In one of our previous blogs, we shared the story of how a client used psychographics to develop a target consumer profile. But, what does psychographics mean? Sometimes, people confuse psychographics with demographics, like age, gender, household income, and education. Rather, psychographics is about the habits and perspectives that influence consumers' buying choices.
Simply put, the term "psychographics," a person or group of people’s predisposition to act in a certain manner. Similarly, psychographics is understanding what makes people tick. Psychographics actually help companies anticipate and meet deep-seated, consumer needs. Consequently, it can be critical for putting together a successful relationship marketing campaign that feeds long-term customer retention and increases customer lifetime value.
Psychographics elements include:
Because psychographics has been around since the 1970s, several profiling models are now widely available. Personally, my favorite is Nielsen’s “segments." They have a user-friendly zip code search engine that provides a glimpse into both the demographic and psychographic profiles within any U.S. community.
Psychographics examples that depict the company’s profiles:
35 Boomtown Singles:
- Low income, middle-aged, and no kids
- Live in affordable housing.
- An abundance of entry-level jobs in the area with many single and working-class people.
- Lifestyle traits:
- Typically shop at Target
- Listen to self-improvement audio
- Probably read Black Enterprise
- Normally watch the FX Network
- Typically drive a Kia Forte
05 Country Squires:
- Upscale middle age with kids
- Affluent baby boomers who left the city for small town living
- Own large properties
- Enjoy country club sports like tennis and golf
- Lifestyle traits:
- Usually order from Amazon
- Customarily vacation at ski resorts
- Often read Shape Magazine
- Normally watch The Biggest Loser
- Typically drive a Chevy Suburban Flex Fuel
In conclusion, psychographics is an avenue that can help identify your target market. Consequently, you can begin thinking strategically about what questions to ask when you’re preparing to bring a new product to market, strengthen a customer loyalty program, or increase market share within a specific niche.
A PERSONAL NOTE: Usually, psychographics addresses the “why.” Typically, anyone who knows me is aware that the “why” is what drives me. It's true that my parents weren’t impressed when this pursuit led to a (useless-in-their-opinion) Sociology major in college. However, it eventually led me to a career in market research. Now, in my market research, I can explore the "why" to my heart’s content, and still pay my mortgage. Apparently, that's also my very own, personal psychographic.
Nielsen MyBestSegments. (n.d.). Retrieved January 27, 2016, from https://segmentationsolutions.nielsen.com/mybestsegments/Default.jsp?ID=20&pageName=ZIP%2BCode%2BLookup