Ohad Shperling, Author at Personalics

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Demographics vs Psychographics

Ohad Shperling — Fri, 20 Mar 2020 12:00:47 +0000

Demographics vs Psychographics

Consumer demographics answer surface-level questions about a company’s customers. It tells who is buying the product and includes information like age, gender, marital status, income level, etc. While this kind of information is important, it is not enough to capture the audience’s attention. Psychographics are much deeper and more insightful. They evaluate consumers’ psychology, lifestyles, and behaviours, and are usually not quantifiable. Why are psychographics so important for effective marketing? Let’s look at an example.

Betty and Sue are both middle-aged mothers, married, with an income of $100k. Both women drink Starbucks coffee every day. You are a local coffee shop wanting to increase traffic. You can determine who to market based on age, gender, marital status, and income of these customers. Without knowing why they buy Starbucks everyday, it may be hard to capture their attention. This is the question psychographics answers—why customers purchase based on their interests, values, beliefs, and more.

Psychographics Wins with More Effective Marketing

Knowing why these women purchase Starbucks helps define the right marketing tactic. Perhaps you find out that Betty gets coffee every morning because she has to drive her kids to school at 6 am and needs a wake-me-up. Sue sits down for coffee with friends before tennis lessons. With this information, you now know why these women value coffee, and more importantly how to capture their attention. To intrigue Betty, you could include images of kids and a tired mother in your advertisement. Or, you might offer her a two-for-one special on espresso shots because she values coffee for the caffeine. For Sue, you might want to brag about your friendly atmosphere and cozy outdoor seating. Or, you could offer her a free drink if she brings in a friend. This is the power and importance of psychographics.

What if you failed to consider the psychographics of consumers and relied only on demographics for marketing campaigns? Well, you might reach a similar group of coffee drinkers, but you would probably fail to spark their interests…because you don’t know them! If you sent both Betty and Sue a two-for-one espresso shot deal, you probably would not attract Sue since she is not seeking the caffeine wake-me-up that Betty is. If you sent photos of your cozy and decorated dining room, Betty wouldn’t care because she gets her coffee to-go.

The Prize: Traffic and Sales

You can see how imperative it is to understand and acknowledge the psychographics of your customers. Using this data, you will no longer waste time sending ineffective messages, using the wrong platform, or offering weak incentives. Instead, you can develop the messages, campaigns, products, and services tailored to specific customers’ wants and needs” (Harvard Business Review 2016). Targeted marketing like this will drive more traffic and more sales.

How You Can Reap the Benefits

This example demonstrates why demographics alone are not enough to develop an effective marketing tactic. Similarities in demographics are not conducive to similarities in lifestyles, values, and beliefs. This data is trickier to find, but the investment is well worth it. Affinio Inc. says “it is critical to connect with the audience on a cultural and emotional level to ensure that the look, feel, and tone of your content fits.” Here are a few steps to follow to collect this information and develop your marketing strategy:

Research your top segments—Narrow in on your top 3-4 segments and define the motives and drivers behind each segment’s purchasing decision. For example, if your product is a soft drink, what are your consumers’ motives? Is it for a special occasion? To accompany their lunch every day? Or to energize after a tough workout? In addition, you can also research each segment’s main barrier. For example, it may contain too much sugar or artificial additives.
Address their motives—Use this information to tailor your content and design to align with the customers’ values. Rather than just aligning your content based on your consumers’ age group, gender, etc., you can now strategically address their motives as well as their barriers.
Expand your audience—You can also use these defined drivers to locate additional growth opportunities beyond your existing demographic segments and ultimately expand your target audience. For example, if your product is a fuel additive for which the purchase motivation is road safety, you may experiment with new segments for which these motives are similar. If these new segments have a barrier which prevented them from consuming your product to date, you can address this issue in your campaign.
Additional tip: use your website data—You can do some analysis of previous customers and purchases with website analytics. This will tell you what content, promotions, or offers have incentivized customers to purchase. Whether it’s new products, a discount, free shipping, or seasonal specials, it’s helpful to know what motivates people to make the purchase.

