Article

13min read

How to Use Psychographics in Digital Marketing

Buyer personas matter. Who can contest that? They bring you tête-à-tête with consumers. You get to know who they are and their preferences, resulting in marketing more efficiently to them. Simply put, you get bang for your buck! A Demand Gen report states that having buyer personas in place contributed to a 175% increase in Thomson Reuters’ revenue, a 10% increase in leads sent to sales, and a 72% reduction in lead conversion time. Incredible, you’d agree!

Want to ape their success? Start by making your customers feel you’re addressing them and them alone. For that to happen though, you’ll need more than demographic data. Simply put, you’ll need to start recording your customer’s psychographics.

What is Psychographics?

It’s the study of a consumer’s not-so-visible characteristics, such as their interests, activities, opinions, lifestyle, and attitude.

Qualitative data is highly valuable. You discover the real motivation behind why people love, as well as advocate for, a few brands. Keeping that in mind, you can alter your messaging to bridge the gap between you and them. You’ll forge a much deeper connection and hear your audience say: “This brand totally gets me!”

Why does this happen though? Because you treat them as individuals with a distinct personality, not as a number. By focusing on their inner drives, their problems and what will actually help them, you become relevant, increasing chances of conversion.

The Key Difference Between Psychographics and Demographics

Unlike psychographics, that concerns itself with the ‘why’ and ‘personal’ aspect of customers, demographics is about ‘who’ this person is, with a focus on quantifiable details like age, gender, ethnicity, employment status, marital status, income, etc.

Both are equally important to refine buyer personas, and when coupled with behavioral stats, can result in a better understanding of your audience.

Difference between psychographics and demographics (1)
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With a bit of ground covered, let’s shift focus to what psychographics deals with.

Types of Psychographics to Keep Your Eye On

Going back to the definition, psychographic profiling is done on what is known as the IAO variables, namely interests, activities, and opinions.

Interests

Interests center on a person’s curiosity about something and what they care about. For example, wildlife, theater, economics, climate change, etc. So target people based on what intrigues and fascinates them. They’ll respond much better to your calls-to-action.

Activities

This includes everything that people busy themselves with, such as gardening, hiking, bird watching, or reading, among a gazillion other things. With that knowledge, you can write content and use vocabulary that resonates with them.

Opinions

People form opinions as a result of their interaction with people around them, their socioeconomic status, personal experiences, etc. Clearly, you’ll need to keep their perspective in mind to influence them in your favor.

How Do You Gather Psychographic Data?

You go where you can find it!

Google Analytics

Click on Audience > Interests. Depending on variables already set as ‘secondary dimensions,’ you will know more about your audience. If not, click ‘add segment’ and track them.

Google Analytics Audience Interests

Surveys and Questionnaires

Asking questions makes you stand out; you come across as a brand that’s concerned about its customers. What’s more, you get suggestions from people who’ve experienced your services/products. Who knows, you might come across common denominators you had no idea existed before. For example, if 10% of your customers follow a certain influencer, you can collaborate with them.

Personal Interviews

Have a conversation with your favorite client and in an effort to ‘get-to-know-them-even-better’, ask questions that’ll help you collect psychographic data. Not possible? Speak to people (from your social circle) who are somewhat ‘similar’ to your target audience.

Social Media Analytics

Head to the audience insights section to discover a wealth of information that people share. From their life events, hobbies, political opinions to interests and pages they like/follow, there’s a lot that can make a world of a difference in your next marketing campaign.

Psychographic data you can gather from Facebook
Some common Facebook Ad targeting options. Source

Additionally, social media listening can tell you how your competitors’ followers feel about them, which you can use to your advantage to differentiate yourself.

Difference between social media listening and social media monitoring
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Sales and Customer Support Teams

Why talk to these teams? For the simple reason that they interact with your customers on an everyday basis. That alone makes them a perfect data source to help you get to know your prospects much better. Dig out the FAQs, the key phrases and words that customers use in reference to your brand or industry. This could be pretty useful in brainstorming ideas for your sales page, for example. Make their words yours.

