The Future of Audience Targeting: Psychographic Segmentation

The Future of Audience Targeting: Psychographic Segmentation

The average person encounters between 6,000 to 10,000 ads every day

The sheer volume of ads has changed the way consumers perceive the ads they see. Audiences are growing numb to advertising, skipping YouTube ads and reflexively ignoring ads when scrolling.

So, how do you get your target audience’s attention? 

Today’s advertisers have access to more data points than ever, and those who refuse to responsibly use this wealth of information will get left behind. Demographic and geographic data are no longer enough to create and launch successful marketing strategies—they are merely tiny pieces of the larger audience segmentation puzzle.

While demographic and geographic segmentation tell you who audiences are as consumers, they don’t answer the more critical question of who your audiences are as people. If you want to create advertising strategies that will successfully engage your customers, you need a thorough understanding of their buying decisions. That’s where psychographic segmentation comes into play.

What is psychographic segmentation?

Psychographic segmentation divides buyers into different segments based on internal characteristics, such as personality, values, beliefs, lifestyle, attitudes, and interests.

With psychographic segmentation, you consider: 

  • What the user values in life
  • The pain points they face
  • Why they behave the way they do
  • How you can help them solve a problem in a way they will find valuable

This type of segmentation focuses on understanding the customer’s emotions and values, so you can market to them more accurately. Understanding your customers’ psychological characteristics is the final piece of the puzzle when building a holistic customer profile.

Five psychographic segmentation variables help you create your audience profiles: 

  1. Personality. There’s an unmistakable correlation between customers’ personalities and their buying habits. When segmenting by personality, you must consider factors such as their beliefs, morals, motivations, and overall outlook on life. 
  2. Lifestyle. This variable helps you access how users spend their time and money. A brand can design products or services for different lifestyles. By analyzing customers’ preferences, you can target receptive audiences.
  3. Social status. This factor affects product choice, price, and niche markets. Each social group has its preferred (and affordable) brands of clothes, grocery stores, and holidays. For example, brands with higher price products typically segment their customers by social status.
  4. Activities, interests, and opinions. This variable includes enthusiasts and hobbyists and interests like sport and politics. It could be as simple as noting that a TV viewer is mainly interested in comedy movies or as complex as understanding an environmental campaigner’s beliefs and politics. 
  5. Attitudes. Our cultural background and upbringing influence how we behave in life. They reveal a person’s nature, and because attitudes are intangible, they need some imagination on your part when picking out your target audience. 

How to collect psychographic data 

Now that you know what data to collect, here are ways you can gather it: 

  • Send out surveys. The most commonly used way to uncover segmentable psychographic information is through surveys. Since psychographic data is qualitative, it’s best to use open-ended questions with open text answers in the surveys. 
  • Interview customers. Face-to-face interviews enable you to pick up on voice or body language cues that written answers might miss. Make sure you interview dissatisfied and happy customers—the former often offer deeper insights into what needs improving, while the latter are excellent for gathering positive testimonials. 
  • Organize focus groups. A focus group brings together a carefully selected, demographically diverse set of potential clients for a guided discussion about a product or service. These groups are valuable when you want to expose your product or campaign to a target set of customers and hear their reactions. 
  • Use analytics. Delve into your website’s analytics, browsing data and social media likes, retweets, and shares to get a good idea of the types of people who are interacting with your brand. Social media analysis helps you measure your brand’s overall sentiment and the “word on the street.”

Getting to know potential customers on a more profound level allows you to provide them with highly personalized advertising, which increases the chance of getting more advertising conversions and a high ROAS. 

How to maximize ROAS with psychographic segmentation

Here’s a breakdown of the ways you can use psychographic segmentation to create better advertising campaigns.

  • Create refined target audiences in ad platforms. After you’ve identified and refined your core audience, look for any psychographic commonalities your target audience shares. Does their affinity for specific brands or products hint at any underlying attitudes? For example, young moms who are interested in yoga might also be excited about other health-based topics, so you can target relevant offers to them. 
  • Craft emotionally compelling ads. Once you discover what makes your audience tick, you have the power to create ads that tug at their hearts and convince them to click the CTA button. Use emotional triggers in your ad campaigns to persuade visitors to convert.  
  • Reinforce your brand values for customer retention. Psychographic segmentation bridges the gap between your target audience’s unique beliefs and personalities and your brand’s mission to engage and retain customers. Patagonia is a perfect example of this; the outdoor clothing and gear brand understands environmentally conscious outdoor enthusiasts and trekkers and crafts messages that delight them and keep them coming back for more.
Patagonia homepage
  • Fine-tune your messaging. Armed with psychographic data, you can fine-tune your messaging to target each audience segment with highly relevant and personalized post-click experiences. Use conversion storytelling to speak to your segment’s unique beliefs and attitudes. Limit your proposition points, keywords, and tone to stay specific and personalized to the audience. 

Now, more than ever, marketers need to implement advanced segmentation techniques like psychographic segmentation to better understand and reach out to their target audiences. Once you’ve tweaked your marketing initiatives to reflect your psychographic data, you can increase your advertising conversions and improve business growth.

Start creating better, more personalized post-click experiences today with Postclick.

Unlike any other company in our space, Postclick guarantees higher advertising conversions for your brand, because we have data that proves we can. Our proprietary technology powers everything we do and helps you design personalized, optimized ad-to-page experiences to guarantee more advertising conversions.

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Fahad Muhammad
by Fahad Muhammad

Fahad is a Content Writer at Postclick, specializing in post-click experiences, advertising trends, and personalization. His expertise spans from advertising platforms to industry trends, optimization best practices to marketing psychology. In his spare time, Fahad loves playing “engineer” with his 6 year old—breaking apart and then fixing gadgets.

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