By: Jim Matorin, SMARTKEING
Proviso: Last year I harped on the value of marketers understanding their target audience either via conventional demographic categorization or digitally mining for brand advocates to implement influence marketing movements. I will also go on record: I stated that marketers are over processing when it comes to consumer targeting. Time flies, summer is just around the corner. I still persist marketers will continue to over process when it comes to consumer targeting. Thanks to the advent of 5G (the next generation of mobile broadband) and the utilization of A.I., we will experience consumer targeting on steroids – psychographic profiling.
A recent survey conducted by eMarketer Retail indicated a small percentage, only 5% of retailers and CPG enterprises are leveraging data in their decision making. Ironic given the survey respondents ranked the importance for better (89%) and faster (79%) insights into customer needs and expectations. Thanks to the expansion of data captured at the numerous consumer technology touch points – transactional purchasing behavior/history, apps, geo-location, etc., smart marketers are in stronger position to make data driven decisions based on enhanced, more effective segmentation. The new wave of segmentation will reflect attitudinal information (e.g., personal interests, life styles, occasion, etc.) layered with traditional demographic buckets (e.g., age, income, education, etc.).
I envision the advent of 5G, the next generation of mobile broadband, combined with the utilization of A.I. will enhance consumer segmentation targeting. 5G connections will deliver greater data capacity (instant computing power) and speed than previous generations – 1,000 the data rate of 4G. Consequently, marketers will be able to utilize psychographic profiling thanks to their ability to crunch data in nanoseconds to identify and engage with their target audience via relevant, real time marketing communications.
My company specializes in the food industry. Detailed below are some examples of future food industry psychographic profiling buckets:
- Lifestyles (e.g., “on-the-go”) – Snacking behavior, convenience foods preferences, beverage consumption.
- Situational Eating Behavior – Location and time of day consumers buy food.
- Health vs. Indulgence – Special diet needs, labeling knowledge, over the top eating experiences.
- Social Values – Make the world a better place – sustainability, responsible biodiversity sourcing.
Does psychographic profiling sound complicated? To a degree, except for those companies that invest in the resources, both technology and trained human capital (analysts). They will eventually develop an integrated segmentation methodology, the combination of key consumer profiling factors that drive their sales. However, given what I have experienced throughout the years, a majority of marketers will over process. Over processing is in their DNA. They will end up compiling mountains of data, conduct endless meetings, even go to length to hire outside resources (e.g., agencies) to help find the magic bullet.
Bottomline: There is no magic bullet. Companies have to seek the marketing formula that works best for them. Execution is a great starting point.