How to Use Psychographics in Digital Marketing

#1: On Your Website

David Ogilvy famously said: ‘What you say in advertising is more important than how you say it.’ You’ll agree it makes a huge difference in how your audience perceives you. So to hit the nail on the head with your copy, you need to take the words right out of your customers’ mouths!

Joanna Wiebe of Copyhackers dug up reviews of six best-selling rehab and alcohol recovery books while researching how to write website copy for a rehab center. She picked phrases that gave her a peek into the minds of a recovering/recovered addict. This helped her understand their trajectory of thoughts, wants, and pains.

Collecting phrases to mine psychographic data of customers
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She then went on to use one direct quote from a reviewer as the headline. The payoff? 400% more CTA clicks and 20% more lead form submissions. Talk about the power of psychographics! Related: 10 Techniques To Build Lead Capture Forms.

Joanna Wiebe implements psychographic data on website copy
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#2: On Sales Pages

The purpose of a sales page is to convince people to take the offer on the table. But it won’t happen unless you know the actual problems your audience is facing.

Check out the sales copy by the Girl Gone Strong team. They use their target customer’s psychographics to create perfect sales copy. You’ll notice they’ve used the PAS framework. For those who don’t know, it stands for ‘Problem’, ‘Agitate’ and ‘Solution’ and here’s how it’s applied on their page:

Problem: Create a context with video on the first scroll.

Agitate: Go specific, highlighting ‘real’ problems: ‘seeing little to no results’, ‘restrictive dieting’, ‘body image issues’.

Solution: Overcome doubts with the guide created by women for women, backed by the recent finishers of the training program as well as fitness experts.

Psychographic data used on Girl Gone Strong's Sales page
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No matter the industry, you can implement the framework and make your audience’s challenges clear to them. Make them see the negative implication of being stuck in the rut before plugging your solution.

#3: On Your Blog

You know what they say about the benefits of having a business blog? All of it is true.

Today, 47% of buyers view 3-5 pieces of content before engaging with a sales rep. Yes, it’s a zig-zag path, but one that leads inevitably to you. Meaning, if you want them to come knocking on your door, your content must center around their interests.

A perfect example is Neil Patel’s marketing blog. He understands his readers’ psychographics and addresses their burning points in the most simple, conversational and comprehensive manner possible. In fact, there’s content for people at all stages in the funnel, which makes him everyone’s go-to resource. His readers love him:

Psychographic data use success seen on Neil PAtel's blog comments
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You, too, can generate this kind of admiration with your posts. Follow Brian Dean’s Skyscraper technique 2.0 which puts the user right in the center.

  • Figure out user intent: Google the keyword you want to rank on and analyze the content of top-ranking posts.
User intent
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  • Satisfy user intent: Write a long blog post if that’s the pattern you noticed in top results. Indeed, BuzzSumo partnered with Noah Kagan of OKDork.com to analyze 100 million blog posts and found that ‘people are more likely to share longer articles’.
Long blog post appeals to people across different funnel stages
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  • Optimize for UX: Prime your readers for an excellent experience on your blog. It begins with adjusting to the information-foraging audience and making your content skimmable. Nielsen’s research states that 79% of people scan web pages.

Additionally, read comments of your competitor’s top performing content. You’ll get a fair idea about what your audience thinks and worries the most about. Perhaps you will even get new content ideas that people are interested in!

Mining psychographic data from blog comments
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#4: Create Hyper-Targeted Landing Pages

With psychographic data by your side, you can design and write conversion-optimized landing page copy. You’ll no longer rely on guesswork – rather, you’ll be sure of who this person is, and you’ll impress them with your on-point message. If you really hit your mark, you’ll even strike an emotional cord.