Following these steps will allow you to uncover your consumers’ psychographics and individualize your content and design strategy. You can target not only age groups, gender, income level etc. but also the reasons and the behavioural patterns behind purchasing decisions. Have you already began using psychographic data in your marketing campaigns? Tell us about the results you have seen!

Written by Laura Swedo, Marketing Intern @ Personalics

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How Persona Marketing Can Amplify Your Brand’s Impact

Ohad Shperling — Mon, 24 Feb 2020 09:42:24 +0000

Persona Marketing

When it comes to marketing, you strive to meet every customer’s wants and needs. As favorable as that would be, it’s not realistic. Enter Persona Marketing: a method of creating comprehensive profiles that describe key segments of your consumer base. By grouping customers into certain “types,” you as a marketer can better understand and relate to your customers. You reveal not only who your customers are but how they act and make decisions. Using a few personas to describe your entire audience, you have enough information to connect with most customers while still maintaining a personal connection (Lee 2018).

The impact of creating and utilizing these personas is content delivered to customers in a more relevant and useful way (Albee 2016). For your business, it means generating awareness, creating effective content, increasing Customer Lifetime Value, and decreasing acquisition costs. Let’s take a closer look at the application of Persona Marketing:

Profiling Each Segment

Persona Marketing helps you better understand your customers’ wants and needs to create the most relevant and effective message. Lauren Sorenson describes it as shopping for a gift for your friend or spouse. “You can easily visualize them in your head as you shop. You can imagine their needs and wants, the things they’d love, the things they’d be interested in, and all the things they hate.” With a persona profile in mind, you begin to understand the customer’s likes, interests, and purchase rationale as if they were a friend. With this information, you have insight into the type of message that will capture their attention.

Choosing the Right Channel

If you profile successfully, you can start to understand how to communicate the message effectively. This means sending your message in the right place at the right time to the right people. If you know that a certain persona spends the majority of its online time on Facebook, you know to use this platform to deliver messages to this segment. Knowing the interests and routines of the persona will help deliver and promote at time which users are likely to be online.

Having the right communication strategy saves time and money. It helps save time by promoting content to the optimal audience on the most effective platforms. This way you won’t waste money promoting on a platform that your customers don’t use. You can also eliminate the futility of trying to connect with customers that rarely or never make a purchase. Instead, you can point your team’s marketing efforts in the right direction by knowing who and what to research (Kuenn 2015). Defining your personas helps build the right communication channel and optimize your efforts.

Prioritizing Personas

This goes hand in hand with your communications strategy. When you understand who your customers are and how to communicate with them, you can prioritize which personas are most important to your business and to achieving your goals. For example, choosing your top 3-4 personas based on their average spending on a given product could help improve your conversion rate. Then, you can tailor your marketing campaigns to attract the most important audience (Winsaur 2017).

Your Brand’s Lasting Impact

With so many brands out there to choose from, you need to make sure yours makes a lasting impact with the customer. Moreover, consumers expect brands to communicate with them in a personalized way. The better you tailor your message, the stronger your impact will be. To do this you must understand your customers’ wants, needs and interests. An efficient way to do this is by creating personas for each segment of your audience, prioritizing according to your strategy, and identifying the relevant communication channels. Persona marketing allows you to know and understand your target audience and thus build a connection and relationship. By focusing on the right audience segment, you help yourself save time, money, and effort and create a lasting impact on your customers.

Sometimes understanding the volume and variety of your personas can be overwhelming. However, once your campaigns are up and running, you have the ability to learn from your consumers’ engagement, and continually improve. If you want to know how this process can be automated, feel free to contact us.

Written by Laura Swedo, Marketing Intern @ Personalics

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The Evolution of Micro-Marketing

Ohad Shperling — Tue, 20 Mar 2018 12:52:58 +0000

Mark Twain once said, “I didn’t have time to write a short letter, so I wrote a long one instead.” This applies to most marketing strategies, whereas much planning is put into keeping messages clear and concise, tailored to the needs and wants of target audiences. But who is your target audience? Who is your brand speaking to? With Micro-Marketing ever more present, how do you analyze and communicate to all of these subgroups?

