When it comes to understanding your customers, demographics like age and location have been the go-to metrics for building segments. While this does begin to reveal who your customers are, it doesn’t tell you much about their “why.” That’s where psychographics come in — the study and classification of people according to their attitudes, aspirations and other psychological criteria. It’s an increasingly critical tool for brands and marketers, but we’ve never had a way to gather this type of data and use it at scale. That’s all changing.
Using your existing and real-time customer data, as well as enriched product data, Lily AI’s algorithm creates a unique psychographic profile for each shopper. This profile reveals detailed information about individual customer preferences, and it can even begin to understand how they feel about their body type. This profile can be used across multiple touchpoints in your digital experience. You can market your products more accurately and effectively, and design a more engaging shopping experience.
Here are three ways you can use these psychographic profiles to better connect with your customers.
Hyper-Personalized Product Recommendations
Most modern consumers expect some level of personalization when engaging with their favorite brands online. According to a Deloitte report, 34% don’t feel that standard products and services meet their expectations. So, customizing your digital experience is increasingly a crucial part of operating an e-commerce business.
Lily AI’s psychographic profile allows you to customize which recommended products are displayed across different pages for each shopper — from the homepage to various product pages and more — based on their style personality and preferences. And it’s based on more than broad demographics and past purchases. Because our algorithm reveals detailed data such as what they feel their best features are, your recommendations will be more on target than ever before.
Customized On-Site Search Results
The way we see it, online shoppers fall into two categories: the browsers and the searchers. Your digital experience should cater to both. Where the former may not be sure of what they’re looking for and more willing to navigate various pages as if browsing a rack in your store, the latter knows what they want. They have clear intent and are often looking to purchase a particular type of product.
That makes optimizing on-site search results critical. With a product catalog that’s been enriched by Lily AI’s 15,000-plus attributes as well as detailed psychographic profiles for your customers, your search functionality will deliver more relevant results for each shopper. When Jane from Ohio and Sally from Massachusetts search for jeans, their search results will be personalized to their unique styles.
And the best part is, one good shopping experience makes consumers more likely to shop with you again. And the more you can continue to learn about their style, the more you can connect them with products they love.
Truly Optimized Email Marketing
Tapping into your customers’ psychographics, the why behind their buy, also allows you to personalize your marketing efforts through digital channels outside your website. For example, personalized emails are six times more likely to convert.
How many times have you sent (or received) emails with subject lines like: “[Your Name], You’ll Love This Shirt” or “Ready for Your New Favorite Collection?” Now, you can mean that more than ever by creating tailored recommendations that don’t just rely on a customer’s past purchases, but are driven by their individual “why.”
Broad segments based on basic demographics only provide an on-the-surface view of your customers — you understand their background but not what motivates them to take action. On the other hand, a psychographic profile gives you a more in-depth understanding that leads to happier customers who make more purchases.
Intrigued? Check out our webinar on how understanding the emotional context around your customers’ purchases can be a game-changer.
Lavender Nguyen is a full-time freelance writer for SaaS and e-commerce brands.