Check out the landing page below by TransferWise. With psychographic segmentation in place, they promptly address their customers’ biggest pain point in the headline. Then there’s an interactive calculator for convenience, plus real-time exchange rates for people to track. They also add social proof for reassurance’s sake because this is monetary transaction we’re talking about, after all!

Addressing customer pain points example on TransferWise website
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#5: Write Better Ads

You’ve reached a point where you know psychographics works, so don’t let that data go to waste. Use it to write targeted, appealing ads. However, first, make sure you’re channeling your money and effort where your audience spends time. That way, you’ll be present at the right place and in front of the people who’ll actually ‘get’ and respond to your message.

Let’s say you’re an eco-friendly, sustainable fashion label. You know your audience demographics is females between the ages of 25 and 40 in the US. Now, throw psychographic variables into the mix and your target audience will look like this:

Demographic:

  • Female
  • Age between 25 and 40
  • Single/married
  • Household income $60k-$100k

Psychographic:

  • Interested in environmental issues and climate change
  • Striving for a zero-waste lifestyle
  • Shops from farmer’s markets
  • Follows environmental activists and influencers
  • Volunteers

See what a difference psychographic profiling makes? There’s no way this core audience won’t connect with you and help you achieve your ad (read: brand) goals!

Dummy Facebook Ad targeting Psychographic data

#6: Email Marketing

Understanding the psychographics of your customers plays an important role in building an email list. That’s because the inbox is a sacred space and people won’t subscribe to you unless you promise to send them stuff that really interests them. Perhaps it’s time for you to become that brand people can’t wait to hear from, eh? Remember: The more people on your list, the more conversions you make.

If you already have an incredible list of subscribers, then the challenge is in continuing to stay relevant to them – otherwise, you’ll see many leave. Psychographics can lead the way, telling you your audience’s needs, fears and expectations. This, in turn, will prep you to create highly personalized emails. A report states that marketers who used segmented campaigns noted as much as a 760% increase in revenue.

Personalization stats to consider
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So go back to your past campaigns to learn why the messaging resonated with your audience. Then – repeat it. It’s likely going to lift open rates and engagement. Also, keep up with current trends to boost your email CTRs. Interactive emails, for example, are quite engaging. So think along those lines.

HubSpot follows current trends to appeal to customer psychographics
HubSpot regularly sends interactive quizzes in their emails.

That’ll Be All For Now

Psychographics allows you to get into the head of your customers. And that alone makes it an important piece of data for marketers that want to create passionate brand subscribers. When used in combination with demographics, it opens up a whole new world of possibilities to stay relevant and interesting to your target audience and customers alike.

And while it’s true that mining psychographic insights is hard work, it’s the gains that make the whole process worth it. Once you have your hard-won data, apply it to your website, sales page, landing pages, ads and emails to create an in-sync omnichannel experience for your audience.

Over to you now. How else do you use psychographics?

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Article

11min read

What is Personalization in Digital Marketing?

Personalization is the process of keeping in mind the needs and preferences of your audience so that you market the right product and experience to the right person at the right time. By doing this, you stand a better chance of making customers feel heard, having more meaningful interaction and nudging them to convert.

Some businesses, however, have been unruly and rightly punished for their ignorance or disinterest in their customers. Need proof? Here you go: In 2017, Accenture reported that due to poor personalization and lack of trust, 41% of consumers switched companies, which cost U.S. organizations a staggering $756bn.

Suffice it to say that people demand personalization. Their appetite for personalized products is stronger today – so much so that they’re willing to pay for products unique to them. They also don’t mind sharing personal data in exchange for receiving personalized recommendations and offers.

Stats on customer's preference to receive personalized recommendations
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How Personalization is Different from Customization

It’s quite painful to see people use personalization and customization interchangeably. Yes, it’s true that both keep users at the center and want to engage them with exciting, contextually relevant experiences, but their ways are completely different.

So how are the two not the same?

