Companies have learned to segment audiences and more precisely find their target markets. Rather than focusing on easier ways of segmenting audiences by using demographics, companies are now focusing on how customers behave in terms of needs and attitudes. These behavioral segments reveal data that is more useful for targeting specific audiences. These behavioral segments reveal the target audiences that will be the focus of a marketer’s planning and goal-setting strategies.
Demographic segmentation is the most common form of audience segmentation and includes observable data like race, religion, sex, age, occupation, and marital status. This type of data is very accurate when it is first-party data. Demographic data can also be obtained through a consumer’s social media profile. This information is usually provided willingly by the consumer. In addition, second-party sources like credit bureaus and public records can also provide useful demographic data.
Behavioral Segmentation
While demographic data can provide useful insights into a consumer profile, behavioral and psychographic data have become more valuable because they provide information about the motives and habits of consumers who are on the customer journey. For example, some behavioral data can include:
• Shopping habits online: can determine where, when, and how likely someone may make an online purchase.
• Website Behaviors: can show how long someone stays on a site, or how many articles they read on particular pages.
• Determine what benefits they are looking for and how their needs would be met successfully.
• Rate of Usage: can determine if someone is a light, medium, or heavy user of your product or services.
• Loyalty to a product: can be determined and categorized so messaging can be tailored to their customer journey depending on their degree of loyalty.
Psychographic Segmentation
Some companies also use psychographic segmentation to determine mental and emotional behaviors as well. Understanding the mind of the audience can help create content that is aimed at characteristics like areas of interest, personality traits, values, beliefs, and lifestyles.
Demographic information can provide important information about who the audience is and what they look like. But psychographic information can tell you why people buy something or not. This data can show why some people click on the CTA or ads and why some people ignore them. This psychographic data can show why they do things, therefore helping marketers cater precisely to their behaviors, needs, and wants.
While demographic information is important in segmenting audiences and determining the target market, behavioral and psychographic data create valuable insights into the mind of the consumer. This info can be used to segment and serve the appropriate target audience. Using behavioral and psychographic segmentation is vital to determine the target audience and serve them the correct content, messages, and offers that will appeal to their specific mindset and create loyal customers.
—Robert Vergara
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