Traditionally, the market was divided into four categories of geographic segmentation, demographic segmentation, psychographic segmentation and behavioural segmentation. Big groups, sharing mutual traits such as gender, age, income level etc. As time went by, and data became more available, a more detailed segmentation approach was developed, especially with B2B companies and customer intimate firms. One of the most popular tools, Google Analytics, gave marketers the ability to granularly their customers. This deep dive into customer’s subgroups allowed marketers to better understand nuances of needs&wants, meet and communicate them across different channels. Take the following messaging matrix as an example

Message	Customer Segment	Channel
Doritos Blaze are Very Cheap	Students	Facebook ads
Doritos Blaze are Rich in Proteins	Male Athletes, aged 22-26	Instagram Fitness Groups
Doritos Blaze Keeps you Up	Truck Drivers	Road Signs

First, during the segmentation process, marketers evaluate the brand’s biggest customer segments. Second, they target their most relevant audience, based on competition, size and expected growth. Third, they position their products, to appeal to their selected segments, and come up with different messages to communicate their offerings. Finally, they communicate them in the most relevant fashion.

Marketing Process

However, this segmentation level simply doesn’t suffice anymore, to keep up with the market’s expectations. Customers are presuming brands should already be able to speak to them “personally”. This is expected even from companies considered “operationally excellent firms”, who put their efforts on low costs, such as Walmart. And why not? after all, every single action the consumers take is monitored. Every click, every purchase, every post, location and like. A small price we’re apparently willing to pay, just as long (amongst other benefits) that the world around us “knows who we are”. They are right of course, to an extent at least. This expectation is asserted as several marketing automation tools such as browsing triggers (those little ads popping up everywhere showing you something you clicked on), reinforce the consumers perspective of “being followed”. Nevermind those are actually very simple marketing tools, the bottom line is – giving away so much information is met with a feeling of a called for relevance. And in the cruel world of e-commerce, there’s no more tolerance for a sub-par experience. After all, unlike a physical store, everything is just a click away.

This micro-marketing evolution is definitely within reach. The two main difficulties, of course, are making sense in all that data and executing upon it. Just because a certain company has access to its consumers’ clickstream, demographics, location etc, doesn’t mean it’s easy for it to develop insights, to give meaning to all these numbers. In addition, the sheer number and types of segments potentially generated would be overwhelming. Just Imagine a marketing agency having to segment, target, position and communicate thousands and thousands of different messages per brand. A few years back, such a task would sound completely impossible. Nowadays, using the help of data science, this is now possible. Because data science is an interdisciplinary field of scientific methods, such as statistics and computer science, it’s far quicker at extracting knowledge from huge amounts of data. The AI, based on statistical algorithms, automatically finds correlations between different elements of the network. For example, a user who looked at a product a few times is more likely to purchase it, given a coupon meeting a price point is sent. The Machine would also constantly A|B test and improve itself, based on selected KPIs.

They say knowledge is power… However, knowing it all doesn’t quite cut it. Because such knowledge needs to be converted into actions, actionable messages sent in real time to your customers. A great example of personalized execution using the most advanced form of micro-segmentation, “1:1” – is the email channel. Traditionally, email marketers would segment their channel based on the above mentioned, or based on “just subscribed”, “didn’t open their mail in the last 6 months” or “recently purchased”. Though still effective for large-scale campaigns, this technique is hardly suitable for ongoing daily newsletter updates. Big e-commerce companies, such as Groupon, are already executing personalized email campaigns, whereas all the user data is applied in order to generate a personalized experience. Such campaigns focus on showing the user, in addition to products left in the cart or looked at, new products from relevant categories. If the user likes consumer electronics – show him\her the latest gadget etc. These campaigns also try and predict upcoming trends, such as holiday purchase patterns.

This personalisation, this micro-marketing evolution, has a tremendous competitive value. Both in (1) customer lifetime value and in (2) market share growth. For existing customers, the better a brand is capable of microsegment, communicate and meet the needs of their individual customer, the more he or she is likely to develop a sustainable relationship with the brand. The process of micro-segmentation also enables the brand to target more groups, previously ignored, and largely increase the company’s reach.