Personalization, as you know by now, is about creating a one-to-one marketing experience for customers. It begins with collecting ample, qualitative data about your audience. Amazon is a brilliant example of personalization done right, and so are Netflix and YouTube. Recommendations rain down depending on users’ on-site activities.

Here’s Lancôme’s product recommendation engine telling me what else I should consider buying, based on the product I’ve added to my cart:

Powerful product recommendation for personalization - Lancome

Customization, on the contrary, is about giving people the liberty to be able to custom-make a product or service, based on their particular taste. Put simply, it puts them in the center, having complete control over everything they’d like to keep or lose.

For example, Canva, a free online graphs and chart maker, has plenty of customizable templates. Users can make changes in fonts, color, layout etc. and also add/delete elements in an existing design or start from scratch.

Customization option on Canva
Canva houses several customizable templates

In e-commerce, the most commonly used customization technique is product customization. Shoppers feel empowered as they can design their own clothes and accessories, unique to their sense of style. It goes without saying, customizing their own product boosts their satisfaction levels, for the outcome is the fruit of their own labor!

Nike uses customization to great effect, letting shoppers edit the shoe design and even sharing the customized design on their social networks. Of course, flaunting on social media is an additional way to give shoppers’ ego a boost, because someone out their may praise ’em! For Nike, it could translate to more people dropping by their website and buying their products.

Example of customization - Nike
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What is Web Personalization?

Website personalization is the practice of tailoring relevant and unique experiences to every website visitor. It dumps the one size fits all approach and works to make customers feel special.

Extending this definition to our everyday life, there’s a reason why we prefer going to cafés where the staff knows us not only by our face, but our names and mood. There’s nothing greater than that warm, mushy feeling of being recognized!

In marketing though, personalization is more than just addressing customers by their names. Aware of this, according to The SoDA Report, 83% of marketers and C-level executives plan to increase their personalization efforts for 2019, with 32% pointing to a ‘significant budget increase’.

Sounds promising? Hang on, there’s more.

The report further states that of the 67% of global leaders that rate their organizations as ‘Masters’ or ‘Experts’ with robust and advanced levels of personalization capabilities, only 40% are utilizing even the most basic targeting personalization tactics.

Bizarre, but true. Tom Beck, Executive Director at SoDA, says that the reasons for the majority of the organizations are:

Constrained budgets, limitations with their technology platform, and challenges with their data as some of the biggest barriers hindering their progress. It’s also worth noting that more than half of all organizations lack an adequate strategic roadmap and investment plan for their personalization capabilities.

See yourself citing the same issues? Probably the next section will convince you to buckle up and stop finding excuses or reasons to not prioritize your customers’ wants and expectations.

Why Create Personalized Digital Experiences?

Because personalization affects consumers’ perceptions of your brand and also how they shop:

  • 74% of customers feel frustrated when website content is not personalized. (Business 2 Community)
  • Nearly three-fourths (74%) of online consumers get frustrated with websites when content (e.g., offers, ads, promotions) appears that has nothing to do with their interests. (HubSpot)
  • 77% of consumers have chosen, recommended, or paid more for a brand that provides a personalized service or experience. (Forrester)
  • Over 78% of consumers will only engage offers if they have been personalized to their previous engagements with the brand. (Marketo)
  • Personalized home page promotions influenced 85% of consumers to buy while personalized shopping cart recommendations influenced 92% of shoppers online. (Business 2 Community)

What do you say now? Guess I hear you’re more than willing to learn some personalization tactics. So let’s get ready and wrap our heads around how some brands play on human psychology and create some of the most holistic and pleasant website experiences for their customers.

Examples and Strategies to Optimize Personalization

#1 Allure First-Time Visitors With an Exclusive Offer

To start with, I’m going to happily plug one of our client success stories! Best Western® Hotels & Resorts triggered a pop-in to visitors who weren’t logged in to their membership account and were specifically looking for at least a two-night stay, with an offer that was especially for Rewards account holders. And guess what followed? A 12% jump in account creations.

