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Marketers know the role customer segmentation plays in engaging prospects and driving conversions. Among the four types of segmentation, psychographic segmentation allows you to understand your customers as they are.
Psychographic segmentation plays a driving role in our everyday life. We analyze people to see if we are compatible or not before we become friends with them or get married.
In business, marketers use psychographic segmentation to find customers compatible with their products & to learn how to market the product so the customers can discover them.
This blog will explore the role psychographic segmentation plays in business decisions.
Market segmentation refers to the categorization of buyers with homogeneous characteristics into segments. Segmentation allows marketers to target the right customers, in the right way, at the right time.
There are four main types of market segmentation, and they are:
Within this article, we will be focusing particularly on psychographic segmentation.
Our Market Segmentation guide can answer all your questions. P.S. It’s free!
Psychographic segmentation is a market segmentation technique that categorizes respondents based on their psychological traits. Specifically, the psychological traits that influence the consumption habits of buyers.
Customers are segmented based on internal characteristics such as lifestyle, attitude, interests, personality, values, social class, etc. These characteristics are analyzed to understand how different customer segments respond to various marketing campaigns.
Psychographic segmentation groups people based on personality, lifestyle, values, or beliefs. In contrast, demographic segmentation uses characteristics such as age, gender, education, income, etc., to group people.
While marketers use both segmentation types to develop marketing strategies, psychographic segmentation explores what motivates the customers’ purchase intent. It helps understand how your product adds value to their life.
A peek into a customer’s thinking helps product development, improves brand position, and creates personalized marketing messages.
When you start grouping customers using psychographic segmentation, there are many variables to consider when you start grouping customers. Jump to the following section to learn about these variables.
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There are five main variables of psychographic segmentation:
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Psychographic segmentation looks beyond objective and superficial data like demographic segmentation. Collecting data for psychographic segmentation can be challenging because you have to dig deeper beyond the obvious information.
Surveys are the efficient and simplest method to help you understand your customers and prospects. Surveys allow you to ask a variety of questions engagingly to ensure that participants don’t drop out of the survey and that you learn about their personalities.
You can ask open-ended questions to gain a deeper understanding of your audience. Use the Likert scale to understand the level of satisfaction/dissatisfaction. Or use a semantic differential scale or drag & drop questions to make the surveys interactive while learning about their priorities.
With that, you are ready to collect psychographic segmentation data from your audience and make better business decisions.
[Related Read: How to Segment the Market for a New Product in 5 Steps]
Psychographic segmentation adds an x-factor to the buyers’ persona, helping you reach the right audience with tailored messages and offers. The data helps you understand your customers and helps you learn how to engage with them.
In this digital world where customers feel more disconnected from their loved brands, marketers need to add an extra effort to know the customers. Psychographic segmentation helps you ensure that you offer value to your customers and positively impact their life.
[Related Read: Why is Market Segmentation Important?]
Start creating targeted segments with our market segmentation survey template.
Answer: These are a few goals psychographic segmentation can be used to achieve:
Simply put, demographic segmentation categorizes customers based on who they are, while psychographic segmentation categorizes customers based on why they buy. Demographic information includes data on buyers’ age, income, gender, education etc. Psychographic information includes data on buyers’ lifestyle, interests, and motivators.
Customer persona can be defined as a semi-fictional character that reflects the key traits of a significant segment of an organization’s audience. This persona is created based on the data collected on the organization’s customers.
Segmenting buyers using psychographic characteristics is important as it provides organizations with a much narrower view of their customer, and helps them increase the effectiveness of their targeting efforts. It brings organizations closer to the right customers: those who are likely to buy their products and/or services.