Is It Time to Bring Consumer Data into Health Care. These bases range from age, gender, etc. The advent of social media and data-driven companies like Facebook has made psychographic segmentation practical for companies seeking to execute against these insights. Understanding these emotional or psychographic traits provides key benefits, here are three key ones: All things being equal competitively, providing the practical solution for your prospects, but also connecting with their values, arms you with an important relationship edge. Psychographic segmentation is a market segmentation technique that enables you to categorize audiences and potential customers according to psychological traits that influence their buying habits. Most people do not define themselves by their health condition, so a healthcare provider focusing only on the disease misses the majority of what drives a patient’s actions. (Kotler, Bowen and Makens, 1998). Healthcare Consumerism, Back in 1980, Arnold Mitchell developed VALS(values, attitudes, lifestyles) which became a technique for marke… Separating out the group of people who shop at your store every day andtell their friends about you from the rest of the crowd. Psychographic data are now being operationalized, but we will cover this more under the subheading, “Making Psychographic Segmentation Actionable” below. PatientBond enables our clients to create personalized, digital relationships with healthcare consumers beyond the walls of their facility, meeting patients on their terms when they’re most receptive. Despite several benefits, there are certain drawbacks of psychographic segmentation: 1. These insights factor into patient engagement through both marketing and medical care. Demographics as we discussed earlier are much easier to observe than psychographics, however, psychographics give marketers valuable insights into customers motives, preferences and needs. Understanding the psychology is critical for a business to prosper. Demographic segmentation is the most common type of segmentation strategy, the most conventional, and the most basic. This is directly related to the human psychology or psychographics of a customer. Lifestyle 3. Moreover, until recently, demographic and behavioral data were easier to identify in a population. Attitudes 10. These parameters of psychographic segmentation are also known as AIO- Activities, Interests and Opinions. Market segmentation is important because it helps you to understand different target … Diversity of thought is an important consideration when appealing to a target audience. This article has been researched & authored by the Business Concepts Team. Psychographic Segmentation is rooted more in the field of psychology than conventional segmentation variables of age, income etc. 3. In the simplest of terms, psychographics aid in market segmentation and help you identify your perfectcustomers within the pool of potential customers. Interact with a PatientBond demo. This all these parameters help in breaking down the market by psychographic segmentation, The above image shows the various parameters and variables related to psychographic segmentation. Over their careers at P&G and continuing with our current company, the founders of c2b solutions have extensive experience operationalizing psychographic segmentation to drive meaningful business and medical outcomes. Another innovative company is EdLogics, which uses “gamification” to improve health literacy and incentivize participation in health education. 4. In these cases, psychographic segmentation is extremely critical for a company. In her HBR article, Ms. Samuel points out, “The internet has changed the relative importance of demographics and psychographics to marketers in three key ways: by making psychographics more actionable, by making psychographic differences more important, and by making psychographic insight easier to access.”. Psychographic segmentation can augment this work, informing and strengthening a marketing team’s consumer understanding efforts. Any segmentation is arguably better than no segmentation, but demographic segmentation assumes that everyone in a group defined by physical traits thinks and acts alike, which we know is not the case. Companies make products in order to fulfil the needs and wants of a customer. Harvard Business Review recently published an article titled, “Psychographics Are Just as Important for Marketers as Demographics,” by Alexandra Samuel. 2. Personality traits- This parameter is used to group those people who exhibit similar personality characteristics. Lifestyle segmentation is by far the most common and popular type of psychographic market segmentation companies use. 2. Psychographic segmentation divides buyers into different segments based on internal characteristics — personality, values, beliefs, lifestyle, attitudes, interests, social class — so you can market accordingly Values 5. This is also related to brand personality, where companies try to correlate to the customer’s personality. Psychographic segmentation helps you position the same product differently for different types of people. Along with behavioral segmentation, psychographic segmentation can help completely understand the customer behavior, attitude and personality. Add the font family you wish to use. Interests 4. The B2B market is characterized in a number of factors that sets it … Moreover, this is a disease-centered approach, treating the patient like a “walking health condition.” Patients are obviously more complex than this, with many responsibilities, interests and priorities beyond their health condition in their everyday lives. Personality 6. The health care industry may have been generally slow in adopting psychographic segmentation, but now is the right time to capitalize on it, especially in an environment that is increasingly moving toward consumerism. EdLogics is using psychographic segmentation to attract healthcare consumers to its platform, and while there, 88 percent of