psychographic market segmentation focuses on what activities consumers do, what things they are passionate about, or what their views are on particular issues. These are AIO parameters, abbreviated from Activities, Interests, and Opinions.

Market researchers can identify favored goods and services based on behavior analytics. Moreover, they can develop marketing campaigns to appeal to a wide range of activities, preferences, and views.

A psychographic segmentation example of this variable is Johnnie Walker’s label using the “Game of Thrones”. It was targeting those interested in this series and drink whiskey.

3- Attitudes and Beliefs

An individual’s attitude is shaped by his or her childhood and cultural history. Each prospect has a unique mindset, which is useful as a predictor in psychographic segmentation.

So, you can divide customers into groups based on their beliefs and perceptions. Beliefs are an intrinsic parameter that gives insights into a customer’s fundamental behavior.

Each user has a unique mindset and attitude. Keep these considerations in mind when determining the target market for a new product feature. 

4- Values

Values are referred to the sense of right and wrong among people. They can include family, social, and environmental values, to name a few. If you know what values and virtues are important for your most valuable customers you can focus on them.

An example of this psychographic segmentation is IKEA’s sustainability campaign focusing on the brand’s attention to an environmental cause.

As value is a complex psychographic segmentation parameter, you can track online activity to determine your target market values.

5- Lifestyle

Manufacturing a variety of products for a variety of customers needs a huge investment. However, segmenting products based on lifestyle can make product development and marketing efforts more targeted and cost-efficient.

For example, a shoe designer can design shoes for different consumer segments such as office workers, athletes, runners, students, etc. Thus, segmenting categories based on consumers’ lifestyles leads to an improved product, as well as a more effective advertising campaign.

Conclusion

In this article, we discussed what psychographic segmentation is, its types, as well as some psychographic segmentation examples. Let’s conclude by saying that psychographic data can be used with demographic, behavioral, and transactional data for comprehensive market segmentation. When companies want to take the customer-oriented marketing path using these data types and analyzing them is beneficial.

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