Khaleej Times: Psychographics, not demographics, will drive retail sales

Psychographics not demographics will drive retail in the future. What does that mean?

According to the Google dictionary, psychographics means the study and classification of people according to their attitudes, aspirations and other psychological criteria, especially in market research.
Merriam-Webster defines psychographics as market research or statistics classifying population groups according to psychological variables such as attitudes, values or fears. Wikipedia defines psychographics as the study of personality, values, opinions, attitudes, interests, lifestyles, buyer habits, hobbies, spending habits and values.
Demographics are more ‘dry facts’. Demographics generally refer to gender, age, income, marital status, race, economic status, level of education, income level and employment. Statistical data as it relates to the population and in particular to groups within the population. As defined by Google dictionary.
Psychographics like demographics are best served when sampled from larger samplings. The greater the number of respondents to your surveys, the more likely your psychographics and demographics will be accurate. Both psychographics and demographics are important for retailers to understand how to sell more product.

Social media behaviour
Retailers gain the best sources of psychographics through interviewing current customers and researching website analytics for better understanding customers. Following customers on social media is now a science. How and why purchasers make the decision to purchase is the key information the research is seeking.
Perhaps, certain products are purchased online. Or perhaps bargain hunter customers used a price reduction code when making the purchase. That information enables your psychographic research to focus on certain aspects of your offering. Tailoring your marketing initiatives to the actual experiences which your existing customer base uses will increase sales. The retailer then understands much better what makes the customer tick.
Social media followers provide a wealth of knowledge for retailers. For example, do your customers enjoy Pinterest or Facebook? Are they following action through Twitter or Instagram? Which of these social media formats reaches the majority of your customers? Once you understand this information of the preferred social media programme, the retailer can swing into high gear and pursue the customers.
What is important to your customer on social media? Should your customers look for inspirational quotes, ideas for good nutritional tips, hobby help or blogs? Then the retailer can custom create the retail offering to suit the customer’s deepest desire. The customer, when they purchase, is then able to get the good feelings they want from the retail experience and as a retailer you are able to serve the needs of the customer.
The retail business is all about change. Those retailers and shopping centre owners who believe the status quo will be just fine will be surprised about how fast things change to their detriment.

Fastest first
Today it is not the big that eat the little, instead it is the fastest industry leaders which eat the slow adopters. This certainly holds true in the retail business today.
The people who are doing it are blowing by the ones who say ‘it cannot be done’.
Customers look to value-based transactions, save me time, save me money, increase my productivity, help me make better choices and improve my status. Help me to feel good about the purchase which I have just made.
The use of psychographics is creating new mega trends for the remainder of this decade in retail. People want experiences, not necessarily things. People want constant connectivity and mobility. People want to build their own brand awareness through instant research. People who advance lean in and never by sitting back. People want real time feedback and interaction like social media provides. People want to feel good about the decision to purchase and have gratification in the process of purchasing.
You can do anything you want, but cannot do everything. Starting with a thorough analysis of psychographics just might be the best way to attract and keep your customers.

By David Macadam – Khaleej Times

Link to Article: http://www.khaleejtimes.com/business/retail/psychographics-not-demographics-will-drive-retail-sales