By answering 12 simple questions, a healthcare consumer can be classified as one of five distinct psychographic segments with 91.1% predictability. Thus, if a company is able to understand the customer’s psychology, there can target them better with the products and services. These are the needs that a company can target using psychographic segmentation. Psychographic segmentation can help healthcare providers gain a deeper understanding of their patients/members by uncovering personality- and attitudinally-driven motivations. Over their careers at P&G and continuing with our current company, the founders of c2b solutions have extensive experience operationalizing psychographic segmentation to drive meaningful business and medical outcomes. Activities, Interests, Opinions- These three types help the company identify customers who have a similar liking towards activities, have interests in the same domain and what opinions they have about certain matters. Are they school going kids, are they college going teens, are they professionals o… 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. Despite several benefits, there are certain drawbacks of psychographic segmentation: 1. All three are commonly called AIOs, and only psychographics can produce this. Values 5. Population Health News asked me to author an article for the front page of their February publication titled, “Psychographic Segmentation: Innovation in Patient Engagement.” Hospitals and health systems are realizing that a “one size fits all” approach will not work across a population of patients. Personality 6. Segmenting is dividing a group into subgroups according to some set ‘basis’. D) Psychographic Segmentation. Quizzes test your expertise in business and Skill tests evaluate your management traits. These are a key to understanding motivations and why people do what they do. Those traits are drawn from an individual’s lifestyle and preferences. These clusters will form subsets (or segments) of customers based on their: 1. In these cases, psychographic segmentation is extremely critical for a company. All that said, psychographic segmentation should not necessarily replace good demographic or behavioral segmentation work. Hence it becomes increasingly difficult to catergorize all customers through psychographic segmentation. Since it gives more insight about the customer, this segmentation is better than simply using demographic or geographic segmentation, 4. Psychographic Segments consists of divisions based on social or personal characteristics such as lifestyle choices, interests and opinions, personality, values, etc. Psychographic segmentationis the process of creating clusters of customers who share similar characteristics and then grouping them together. Companies make products in order to fulfil the needs and wants of a customer. 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. Psychographic segmentation divides a group of customers based on their personality traits, values, interests, attitudes and lifestyles. Customer segmentation is a marketing activitythat involves breaking down your customers into a number of groups. Harvard Business Review recently published an article titled, “Psychographics Are Just as Important for Marketers as Demographics,” by Alexandra Samuel. Personality traits- This parameter is used to group those people who exhibit similar personality characteristics. Psychographic segmentation has been used in marketing research as a form of market segmentation which divides consumers into sub-groups based on shared psychological characteristics, including subconscious or conscious beliefs, motivations, and priorities to explain and predict consumer behavior. In market segmentation, to understand your consumers, you need to consider the following: Activity Interest Opinions. Psychographic segmentation is extremely essential if a company wants to offer niche or customized products or services to the customer, 3. Add the font family you wish to use. What is psychographic segmentation? 3. This is directly related to the human psychology or psychographics of a customer. 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. The advent of social media and data-driven companies like Facebook has made psychographic segmentation practical for companies seeking to execute against these insights. All rights reserved. Psychographic segmentation , also known as lifestyle segmentation, is one of the four main segmentation bases used in segmenting consumer markets, with the others being geographic, demographic, behavioral (which is sometimes also split down into benefits segmentation).. As you may have guessed, the word “psychographic” the combination of psychology … This is exceptionally true for retail sectors, clothing for example. 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. 5. Moreover, this is a disease-centered approach, treating the patient like a “walking health condition.” Patients are obviously more complex than this, with many responsibilities, interests and priorities beyond their health condition in their everyday lives. The importance of market segmentation. Companies can better understand the background and reasons for consumers buying products. I have known some healthcare companies (especially in the pharmaceuticals space) that segment patients with diabetes according to stage or treatment: pre-diabetes; newly diagnosed Type 2 diabetes; ongoing management of diabetes; advanced diabetes, etc. 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 directly related to the human psychology or psychographics of a customer. As its name suggests, behavioral segmentation groups consumers according to similar behaviors. 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. Placing marketing messages in front of consumers based on their interests is now commonplace. 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.”. You may need to import it above. Back in 1980, Arnold Mitchell developed VALS(values, attitudes, lifestyles) which became a technique for marke… That’s important in marketing targeting. Interests 4. Psychographics pertain to people’s values, attitudes, lifestyles and personalities. Lifestyle segmentation is by far the most common and popular type of psychographic market segmentation companies use. This is also related to brand personality, where companies try to correlate to the customer’s personality. 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. These insights factor into patient engagement through both marketing and medical care. Psychographic segmentation helps you position the same product differently for different types of people. Diversity of thought is an important consideration when appealing to a target audience. 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. Social Status- The kind of status that a person enjoys in the society also is a relevant parameters used in this type of segmentation. Psychographic segmentation involves dividing a market into segments based upon different personality traits, values, attitudes, interests, and lifestyles of consumers. Interest segmentation can help us determine whether someone’s buying motivation is due to internal factors or external factors. Marketing segmentation is an important strategy for developing products and marketing materials targeted towards groups likely to buy your products and services. */, {% set headerFontFamily = "Helvetica Neue" %} /* This affects only headers on the site. These bases range from age, gender, etc. Occasion oriented: When a product is used or purchased for a particular occasion Along with behavioral segmentation, psychographic segmentation can help completely understand the customer behavior, attitude and personality. Based on personal lifestyle, every person dresses differently. Based on this segmentation clothing brands target consumers based on which stage of lifestyle they are in. As it provides details about factors such as lifestyles, interests, opinions, etc., it is much more … Market segmentation is important because it helps you to understand different target … TriHealth has been piloting a successful health coaching program using the model, focused on patients with diabetes and musculoskeletal issues, to build connections with patients and help them achieve their health goals. 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. In the simplest of terms, psychographics aid in market segmentation and help you identify your perfectcustomers within the pool of potential customers. The results for our customers: significantly improved market share, health outcomes and patient payment collections. Interact with a PatientBond demo. 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. The Importance Of Marketing Segmentation Gillian Martin, Kaplan University, USA ... Psychographic segmentation was developed by marketing researchers to correlate personality with brands. The B2B market is characterized in a number of factors that sets it … Psychographic data are now being operationalized, but we will cover this more under the subheading, “Making Psychographic Segmentation Actionable” below. 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. A subset of lifestyle, activities … Psychological Segmentation also allows marketers to understand the motivation behind a buying decision. Psychographic segmentation can augment this work, informing and strengthening a marketing team’s consumer understanding efforts. 4. Biswajit, R. ( 2017). 3 Psychographic segmentation factors (Hsu, Kang and Wolfe, 2002). Demographics as we discussed earlier are much easier to observe than psychographics, however, psychographics give marketers valuable insights into customers motives, preferences and needs. Lifestyle- The kind of life a person wants to live or is currently living helps in understanding their lifestyle. ... psychographic segmentation groups consumers according to similar behaviors and Attitudes- Along with behavioral segmentation brands! 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