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5 Benefits You Need To Know About Psychographic Segmentation

Psychographic segmentation is an approach used in market research to group the customers according to their unique personality characteristics. Using Psychographics as a baseline for segmentation, marketers are able to understand the reasoning behind consumer behavior, what subconsciously drives them to purchase a product or a service. This means, marketing activities are more likely to be consumer-centric, developed within the ideal product for each consumer, advertised with resonating communication and placed in the right channel. 

 

At Symanto we use Artificial Intelligence to automatically identify customers’ Personality Traits & Communication Styles from the text they produce on different online channels. Such posts are analyzed with our technology in order to understand the messages between the lines, and to find out the motivation behind the customer behavior.

 

Furthermore, here are 5 benefits of Psychographic Segmentation: 

 

1. Remains stable across time 

 People tend to change their behaviour through time, due to huge number of unpredictable reasons – there is a new trend, they bought new, better smartphones and are able to shop online, they moved, they aged, etc. The segments build on such unstable foundation, should be constantly updated, which is timely- and cost-intensive and causes changes in the marketing strategy. On the other hand, a person’s personality traits stay steady through time, they give marketers a stable ground to divide their customers within groups and build a detailed strategy to monitor. 

 

2. Facilitates to measure and track consumer buying behavior  

 The psychological part of the segment delivers the insights about why customers behave the way they do, enabling the discovery of customer motivations. Therefore, marketers can measure more effectively the adoption of products and the impact of marketing strategies in the customer satisfaction. Furthermore, you gain the advantage to identify what kind of actions have worked better for each of the segment over time, making future strategic planning more consumer-centric. 

 

3. Ensures the development of a better addressing strategy 

 With the help of the automated Psychographic Segments, marketers can understand how to address customers better by communicating a message that resonates with their subconscious needs 

 

 4. Automatic Psychographic segmentation can contribute to a higher ROI (economic efficiency) 

 “The more satisfied customers are, the greater the  impact on profitability” (Best, R. 2013). You can reduce your marketing and product development costs, because you become more efficient in selling the optimal product for the right customer at the correct time. 

 

 5. Automatic Psychographic Segmentation provides higher accuracy  

 With the help of artificial intelligence, we are able to analyze big amounts of data within minutes and cover almost all customers having written about or reviewed your company on the internet. This gives us the ability to build more accurate segments based on the entirety of your target group and not only on a pre-defined sample of the population.  

 

 Summing up, Automatic Psychographic Segmentation provides a more stable way to track and measure your marketing performance, and enables you to truly understand what drives customers to purchase and repeat the purchase. Therefore, the better you understand your consumers, the better you personalize your marketing strategies that lead to superior conversion rates and a longer-term customer relationship.   

 

If you´d like to know more about how our Automatic Psychographics can help you to optimize your marketing activities, contact us for a free demonstration!

 

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