Know your customers: how and why to develop psychographics
Image composite sources: Christina @ wocintechchat.com on Unsplash; Brooke Cagle on Unsplash; Edward Cisneros on Unsplash
Oh, the taste of that fresh, minty flavor! Who does not love a good toothpaste? One of the most renown toothpaste producers, Colgate, actually tried to expand to the food sector… and failed miserably. In 1982, the toothpaste giant introduced a line of frozen food products, which resulted in declining sales. Shortly after that, the company reverted to their core business of manufacturing toothpaste. The issue: Colgate was uncertain about the specific wants and needs of their customers, or rather, what their customers expected from Colgate.
I know what you want and what you need… well… sort of
If it were this easy, every company would thrive—because a deep understanding of what your clients or customers want and require is crucial for success. Using market segmentation tactics by building homogeneous target groups is key—especially in this digital age. Being equipped with the necessary information will help you meet the needs of your desired customers in the best possible way. Not sure where to start? We put together some useful information to help you understand the importance of using psychographics for your business and how to start.
Why are customer psychographics especially important?
When it comes to selling your products or services, it's essential to know who you're trying to reach. That's where market segmentation comes in—it helps you figure out exactly who your ideal customer is and what makes them tick.
There are a few different ways to segment your market, like by where people live (geographic), how old they are (sociodemographic), or what they like to do (behavioral). But let’s focus on the psychographic segmentation! It’s all about understanding what your customers are like on the inside—their likes, values, interests, and opinions. By knowing these things, you can create ads and messages that really speak to them and make them want to buy from you.
How can you establish psychographics?
The psychographic involves determining characteristics of your ideal target persona such as attitude, habits, desires, lifestyle, values, outlook on life, and personality. There are many possibilities to develop your own customer psychographics, such as through:
social media
surveys and questionnaires
website analytics
interviews
focus groups
market research firms
The Laika crew has already put together an overview with specific examples about how to develop psychographics here (jump to the subtitle “Who’s in your fan club”). It's worth noting that gathering psychographic data may require a bit more legwork than other types of research. However, the invaluable insights gained from this approach can give you a serious competitive edge in today's market. So don't be afraid to put in the effort to truly understand your customers and give them what they really want!
What to do with the psychographics?
So, you've gathered all the data you need to truly understand your customers. But what's the next step? Well, now that you know who your customers are and why they choose your product or service, you can use that information to make some improvements in many aspects of your business. By incorporating these insights into your content, messaging, and branding, you can make sure that you're giving your customers exactly what they want. For instance, if you discover that most of your customers are passionate about the environment, you can make that a central focus of your campaigns and brand values.
Psychographics are a powerful tool for gaining a deep understanding of your customers’ needs. The more you know about your customers, the better equipped you are to provide them with a product or service they'll love. And when it comes to launching new campaigns or products, having the numbers on your side can make all the difference. As the bestselling authors Chip and Dan Heath say: "Data are just summaries of thousands of stories—tell a few of those stories to help make the data meaningful." With psychographics on your side, you'll be able to use those stories and make a lasting impact on your customers.