Written by Itai Eshkar, Head of Personalised Marketing @ Personalics

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3 Tips for Getting your Conversions Right

Ohad Shperling — Wed, 24 Jan 2018 12:07:44 +0000

Everyone’s looking for a “good deal”. But how do you measure it? How do you measure a “good deal”? Is it by net sales? Profits? The traffic it brings to your website?

One common metric or “KPI” is conversion rate. A conversion rate, by definition, is the percentage of users who take action on your website. In our case (e-commerce), it refers to the rate of people who purchased a product. So, if 100 people looked at a couch and one person bought it, the conversion rate is 1 %.

It’s pretty straightforward – when the deal is right, due to price or demand, more people will purchase it. Some products have higher conversion rates than others. Many factors affect this outcome, such as awareness, brand affinity, popularity, price, shipping options, visual appeal, etc.

Generally speaking, conversion rates are used to see which specific deals are doing well (in terms of sales, traffic etc.) and which aren’t; which ones to promote, and which ones to improve or remove from your website. But if you have 100’s, even 1000’s of products on your website, things can get a little trickier.

For example, cheap products tend to have higher conversions than expensive ones. In fact, cups are purchased more frequently than sofas. But from a company standpoint, is selling cups more lucrative than selling sofas? Is the ROI of cups greater than that of sofas?

Take another example – dog treats! Very few people search for dog treats online, but when they do, the conversion rate is likely to be high. Does this make dog treats a “good deal”?

Sometimes, differentiating between a “good” deal and a “bad” deal is difficult. For this reason, we want to give you some practical tips to accurately measure conversations. And with this, you’ll be able to determine which deals need your attention and which don’t.

Keep it Narrow

Not all conversation rates are comparable. Expensive products have a much lower conversion rate than cheaper products. If your website sells both, you need to evaluate which ones drive more sales within the same category.

For example, a home design shop, like Zara Home, sells beds as well as pillows, in which case, pillows are likely to outsell beds with a 10X higher conversion rate. In other words, for every 10 people who buy a pillow, only 1 buys a bed.

To avoid such confusion, or an irrelevant comparison, keep your measurements separated. Measure conversions for both categories separately. Using this approach will inform you of the most popular item, be it a bed or a pillow, in its own specific category. Apples to apples.

Filter the Noise

Get ready, you will encounter a lot of noise when analyzing your top conversion data. Although many of your top-converting deals will appear as “good deals”, they could potentially be a curse in disguise. You want to avoid promoting them to every individual or giving them too much attention.

This can happen. A product may receive very little views, yet generate high % of purchases. For example, this could happen with a non-prescription drug, unique in its category. When people search for a product that has no other alternative, the conversion rate is going to be high. But if you market this product to your entire website user base, expect to be disappointed.

A good way to filter this noise is by limiting your data to a minimum number of views and/or purchases (per deal). Depending on your traffic or sales volume, your data could be filtered as to show only “real” high converting deals. For example: set your filters for minimum 200 views or 4 purchases per deals, in the last week/month. Play around with these figures until the data results make sense to you.

Lookout for Trends

A conversion rate is always relative to a specific time period. Your highest converting deals this week are going to be different from those of the last two weeks and last year. For example, perhaps this week your highest converting deal is a backpack, however, your highest converting deal this year was actually the fidget spinner. The more you widen the time frame, the more likely you are to pick up on “all-time best deals”.

However, the shorter the time frame, the more likely you are to pick up on recent market trends and seasonality. Always remember to keep it fresh whenever preparing your campaigns or newsletters. In order to get a good idea of things, we recommend to look at three different time frames, for example, performance last month, last two weeks, and the last 72 hours. In this manner, you can identify top converting deals and recently trending products.

In addition, picking up on recent trends is an integral part of your customer relationship management marketing strategy (CRM marketing). As you become more aware of your customers’ purchase behaviours, it helps you better cater their needs. For example, on a yearly basis, laptops have a low conversion rate. However, it peaks moderately during mid-August, as students prepare for their autumn semester. Being able to spot this trend allows you to prepare and promote your deals when relevant to your customers, reinforcing your CRM marketing strategy.

