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Psychographic Market Segmentation: What Is It?

Psychographic segmentation categorizes your customers by their personality, interests and other factors. This can be a powerful way of marketing the same product to people from otherwise dramatically different demographics. Every customer has a different psychographic make up. Analyzing that make up and grouping similar characteristics together is the start of psychographic segmentation.

Why Use Psychographic Segmentation?

When your target market seems to have radically different demographics it is a good time to look at breaking them into psychographic segments. This is a powerful way to market the same product to groups that otherwise seem very heterogeneous. Psychographic segmentation divides the market into groups based on not-so-visible characteristics, such as personality traits, lifestyles, attitudes, expectations and activities of your target market.

Psychographic Segmentation Increases Your Marketing ROI

By segmenting the market based on psychographic characteristics you are able to be more niche in your advertising buys; maximizing exposure to key segments. As a result, your money is spent more wisely and you should see an increase in your ad spend efficiency or a greater return on investment. You also can appeal more specifically to motivations in your messaging, which improve your conversion rate. Psychographic characteristics also play a key role in developing your target market personas.

Some of the major types of psychographic segmentation include:

  • Personality Traits: Brands, products, and services all have personalities. Marketers will often create these personalities to match the personality traits of their target market. When a consumer can relate to the characteristics of a brand, product, or service they are more likely to engage with it.
  • Lifestyle: Different people have different lifestyle patterns and their wants and needs change based on those patterns. When segmenting your market based on this psychographic characteristic marketers promote their products as solutions to those wants and needs. Segmentation by lifestyle considers where the consumer is in their life cycle and what is important to them at that exact time.
  • Opinions, attitudes, interests and hobbies: Includes opinions on religious, gender and politics, views on the environment, sporting and recreational activities, and arts and cultural issues. The opinions your market segments hold and activities they engage in will have a huge impact on the products and services they buy, and even how they respond to your messaging. This is the richest area of opportunity in online marketing and particularly with social media.
  • Degree of loyalty: Customers who buy your brand either all or most of the time are extremely valuable. By segmenting in this way, you can adapt marketing vehicles and messaging to retain your loyal customers. A rule of thumb is that it is 10-times more profitable to sell to existing customers than to find and sell to new ones.
  • Occasions: If your product or service is purchased or consumed around an event or occasion, it makes a lot of sense to segment this way. Purchases made for weddings, holidays, etc. are examples. If the offering fits into this category, you may want to experiment with broadening usage to other times by using benefits sought, lifestyle or attitudes segmentation as well.

Proper psychographic segmentation is a more costly segmentation approach;however, when you can group prospective purchasers into meaningful groups that define choices they make and messages that resonate with them you will have a more effective and successful marketing campaign.

Get Started Segmenting Your Market; LocalDirective Can Help

Just about every company could benefit from specialized targeting using demographic, psychographic, behavioural or geographic methods. At LocalDirective, our goal is to deliver maximum volume of business from the highest profit-producing segment. Thus, your national advertising may have some local or regional components to achieve the highest ROI, utilizing the capability of all of the major search engines (Google, Yahoo & Bing) to allow your ads to be shown to visitors located in the US, in targeted metros or states within the US, or even a radius around particular locations.

Why LocalDirective? Unlike other digital marketing agencies that have one specialty or one point of view, LocalDirective has a rich and widely dimensional body of expertise in marketing strategy development,marketing plan development, online marketing and advertising, and website development, You need marketing segmentation to be effective, so why not choose a digital agency that has the in-house experience to deliver what you need?

Make Contact. Either complete the Brief Information Contact Form or give us a call, toll-free at 1.866.925.9524 today. Let’s get started!