participants complete the learning modules, and 90 percent indicate EdLogics’ educational programs answer questions they would have asked their doctor. Social Status- The kind of status that a person enjoys in the society also is a relevant parameters used in this type of segmentation. There is a constant requirement for a customer for buying new products or services, and these wants keep on evolving and changing with age, income etc. Lifestyle- The kind of life a person wants to live or is currently living helps in understanding their lifestyle. PatientBond amplifies engagement with personalized communications at scale, across any population, to motivate and activate patient behaviors. Hence it becomes increasingly difficult to catergorize all customers through psychographic segmentation. The content on MBA Skool has been created for educational & academic purpose only. All rights reserved. Psychographic segmentation is a very important tool used by the marketer in determining the marketing strategy of the product. Demographics, as we discussed earlier, are much easier to observe than psychographics, however, psychographics gives marketers valuable insights into customers motives, preferences and needs. Psychographic segmentation helps identify people based on the way they think & the kind of life they want to live in terms of lifestyle, status etc. Are they school going kids, are they college going teens, are they professionals o… Customer segmentation is a marketing activitythat involves breaking down your customers into a number of groups. The results for our customers: significantly improved market share, health outcomes and patient payment collections. Opinions 9. Many people hypothesized that healthcare consumers would generally begin adopting preventative and wellness behaviors under the ACA, but we have not yet seen this broadly in our model. Loyalty cards allow retailers to track the purchase behaviors of its shoppers to predict future purchase behavior and even incentivize it with coupons and discounts. D) Psychographic Segmentation. A subset of lifestyle, activities … Psychographic segmentation is increasingly important today as consumers group themselves into smaller and smaller interest tribes such as Iron Man athletes, Game of Thrones fans, BBQ smoker cooks, Fortnite players or social justice warriors. Thus, if a company is able to understand the customer’s psychology, there can target them better with the products and services. Psychographic segmentation is one of the four main market segmentation types, working alongside geographic, demographic, and behavioural segmentation to provide more robust consumer profiles which, in turn, allows businesses to better address the wants and needs of specific customers as opposed to a broader market. Ms. Samuel closes off her HBR article with the following statements, with which I couldn’t agree more: “While the internet has made psychographics more important than ever, today’s research, analytics, and ad targeting make it newly possible to turn those psychographics into the foundation of a robust market research and marketing strategy. Psychographic segmentation is very important in marketing and is used extensively by marketers. Creates a more dynamic view of the different types of consumers - The basis of psychographic segmentation lies in the ability to create different groups of buyers. All that said, psychographic segmentation should not necessarily replace good demographic or behavioral segmentation work. */, {% set headerFontFamily = "Helvetica Neue" %} /* This affects only headers on the site. The Commonwealth Fund interviewed me for the publication Quality Matters, in an article titled, “Q&A: Using Market Research to Improve Health Care,” to understand more about our psychographic segmentation model and its application to health care. Consumer segmentation involves grouping people according to shared traits; thus, psychographic segmentation groups people according to shared motivations. You may need to import it above. Ms. Samuel states that, “Marketers are used to thinking and speaking in demographics, since slicing a market up by age, gender, ethnicity and other broad variables can help to understand the differences and commonalities among customers… but psychographics, which measure customers’ attitudes and interests rather than ‘objective’ demographic criteria, can provide deep insight that complements what we learn from demographics.”. In one case involving a rural health system providing care to Medicaid, Hispanic and underserved populations, PatientBond reduced missed appointments by 22%, helping patients get needed care and driving additional revenue of $70,000 per month for this health system. Types of market segments; The segmentation process; ... Psychographic Segmentation. This form of segmentation is advantageous because it helps brand owners engage better with their customers, design more suitable products and improve their marketing in a focused manner. Psychographic segmentation divides a group of customers based on their personality traits, values, interests, attitudes and lifestyles. Based on this segmentation clothing brands target consumers based on which stage of lifestyle they are in. Reference List. However, not everyone who is newly diagnosed reacts the same way to the news or walks lock-step according to the physician’s direction. Lifestyle segmentation helps in understanding people with similar choices, likes, dislikes etc. Psychographic segmentation is extremely essential if a company wants to offer niche or customized products or services to the customer, 3. Hence, one of ways of reaching out to a homogenous group of customers with similar psyche can be done by considering the following variables: 1. This is directly related to the human psychology or psychographics of a customer. These are a key to understanding motivations and why people do what they do. Psychographic segmentation is help in developing consumers’ profiles from psychology side based