Best western mock up personalization

Meanwhile, here’s another example from the Steve Madden website:

Offer personalized, unique offers for first-time visitors - Steve Madden

#2 Personalized Recommendation During Checkout

Showing products that compliment ‘in-the-basket’ products as well as others that might catch a customer’s fancy works to your advantage. First, because people discover new products, without having to look for them, served on a platter. And second, they feel they’re being attended to exclusively! Final result? Increased average order value. Who’s the winner? You. Of course!

Personalization with the help of recommendation engine on Ebay
Ebay lures shoppers with ‘frequently bought together’ products.

Here’s how Amazon makes recommendations in three different ways by taking into account users’ browsing and shopping history.

Power of Amazons personalization tool (1)

#3  Go for Geo-Location Based Targeting

Identifying your visitor’s location is a great way to serve content they can readily connect with. So redirect them to their country-specific stores. It inspires confidence in you when they read a language familiar to them, plus see content and offers that are geographically more relevant to them.

Let’s say the website visitor is from a country expected to experience winter, you can suggest winter wear. It’s going to keep them interested and prepare them to buy what seems to be a perfect purchase at that moment in time.

Using geolocation for personalization - ASOS
On the Asos website users are redirected to their country-specific stores.

What also cuts down on their anxiety is seeing multi-currency and preferred payment options. Apparently, inMusic decreased cart abandonment by 30% with localized payment processing.

#4 Embrace Interactive Content

With interactive quizzes, you can make shopping a joy by eliminating the paradox of choice. How? Because this format is an online version of the sales fella from a brick-and-mortar store that helps you find what you’re looking for from a mountain of options! But for it to work, you must have compelling copy and equally interesting questions. Much like the charm and gift of gab of the sales chap!

Below is the welcome page of ‘The Original Fit’ quiz. The copy is conversational, there’s data backing their claims and a promise to make the shopping experience pleasant. Now how could you not take this quiz?

Use interactive quiz for better personalization of digital experiences
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If you’re worried about not having enough time to design interactive quizzes, then you’ll be happy to know about platforms like Outgrow, SnapApp and LeadQuizzes. They have templates you can easily customize without knowing how to code.

#5 Lure Customers to Finalize a Purchase With Exit Intent Pop-Ups

So if someone’s been lurking on a particular product page, interested in a product but not quite ready to buy, you can sweeten the deal with a discount on an exit intent pop-up. Perhaps even add a testimonial. Or based on the items in their cart, you can offer them free shipping if they buy in the next couple of hours (think scarcity).

Personalization example - Special offer to reduce cart abandonment

#6 Give Them Ease of Access

From showing a homepage that reflects your customer’s browsing history to making it easy for them to find their past orders and wish list, the key is to keep the user bang in the center. It shortens their path to purchase and increases conversion opportunities. Take a page from Amazon’s book. Everything under one drop down = many problems solved!

Personalization example on dashboard - Amazon (1)

#8 Take Away the Pain to Find Recently Searched for Products

Online shopping is overwhelming. No doubt. People jump from one product to another, unsure if it’s ‘the one’. But while they’re still on your site, for their sake, display previously viewed products. It increases the site engagement time and makes them feel confident about you being on their side, helping keep track of past searches.

E-commerce platforms such as Shopify, WooComerce and others already have created apps that make this possible. So go for it!

Shopify personalization app - Show past viewed products (1)
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Going Forward

People demand you create highly personalized experiences. So it’s safe to say that the time has come to be awesome and become a brand that’s empathetic to its customers’ needs. You’ve already seen how some of your peers are raising the bar. Plus, you’re already in the know about which strings to pull to magically surprise whoever drops by on your website. So you better get going!

The key is to know your audience. Next thing you know, your customer is thanking your for reading their mind! And that’s when you’ll know you’ve arrived!