4 Steps to Smart Psychographic Segmentation for Conversion Rate Optimization.
What is Psychographic Segmentation? And How it can help your conversion rate optimization?
A plain and simple definition; it is a marketing strategy where you group a target audience or niche market into smaller refined targeted groups of people based on different variables or factors like preferences, lifestyle patterns, personalities, and other different things that form part of a person uniqueness.
Some people call it behavioural segmentation, and the fact is its absolutely important that you take this into consideration for proper conversion rate optimization.
Here´s the HUGE mistake we have been making since the internet started and why conversion rates are not as high as they could be for our businesses.
We are providing the same content to all of our visitors. The same design, the same navigation experience, the same advertising, the same call to actions, etc.
Now let me ask you this, Do you consider yourself to be the same as your next door 12 year old neighbor?
Of course not.
Well, the same applies for your website’s visitors. And BIG websites like Google and Facebook know this.
Otherwise is actually a terrible marketing strategy mistake.
Why do you think Google released their Hummingbird update.
They know that the more personalized the navigation experience of each visitor is, the higher the chances of that person for loving your site will be, and for subscribing to your email list, or becoming a follower, or customer or clicking an ad.
You know Google is all about user experience, so that’s why this will also improve your SEO. It just makes sense; you are taking care of your visitors by providing them with personalized experiences, content etc. But more on SEO and segmentation on a later post.
So this is how you do conversion rate optimization in 4 steps by creating personalized experiences to your visitors and properly perform a psychographic segmentation of your target audience.
1. Define your GENERAL Target Audience.
You need to define your general targeted audience; this is usually people interested in the broad main subject of your website.
For example if you have a website about food and recipes, then your broad general audience will simply be people interested in food and recipes.
The truth is this is part of your strategy and a lot of people don’t do this part right, there’s a thin line between selecting your general targeted audience and going to broad.
2. Have Clear Goals and Steps on Your Website
You need to have a clear vision on what the goals are of your website and what are the steps you want your visitors to take.
Have a clear idea of what your funnel is.
Do you want your visitors to subscribe to an email list? Click an ad? Share your content?
Do you want them to do all of the above but in a certain order?
Maybe you have an email marketing strategy and you know the steps your visitors will take before becoming customers. Good. That’s what I want to hear.
So you have to be clear about what action you want your visitors to take.
3. Refine Your Audience into Targeted Groups (Psychographic Segmentation)
“Divide and Conquer” – Philip II, king of Macedon
This is the most important part of this concept and strategy. Any conversion rate expert will agree that the more targeted your offers and content are for your segmented audience, the higher your conversion rates will be.
You want to refine your audience and create targeted groups based on the segmentation variables covered below, it include things like geographic segmentation, demographic segmentation and other types of segmentation that are very important.
The purpose of this is to segment your content to provide personalized user experiences.
The more refined audience groups you create, the better the user experience will be for your website visitors and the better the chances of those readers/listeners of turning into customers or followers or whatever your marketing goal really is.
To do a proper market segmentation (demographic, psychographic, geographic, etc.) of your target audience to create these “refined groups” you have to consider the following variables:
– Location: What part in the world or in the country are they visiting from? What can you offer that is related to their location and your content so that they feel more related to you.
– Frequency: If they are already followers or customers, you are doing WRONG by treating them as first time visitor or non-customers/subscribers. So you have a few stages, first-timer, second timer Subscriber and customer.
– Preferences: Within your main, broad market, what are the actual preferences of your visitors? What do they really like?
– Behaviour: Think if visitor A is more likely to perform certain action than visitor B. This way you can organize your content so that it benefits these groups.
– Age: Depending on their age, they will enjoy different type of content and they will be more likely some things as opposed to others.
– Gender: Same as with age, consider their gender when creating a refined audience.
– Time: What time in the day are they visiting your website? Their mood and intentions can be revealed by this factor.
– Device: What device they are using can reveal a lot about their personalities and define the type of content that should be delivered to that person.
– Income: A major factor to consider is your visitor’s income and buying power.
– Source of traffic: Depending on where your visitors are coming from in terms of referring websites can determine a lot about what they are looking to learn from you or what problem they are hoping to solve by visiting your website, or be entertained by certain topics.
By combining these and other factors you create your refined audiences. And this way you can provide selected content to each of these groups.
You will want to do some market research and look at your analytics to prioritize your refined audience groups. You don’t want to be shooting blanks.
The more you refine and the more groups you create the higher and better your results will be.
4 simple psychographic segmentation examples
If your targeted niche market or your broad target audience is food and recipe lovers here’s what you would do:
– Sushi lovers visiting from New York City.
– Single men looking for quick and easy recipes visiting from California.
– Moms from the U.K. looking for pasta that are using iPhones.
– (assuming you sale some sort of product) People who have already purchased your product and are coming back to your Blog/Website. You could even do some customer segmentation here.
You can see how the possibilities are endless. But it’s really important that you properly do a segmentation analysis of your website and your audience to really benefit from it in your marketing strategy.
4. Create a Customized Version of Your Website For Each of Your Refined Audience Groups
Don’t make that face!
This is not as crazy as it sounds; I think it actually is the Holy Grail for conversion rate optimization.
Here’s where it gets interesting and fun.
You want to create a different, customized version of your website for each of your refined targeted audience groups.
Well, I don’t want this post to turn into a sales letter at ALL. But the only tool that allows you to do this is Cerebro by Smartduu and as you might have already guessed, I created it.
So far it’s only available for WordPress users but something cool is coming for the rest of the webmasters out there.
I created it because when I came up with this whole strategy and concept for increasing conversion rates by psychographic segmentation there where absolutely no tools or resources that would allow me to do it, I had to hire a super skilled developer in order to achieve this.
So you want to create personalized versions of your website based on 2 things:
1. What is the action you want your visitor to take?
2. Who is your visitor (refined audience)?
Then assuming you have the following set of goals/steps for your sales funnel:
1. Visitor comes to your website and subscribe to your email list
2. Visitor reads your emails and becomes a fan
3. Visitor/Subscriber becomes a customer
And following the food website psychographic examples, here is a really simplified sample of how someone could create a different version of their site for the selected refined groups:
– Version 1 – Sushi lovers visiting from New York City: Your website features a lot of Sushi related posts, and since you want your visitor to become a subscriber, you offer a report: List of Top 10 Sushi Restaurants in New York City if they subscribe.
– Version 2 – Single men looking for quick and easy recipes visiting from California: Same concept as above, provide a version of your website all around single men that want to cook and that live in California; consider posts, paragraphs, images, email subscription forms, ads, etc.
– Version 3 – Moms from the U.K. looking for pasta that are using iPhones: Same as above but this time you can take in consideration that they are using an iPhone, so you might want to suggest a cooking IOS app. Imagine how grateful they would be.
– Version 4 – People who have already purchased your product and are coming back to your Blog/Website: These people are already customers, why the heck are you still showing them sign up forms and promotions about something they already bought? These are your pals, your VIPs, you should provide a version of your website that shows your gratefulness to them for being a customer, perhaps offer “freemiums”, special discounts, different products, be considerate and provide a much cleaner version of your website.
I don’t want to overwhelm you with this concept on psychographic segmentation anymore, so I’ll cut it here. But you see the power it has on conversion rate optimization.
I hope you enjoyed my pretty unique strategy for increasing your conversion rates.
Do you have any suggestion for what versions of your website you would create? Share them below