Understanding Consumer Segments in the Automotive Industry

When businesses tailor their communication and offerings based on psychographic insights, it helps current and prospective customers psychographic feel valued and understood – leading to greater trust and, consequently, loyalty. This offers a fuller, richer understanding of their target audience, and can help businesses to anticipate future needs and desires. While behavioral segmentation provides insights based on actions (like purchase history or website visits), psychographic segmentation delves into the reasons behind those actions.

In contrast, psychographics measure customer interests and attitudes rather than objective demographic data. Where psychographic segmentation of this harvested data is concerned, this future is also bright. However, most of the regulations that are currently being contemplated as a result of the Cambridge Analytica scandal have more to do with data mining practices than psychographics per se.

Although StatSocial gathers demographic and geographic data as well, it leverages personality- and interest-based data to provide a more comprehensive view of consumers. These “clusters” group people together based on what motivates them, showcasing personalities and preferences throughout. While some of these tactics blend with more run-of-the-mill digital marketing, it’s easy to see in StatSocial’s work how a psychographic flavor has permeated the latest wave of digital marketing tech. Another company, Baker Capital-backed StatSocial, gathers “essential insights across 60+ social networks and every major blogging platform” to help companies understand their social audiences.

Psychographic Data

Each profile calls for entirely different messaging and brand positioning even though every demographic variable is identical. Developed in the 1970s, psychographic segmentation applies behavioral and social sciences to understand consumers’ decision-making processes, attitudes, and communication preferences. Rather than grouping people by measurable traits like age or income, it groups them by what they think, care about, and aspire to. Psychographic segmentation categorizes audiences based on internal drivers such as beliefs, values, interests, attitudes, personality traits, and lifestyle patterns that influence how they think and behave. Google Keyword Planner is a free tool that lets you research the queries people type into Google.

• These are strong indicators of sports and religion being interests for Chick-fil-A users.
• Google Analytics has a free version available for small to medium-sized businesses.
• By analysing the responses, you can identify common themes and patterns among different psychographic segments within your audience.
• By applying analytics to break down the marketplace of consumers into smaller groups, marketers and advertisers can profile and target key audiences more effectively.
• Segmentation by psychographics can reveal opportunities for new products or features that you might miss otherwise.
• And as is the case with existing markets, you’ll also get better engagement and conversion rates.

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The combination of data mining, addressable ad tech, and behavioral psychology that make up psychographics can be used to advertise nearly any product or idea. These psychographic insights — as well as behavioral and demographic data collected — allow CaliberMind to build out buyer personas that clients can then leverage in their marketing and advertising strategies. If you’re emotional, I’m going to use more emotional language.” — Raviv Turner, CEO CaliberMind If you’re analytical, I’ll send you a return-on-investment calculator or a spreadsheet.

CoreHealth is a good example of how psychographics is being refined and deployed in the health services sector. Product industry players like car manufacturers are not the only ones profiting from new psychographic techniques. A customer’s knowledge that advertising is targeted and tailored directly to them increases their confidence that the products they consume directly reflect their own unique combination of personality traits and thus their own individuality. With its emphasis on the individual’s personality traits, psychographic marketing reinforces the connection between product and personalization.

Promote your product’s unique qualities or applications that align with an audience's main goals, ideals, attitudes, and beliefs. The price can be high, so consider using it when you're familiar with psychographics and know how to use it for maximum value. Consider your analytics data from the perspective of psychographics and look into what exactly motivated market activity. You can also include surveys in your post-purchase communications to receive data fresh after purchase. Interviews also reveal the motivations that led them to choose your product over any other.