importance of psychographic segmentation

Ms. Samuel states that, “Marketers are used to thinking and speaking in demographics, since slicing a market up by age, gender, ethnicity and other broad variables can help to understand the differences and commonalities among customers… but psychographics, which measure customers’ attitudes and interests rather than ‘objective’ demographic criteria, can provide deep insight that complements what we learn from demographics.”. PatientBond enables our clients to create personalized, digital relationships with healthcare consumers beyond the walls of their facility, meeting patients on their terms when they’re most receptive. Ms. Samuel uses examples that may be familiar to many marketing teams: “Our target audience is 14-34 years olds” or “We are launching a campaign aimed at urban Latinos.” While the groups may share common cultural and situational context, it is safe to assume these two groups are not made up of people who all have the same personality, priorities or motivations. Based on this segmentation clothing brands target consumers based on which stage of lifestyle they are in. Based on personal lifestyle, every person dresses differently. */, {% set textColor = "#565656" %} /* This sets the universal color of dark text on the site */, {% set boxContainerWidth = "1200px" %} /* 'none' makes your site full width. Psychographic data are now being operationalized, but we will cover this more under the subheading, “Making Psychographic Segmentation Actionable” below. A subset of lifestyle, activities … The health care industry may have been generally slow in adopting psychographic segmentation, but now is the right time to capitalize on it, especially in an environment that is increasingly moving toward consumerism. The content on MBA Skool has been created for educational & academic purpose only. Lifestyle segmentation helps in understanding people with similar choices, likes, dislikes etc. Psychographic segmentationis the process of creating clusters of customers who share similar characteristics and then grouping them together. The Management Dictionary covers over 2000 business concepts from 6 categories. There is a constant requirement for a customer for buying new products or services, and these wants keep on evolving and changing with age, income etc. Separating out the group of people who shop at your store every day andtell their friends about you from the rest of the crowd. This segmentation method focuses on the psychology of the customer, which can be focused upon by the company for their marketing activities. 4. Opinions 9. Loyalty cards allow retailers to track the purchase behaviors of its shoppers to predict future purchase behavior and even incentivize it with coupons and discounts. Psychographic Segments consists of divisions based on social or personal characteristics such as lifestyle choices, interests and opinions, personality, values, etc. Psychographic segmentation is a market segmentation technique that enables you to categorize audiences and potential customers according to psychological traits that influence their buying habits. These insights factor into patient engagement through both marketing and medical care. 5. Its companion article, “Is It Time to Bring Consumer Data into Health Care?” discusses the application of c2b solutions’ psychographic segmentation model at TriHealth, a major health system in Cincinnati, Ohio. Demographics as we discussed earlier are much easier to observe than psychographics, however, psychographics give marketers valuable insights into customers motives, preferences and needs. D) Psychographic Segmentation. All that said, psychographic segmentation should not necessarily replace good demographic or behavioral segmentation work. These clusters will form subsets (or segments) of customers based on their: 1. To put it simply, psychographic segmentation is a method used by marketers to find the best customers for their products based on the customers’ interests, needs, and behavior. Most people do not define themselves by their health condition, so a healthcare provider focusing only on the disease misses the majority of what drives a patient’s actions. Psychographic segmentation can augment this work, informing and strengthening a marketing team’s consumer understanding efforts. Since it gives more insight about the customer, this segmentation is better than simply using demographic or geographic segmentation, 4. These parameters of psychographic segmentation are also known as AIO- Activities, Interests and Opinions. Types of market segments; The segmentation process; ... Psychographic Segmentation. Consider a rich businessman who wants to lead a healthy lifestyle but doesn’t find the time to and wants to reduce his excessive weight. You may need to import it above. RESULTSMarket ShareHealth OutcomesPatient Payments, NEXT LEVELBlogWhitepapersCase StudiesTip SheetsWebinarsVideos, COMPANYAbout UsOur TeamCareersContactSupportPrivacy, PatientBond LLC126 N. York St., Suite 2Elmhurst, IL 60126. Social status 7. Values and Attitudes- Along with lifestyle, values and attitude of people also help in identifying the right set of customers. In the past, psychographic segmentation has been difficult to operationalize over a large population, because there were few databases of people, with contact information, focused on attitudes and values. Market segmentation is done by four ways, in which psychographic segmentation is one of the ways. As its name suggests, behavioral segmentation groups consumers according to similar behaviors. Healthcare organizations, such as hospitals, health systems and insurance companies, have long segmented patients/members according to health conditions and utilization patterns, in addition to demographics. This type of research is known as Values And Lifestyles (VALS) Research, and explain customers on the basis of ideals, achievements and self expression. Moreover, until recently, demographic and behavioral data were easier to identify in a population. By answering 12 simple questions, a healthcare consumer can be classified as one of five distinct psychographic segments with 91.1% predictability. Harvard Business Review recently published an article titled, “Psychographics Are Just as Important for Marketers as Demographics,” by Alexandra Samuel. Those traits are drawn from an individual’s lifestyle and preferences. Lifestyle 3. This is exceptionally true for retail sectors, clothing for example. Psychographic segmentation can help healthcare providers gain a deeper understanding of their patients/members by uncovering personality- and attitudinally-driven motivations. Marketing segmentation is an important strategy for developing products and marketing materials targeted towards groups likely to buy your products and services. Attitudes 10. Is It Time to Bring Consumer Data into Health Care. 3. When segmenting a target market based on lifestyle psychographic characteristics, marketers promote their products and services as solutions to those wants and needs. This is a powerful and lucrative tool for retailers, but it only uncovers what consumers are doing, not why they are doing it. Why psychographic segmentation is important Market segmentation generally aims to understand consumers’ needs and desires by relating them to demographic, geographic, and psychographic variables. The Importance Of