on lifestyles. Psychographics pertain to people’s values, attitudes, lifestyles and personalities. It also makes it possible to attract a diverse group of customers with the same product without making material changes to it. In psychographic segmentation, customers are divided based on their personality, psyche, Lifestyle, Attitude, Self Image, and other factors. These clusters will form subsets (or segments) of customers based on their: 1. By answering 12 simple questions, a healthcare consumer can be classified as one of five distinct psychographic segments with 91.1% predictability. However, every patient with a certain health condition does not think and act alike, either. The other ways of segmentation are demographic segmentation, behavioral segmentation and geographic segmentation. */, {% set textColor = "#565656" %} /* This sets the universal color of dark text on the site */, {% set boxContainerWidth = "1200px" %} /* 'none' makes your site full width. Population Health News asked me to author an article for the front page of their February publication titled, “Psychographic Segmentation: Innovation in Patient Engagement.” Hospitals and health systems are realizing that a “one size fits all” approach will not work across a population of patients. Companies can better understand the background and reasons for consumers buying products. Granted, patients may share certain externally-defined priorities (e.g., what experts say the patient should be doing) within each stage and behaviors may be similar. With the above example, it’s very easy to understand the importance of customer segmentation. The Importance Of Marketing Segmentation Gillian Martin, Kaplan University, USA ... Psychographic segmentation was developed by marketing researchers to correlate personality with brands. TriHealth has been piloting a successful health coaching program using the model, focused on patients with diabetes and musculoskeletal issues, to build connections with patients and help them achieve their health goals. Social status 7. Since every customer is different, so is their psychology. This segmentation method focuses on the psychology of the customer, which can be focused upon by the company for their marketing activities. Marketing segmentation is an important strategy for developing products and marketing materials targeted towards groups likely to buy your products and services. Segmenting is dividing a group into subgroups according to some set ‘basis’. Why psychographic segmentation is important Market segmentation generally aims to understand consumers’ needs and desires by relating them to demographic, geographic, and psychographic variables. Biswajit, R. ( 2017). Thus, if a company is able to understand the customer’s psychology, there can target them better with the products and services. It involves the evaluation of interest, activities and opinions. This type of research is known as Values And Lifestyles (VALS) Research, and explain customers on the basis of ideals, achievements and self expression. HBR: The Importance of Psychographic Segmentation, Psychographic Segmentation and its Practical Application in Patient Engagement and Behavior Change, Reducing Missed Patient Appointments in a Multi-Speciality, Multi-Clinic Provider Group, Psychographics Are Just as Important for Marketers as Demographics, Psychographic Segmentation: Innovation in Patient Engagement, Q&A: Using Market Research to Improve Health Care. Psychographic segmentation , also known as lifestyle segmentation, is one of the four main segmentation bases used in segmenting consumer markets, with the others being geographic, demographic, behavioral (which is sometimes also split down into benefits segmentation).. As you may have guessed, the word “psychographic” the combination of psychology … There is a constant requirement for a customer for buying new products or services, and these wants keep on evolving and changing with age, income etc. Talk with a PatientBond representative, REQUEST A DEMO Segmentation by lifestyle considers where the customer or client is in their lifecycle and what is important to them at that exact time. That’s important in marketing targeting. Personality traits like social, extrovert, introvert, emotional, imaginative etc are considered, which help companies approach these set of customers in a better way. While psychographic segmentation is commonly used in consumer products companies like P&G, it is a relatively new concept in healthcare. Placing marketing messages in front of consumers based on their interests is now commonplace. Targeting a population with, or at risk for, a disease makes sense, especially when that disease affects so many patients and costs the system significantly. Psychographic segmentation can help healthcare providers gain a deeper understanding of their patients/members by uncovering personality- and attitudinally-driven motivations. Its companion article, “Is It Time to Bring Consumer Data into Health Care?” discusses the application of c2b solutions’ psychographic segmentation model at TriHealth, a major health system in Cincinnati, Ohio. Consumer products companies and retailers would develop personae of psychographic segments and choose a “Prime Prospect” consumer type (typically the most profitable, or high growth potential consumer segment) against which it would focus its mass marketing campaigns. By using psychographic segmentation, brands are able to find the best fits for their audience to … OUR CALLINGPatientBond is the best way to amplify the results for any patient engagement initiative using a unique combination of proprietary healthcare consumer psychographics and digital engagement workflows. The Management Dictionary covers over 2000 business concepts from 6 categories. There are a variety of ways to dive up your customer base (four types of customer segmentation are explained below), but the end goal is the same: to better understand your customer. 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