As far as conversations go, now you’re a little wiser… So what’s next? How about low converting deals? Should you get rid of them or let them be? Here’s an extra tip, a tool to help you decide what to do next:

Top right, high conversions, high traffic deals. These are your “cash cows”.
Top left, high conversions, low traffic. Consider driving more traffic to these deals.
Bottom Left, low conversions low traffic. No harm done! You can leave them be.
Bottom right, low conversions high traffic. Consider getting rid of…!

This post was written by Itai Eshkar, a Marketing Manager at Personalics

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5 Best-Practices for Boosting your eCommerce Email Open Rates

Ohad Shperling — Thu, 30 Nov 2017 14:50:24 +0000

Hitting that “inbox zero” is a personal goal we can all relate to. But as an eCommerce marketer, it’s a real pain! You send 100,000 emails, and on average, only 16.7% of them get opened.

Forget email open rates; getting your audience to read your content, let alone to click through, and make a purchase, has proven to be more challenging than ever before. Email marketing is a complex process that requires a lot of A/B testing. It’s an art you have to master and perfect over time.

But before you jump three steps too far, let’s focus on getting your readers to open their email in the first place. So without further ado, here are 5 best-practices for writing your eCommerce email headlines and ultimately boosting your open-rates.

Be Relevant.

No matter how affordable or compelling your products are, you’ll never be able to convince someone to purchase an item they don’t want or need. What you CAN do, is tap into their existing buying motivations.

Most users report “scanning” a subject line and “opening” an email only when there’s something “good” in the title. A great tool for keeping your eCommerce email subject lines relevant is Google Trends. Google Trends allows you to compare and visualize the seasonality of products as well as their general popularity according to search trends. It also lets you compare products to each other. For example, you can explore which is a more popular fruit in the UK (and in which season): Apples or Strawberries?

In this manner, you can decide which product name to put in your subject line and when.

However, note that with a static subject line you can never achieve 100% relevancy to all your customers, because you can’t achieve full customer segmentation. The closest you can get to 100% is by creating tailor-made dynamic subject lines, specific to each one of your micro customer segments. These are subject lines that differ from customer to customer, from micro segment to micro segment, within the same campaign. Discover how Personalics can improve the relevancy of your subject lines to boost email open rates by up to 30%.

Add Value.

There’s no real science behind re-marketing – consumers are tired of seeing the same old deals targeting them in every email. In fact, showing the same product more than 3 times instills a sense of antagonism among your audience, which ultimately increases their chances of unsubscribing.

To prevent this from happening, you need a more systematic approach for choosing the right deals to appear in subject lines. The key is to include deals that add value to your customer rather than disappoint them. One approach is showing deals that have a proven history of high conversions. Another approach is sparking curiosity by offering inspiring ideas. Subject lines like “a few home design ideas” tend to be effective and are considered a good practice for improving email open rates. Just remember to follow up with relevant email content \ deals as not to disappoint your customers…!

Keep it Short.

There’s a reason why phone displays limit to the amount of characters your audiences sees – nobody has time to listen to self-promotional messages . Limit your subject lines to about 40-50 characters so that your message is sharp and concise (This is true across all marketing strategies).

Be Human.

Humanising your emails makes the audience feel that there’s a real person at the other end of the line and not a faceless company. One of the most effective ways to humanise your emails is by occasionally using first-person, emotive, and humorous language. Some examples include: “Don’t touch! These deals are too hot” and “Just for You”. This practice may not apply to your everyday “standard” newsletter, but it’s a great way to break your work routine and improve your email open rates.

At Personalics, our machine learning tools are here to augment your human capabilities, giving your emails a competitive edge when communicating with customers.

A Few Don’ts:

When it comes to the subtle nuances of email subject lines, there’s a thin line between “attention grabbing” and “spamming”. So as a general rule: avoid overusing exclamation marks, question marks, emojis, currency symbols, and excessively long text. Don’t get me wrong, it’s fine to use an emoji or a question mark once in awhile, but overtime this may affect your deliverability and reputation.

This post was written by Itai Eshkar, Marketing Campaign Manager at Personalics

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