The rise of digital technology has changed the way businesses attract new customers. Thanks to the internet, it’s now easier to reach customers anywhere in the world, but this doesn’t mean that sending a bunch of emails with product offers to random addresses will help you gain success. In fact, it can have the opposite effect. To create ads that would resonate with consumers, most companies use demographic data such as age or gender, but to truly understand your customers, relying on demographics alone isn’t enough. To gain a deeper understanding of what customers want and need, companies should explore ‘psychographics’ – attitudes, values, and other psychological factors that dictate consumer behaviour.
How can psychographic data help businesses to sell more?
While demographic data helps companies identify customers based on gender, education, or income, psychographic information goes a lot deeper. When using psychographic data, which covers consumers’ personality, lifestyle choices, and attitudes, businesses are able to better personalise their marketing messages and adjust offerings. This can, in return, lead to higher profit. For instance, if a company finds that a large portion of its target audience consists of consumers who value budget-friendly products, it can adjust its product prices to better resonate with customers and increase the chances of a sale.
And collecting psychographic data can be done in different ways. For instance, focus groups are a common research method used in marketing, in which facilitators observe and analyse how participants react to a particular situation or product. But probably the easiest way to collect psychographics is through online tools such as social media or online surveys. Browsing data can be helpful as well. Besides providing companies with demographic information, browsing data can reveal audience interests.
When used correctly, psychographics can benefit both companies and customers. Some businesses are aware of this opportunity and are relying on psychographics to better target their customers.
Maxwell House knows what moms really want for Mother’s Day
The American coffee brand Maxwell House conducted a national survey and found that 89 per cent of moms feel overwhelmed with their never-ending to-do lists. Despite doing so much for their family’s wellbeing, their work often gets overlooked. To acknowledge them for their hard work and make their ‘invisible labour’ more visible, Maxwell House launched a 2019 Mother’s Day campaign featuring a pop-up shop in New York City. Between May 6 and May 8, visitors had a chance to learn more about invisible labour, send personalised cards to their moms, and video chat with them.
Maxwell House knows that moms like spending quality time with their children. In fact, its survey showed that eight out of 10 moms would opt for spending some quality time with their kids on Mother’s Day, instead of receiving a gift. For those who can’t be with their moms in person, sending a personalised card and telling them how much they appreciate their hard work can still mean a lot.
Liberty Mutual’s ad is a perfect combination of psychographic data and scent-based marketing
Another interesting marketing move comes from Liberty Mutual. This insurance company was inspired by research suggesting that the majority of car buyers wait until they make the final purchase to think about car insurance. So, Liberty Mutual decided to create a scented print ad to promote its insurance deals among car buyers. The ad reads “If you’re thinking about a new car, think about Liberty Mutual”, and after consumers take a whiff of the print ad that contains the scent of a new car, they will subconsciously memorise that scent. Later, when they find themselves in a new car during a test drive, the scent will evoke the memory and remind them of the Liberty Mutual ad. This could be the perfect symbiosis of scent-based marketing and psychographics.
Unlocking the power of psychographics to stay ahead of the competition
Psychographics is an exciting field of marketing that has great potential to change the way companies target their audience. By applying psychographic data to marketing campaigns, businesses can make their ads and messages more relevant and effective. Since the competition is getting tougher, businesses that want to survive and thrive will find psychographics immensely beneficial.