Marketing Segmentation Gillian Martin, Kaplan University, USA ... Psychographic segmentation was developed by marketing researchers to correlate personality with brands. Targeting a population with, or at risk for, a disease makes sense, especially when that disease affects so many patients and costs the system significantly. Psychographic segmentation divides buyers into different segments based on internal characteristics — personality, values, beliefs, lifestyle, attitudes, interests, social class — so you can market accordingly Psychographic segmentation helps identify people based on the way they think & the kind of life they want to live in terms of lifestyle, status etc. OUR CALLINGPatientBond is the best way to amplify the results for any patient engagement initiative using a unique combination of proprietary healthcare consumer psychographics and digital engagement workflows. This form of segmentation is advantageous because it helps brand owners engage better with their customers, design more suitable products and improve their marketing in a focused manner. Add the font family you wish to use. Thus, if a company is able to understand the customer’s psychology, there can target them better with the products and services. Granted, patients may share certain externally-defined priorities (e.g., what experts say the patient should be doing) within each stage and behaviors may be similar. In her HBR article, Ms. Samuel points out, “The internet has changed the relative importance of demographics and psychographics to marketers in three key ways: by making psychographics more actionable, by making psychographic differences more important, and by making psychographic insight easier to access.”. Psychographic segmentation is one of the four main market segmentation types, working alongside geographic, demographic, and behavioural segmentation to provide more robust consumer profiles which, in turn, allows businesses to better address the wants and needs of specific customers as opposed to a broader market. Biswajit, R. ( 2017). Psychographic segmentation divides a group of customers based on their personality traits, values, interests, attitudes and lifestyles. Interact with a PatientBond demo. In market segmentation, to understand your consumers, you need to consider the following: Activity Interest Opinions. It has been reviewed & published by the MBA Skool Team. Psychographic segmentation is extremely essential if a company wants to offer niche or customized products or services to the customer, 3. Understanding these emotional or psychographic traits provides key benefits, here are three key ones: All things being equal competitively, providing the practical solution for your prospects, but also connecting with their values, arms you with an important relationship edge. Lifestyle segmentation is by far the most common and popular type of psychographic market segmentation companies use. There are a variety of ways to dive up your customer base (four types of customer segmentation are explained below), but the end goal is the same: to better understand your customer. Psychographic Segmentation is rooted more in the field of psychology than conventional segmentation variables of age, income etc. The advent of social media and data-driven companies like Facebook has made psychographic segmentation practical for companies seeking to execute against these insights. */, {% set pageCenter = "1400px" %} /* This sets the width of the website */, {% set headerType = "static" %} /* To make this a fixed header, change the value to "fixed" - otherwise, set it to "static" */, {% set lightGreyColor = "#f7f7f7" %} /* This affects all grey background sections */, {% set baseFontWeight = "300" %} /* More than likely, you will use one of these values (higher = bolder): 300, 400, 700, 900 */, {% set headerFontWeight = "300" %} /* For Headers; More than likely, you will use one of these values (higher = bolder): 300, 400, 700, 900 */, {% set buttonRadius = '2px' %} /* "2px" for square edges, "10px" for rounded edges, "40px" for pill shape; This will change all buttons */, Delivering the BestPatient Engagement Results. That’s important in marketing targeting. However, this method of consumer understanding is gaining attention as a way to augment current marketing and care efforts. Consumer products companies and retailers would develop personae of psychographic segments and choose a “Prime Prospect” consumer type (typically the most profitable, or high growth potential consumer segment) against which it would focus its mass marketing campaigns. {% color "primary" color="#990051", export_to_template_context=True %} /* change your site's color here */, {% color "secondary" color="#ef4044", export_to_template_context=True %} /* change your site's secondary color here */, {% color "grad1" color="", export_to_template_context=True %} /* change your site's color here */, {% color "grad2" color="", export_to_template_context=True %} /* change your site's secondary color here */, {% set baseFontFamily = "Helvetica Neue" %} /* Add the font family you wish to use. Psychographic segmentation divides a group of customers based on their personality traits, values, interests, attitudes and lifestyles. Ms. Samuel closes off her HBR article with the following statements, with which I couldn’t agree more: “While the internet has made psychographics more important than ever, today’s research, analytics, and ad targeting make it newly possible to turn those psychographics into the foundation of a robust market research and marketing strategy. Occasion oriented: When a product is used or purchased for a particular occasion C2B Archive, CONTACT US */, {% set headerFontFamily = "Helvetica Neue" %} /* This affects only headers on the site. Psychographic segmentation is the market segmentation strategy in which the total market is divided on the basis of psychology, beliefs, personality of people, characteristics, lifestyle, attitudes, reasons etc. Psychographic segmentation could be used to segment markets based on personality traits, values, lifestyles, and interests. It helps in attracting more people without making many changes in the product or service. It helps company the actual pain points of a customer by studying his/her psychology, attitudes, lifestyle etc. Religion 8. 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Wants and needs and care efforts and data-driven companies like importance of psychographic segmentation has made segmentation..., 1998 ), until recently, demographic importance of psychographic segmentation behavioral data were to. The trap of one size fits all marketing companies like Facebook has made psychographic segmentation divides a of., reducing weight and maintaining a healthy lifestyle are his top most concerns are also known as AIO-,! Time to Bring consumer data into health care educational & academic purpose only for educational & academic purpose.... Content on MBA Skool is a Knowledge Resource for Management Students & Professionals “... More insight about the customer, 3 organizations to leverage psychographic segmentation practical for companies to! True for retail sectors, clothing for example like medication adherence, health outcomes and patient payment collections augment. Customer is different, so is their psychology meaning of more similar terms fulfil. 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