How to use Psychographic Profiling for your Growth Strategygrowthbuffs
How to use Psychographic Profiling for your Growth Strategy
When working on a business idea, you can only effectively reach your target audience when you understand them thoroughly. This insight can be provided by both their demographic and psychographic information about the buyers. The combination of both sets of data starts to form your buyer persona – a detailed picture of your target customers.
So what are demographic and psychographic profiling?
Demographic information includes gender, age, income, marital status – the basic facts explaining WHO the buyer is. On the other hand, psychographic information is information about the customers’ psychology. This might be your buyer’s habits, hobbies, spending habits, values, challenges, goals, needs explaining WHY the buyer buys i.e. presents their underlying motives/ motivations, thereby providing you with deeper insights regarding buyer behavior. It is essential for businesses to leverage on the buyers’ psychographic information to tailor the marketing strategy and elevate the customer experience to a personalized and effective one.
How to obtain Psychographic information or perform Target Market Research to develop Personas?
Customer data should be collected by means of qualitative and quantitative research. Traditional or quantitative research is useful in B2B segmentation and for planning broad marketing strategies. On the other hand, qualitative research is useful for identifying the profile of your early adopters and lead users.
There are broadly two major methods to obtain psychographics in relation to your buyers: interviewing your current clients and investigating your website analytics.
Interviewing Existing Clients
One way would be a one-on-one conversation with your typical client. When you talk to them, try to understand what their lifestyle is, what their challenges, motivations and needs are, what social media are they active on and what are their information sources, what their goals and objectives are, etc. Insights from real interviews are powerful – direct or face to face interaction, for instance through phone calls or video chats, with your customers can be a very effective tool towards understanding them.
If you would like to draw scientific conclusions based on large datasets, then using customer surveys/ questionnaire based interviews to identify customer needs and motivations would be the way to go.
Investigating Website or Social Media Analytics
A good way to understand your customer motivations is to observe user behavior on your website or Facebook page – what drove visitors to click, call or buy? This enables the development and understanding of the customers’ digital persona.
A relevant tool is Facebook’s Audience Insights (accessed via Ads) which can be used to do an analysis of the audience of a particular page. You can use filters to analyze what are the audience’ interests, what other pages they like. It can also be used to define possible launch (or growth) segments and deploy tests to compare Click through Rates etc.
These methods help us find patterns in customer groups and develop personas that can be used to guide marketing strategies. Customers’ motivations, needs, and goals can be used as part of the marketing message.
Assuming we used a combination of the above two methods to create a buyer persona for a weight loss program. Following is an illustrative buyer persona based upon the demographic and psychographic information of the ideal customer so obtained:
- Aged 35-60
- Dealing with issues of appearance insecurities, weight gain, diabetes
- Household income $70K+
- Concerned with health and appearance
- Wants a healthy lifestyle
- Balances career and family
- Has disposable income and a degree of decision-making authority
- Values quality and results over discounts
- Prefers to use Instagram over other social media and is a regular subscriber to fashion and lifestyle magazines
How do we use psychographic information to formulate our growth and marketing strategy?
Once you understand who your customer is and what is important to her, you’ll know where to find her and how to motivate her.
In the example above, you would focus your marketing efforts on platforms such as Instagram and fashion and lifestyle magazines. It is unlikely that a price reduction would have a significant impact on demand, rather exposing her to user reviews about the benefits of using the program, endorsement by a credible source, referral by a friend would have a greater chance of influencing the customer. You may also want to ensure that your marketing message emphasizes the relationship between good health and job performance and family life.
We will explore these ideas in more detail in our subsequent posts.
Do let us know your thoughts on this post and what you would like us to cover in our next posts, in the comments section below.