One of the most important aspects of any effective marketing and sales initiative that a company takes part in is understanding the demographics and interests of your customer. However, simply marketing to an age range is a surefire way to have an unsuccessful ad campaign, and is a top 5 reason behind why our customers used to think that "marketing doesn't work". Marketing DOES work! But it's essential to thoroughly understand who you are selling to. Why would your customer buy this? What factors go into your customers yes or no decision to buy this? What are they thinking when they interact with your product? Cue psychographics.
If a business is focused on selling to millennials, one must understand their intrinsic behavior. Most millennials are great at waiting for items to go on sale, an issue that companies have been struggling with in the past few years, and carefully think out their purchases. They are smart with their money and are always looking for that next bargain.
Two-thirds of millennials say they will switch brands if they are offered a discount of 30% or more. (Forbes)
So what does this mean? Offering special deals targeted towards millennial will position your products as an exclusive bargain and appeal to their psychographic tendencies. Not only does this increase your mass brand appeal, but having that discount causes potential millennial customers to be less apprehensive to go through with the purchase. An item price at $70 is much less appealing than an item that is normally $100 but for a limited time is being offered for %30 off.
By understanding the crucial psychographic aspects of customer base, you can make sure that your marketing strategies, such as e-mail outreach and loyalty programs, are tailored for your customers. Surveying customers and paying attention to what types of individuals are buying your products can help add to your knowledge of who your customers are. With simple research, you can develop an effective marketing initiative for YOUR customer.
Ultimately, with the combination of Demographic & Psychographic research you can create marketing campaigns guaranteed to build the strong customer base you need to grow your business.