In advertising, Brands constantly use communication appeals to influence the behavior of their target audience. As the science moves forward, marketing professionals improve their knowledge of the more profound pathways of human mind, and how to hit the right buttons in consumers’ brain to increase the persuasive power of messages.

In the last years, this approach has also been extended to one-to-one marketing, giving Brands the opportunity to hyper-personalize interactions with every single user based on their distinctive traits: values, attitudes, motives, interests, lifestyles and personality traits. In a word, Psychographics.

This methodology has been employed in many sectors, with very different purposes. In the B2C world, to increase customer purchases and conversion rates, in health education, to encourage and support patient behavior change, up to politics, to influence citizens choices.

And it’s just from politics that a question has recently arisen around the methods used by some parties to influence the result of the elections - just remember the controversy that followed the last presidential elections in the United States. In fact, there has emerged an increasingly massive use of data analysis and machine learning techniques to define the best way to convince each citizen of the reasons for one or the other political party.

Our purpose is not to dig into the merits of a story that has already been over-discussed, but to think about the consequences of two big issues that it has brought out. On the one hand, the enormous positive potential of psychographic models to improve the ability of companies to communicate effectively with their customers, taking into account the uniqueness of each person; on the other, how much these tools can be abused without shared deontological principles and rules.

For this reason, in Neosperience we think it has become increasingly urgent to support and promote ethical use of psychographic profiling, through AI tools. Especially in the B2C world, building a culture that directs and controls the application of these methods is now more important than ever, given the essential need of Brands to gain a deep understanding of who their customers are as people as, no longer simply “consumers”, and so be able to deliver increasingly personalized, valuable and useful experiences.

From the suggestion of products and services to the creation of offers, messages, and content, psychographics open up new opportunities for higher-value, human-centered customer experiences, tailored to the needs, tastes, desires and interests of every single user.

Let’s Make an Example

Think of an online fashion retailer selling branded and own-brand products through its website and app. And think of Maria, a new customer. In a typical situation, the retailer would know that Maria is a Millennial, lives in New York and in the last months has bought an evening gown and a pair of dress shoes of the spring collection, spending $ 215. She made her purchases on the website, but yesterday she downloaded the app too, following the invitation of a friend.

Now, the retailer will have to ask: What is the next step to keep Maria involved? With that information the retailer can offer to Maria, on her first access to the app, a special discount on the purchase of a garment easily matchable to those she has already bought - adopting a “content-based” approach. Or, the retailer can suggest to Maria a specific garment that is highly appreciated and frequently chosen by customers who share many similarities with her - using a “collaborative filtering” technique.

Now, imagine that the retailer can also have access to another set of information about Maria. For example, the marketer might find that she is very creative, likes to mix different styles into a single outfit, and prefers variety over the routine of "fashionable" products. He might discover that she is always looking for original and uncommon clothes, with which she can stand out and show her personality.

In possession of this information, the retailer could choose, to be more relevant to Maria, to offer her, at a special price, a garment from the brand new collection that she would be one of the first people to buy. It will not recommend the most popular clothing matches but propose multiple styles that she can mix creatively. Moreover, it will not suggest the most chosen clothes by users “like her” but will offer something new at every access to the website or app, to meet her need to feel unique: an important psychographic trait.

So What?

Psychographics, just like any tool, traditional or innovative, can be used for good or bad. It all depends on how and why they are applied.
Being more interesting and more capable of satisfying the needs of a customer, for a fashion Brand, is a good example of ethical use, especially if the Brand itself aims to meet the customer's needs at best.

On the other hand, a tobacco company, targeting young people who show the personality trait "sensation seeking" - typically related to the propensity to addiction - to increase the economic results, represents for us an example of unethical use, for which Neosperience Cloud platform is not available, by choice of our organization.

Starting from this premise, and then dealing only with use cases that are consistent with our ethical vision, in Neosperience we are convinced that changing the way Brands connect with customers represents the biggest challenge. And that’s because they still lack a profound understanding of “Who” their customers are and, therefore, the ability to think like a customer, as Paul Gillin would say.

This barrier prevents them from offering personalized and memorable experiences, in line with the distinctive traits of each customer and capable of satisfying their deepest needs and emotional inclinations. In short: being truly useful to customers. The companies that continue to behave according to old paradigms fail to face the challenge of creating innovative models to handle seemingly meaningless and heterogeneous data and transform them into valuable insights.

Transparency, ethics and the creation of value for the customer are the fundamental principles that must guide both the creation - for Neosperience - and the use for companies of such a powerful tool as psychographic profiling; a tool that can humanize the relationship between Brands and customers, adding priceless value to every experience.

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A few days ago, while waiting for my turn at the post office, I have witnessed the definitive disappearance of the downtime. Do you remember how boring was to carry out some dull activities only ten years ago?

Well, we have now said goodbye to the idle moments. The smartphone is the key to unlock the potential of those moments when we have nothing to do but waiting and waiting. The queue has never been so exciting.

Mind you, we are not saying that we will not be stuck in the waiting rooms in the next future. The digital disruption has changed a lot but, at least till now, we still have to face the boredom from time to time.

What has changed is the quality of these experiences. The random unattractive magazines stacked on the table of the doctor’s waiting room have given way to the smartphone. Thus, we have the whole world in our hands.

We live in the era of the Micro Moments and no idle moments are allowed anymore. Google has tackled this important matter in a recent article published on Think With Google. The post, titled “How mobile became a power tool in idle moments”, starts from the awareness that:

“The smartphone has become indispensable in getting things done. In our latest research, we found that 75% of people say their smartphones help them to be more productive. But it’s more than that. Productivity has an emotional impact as well. Fifty-four percent of people say their phones reduce stress and/or anxiety in their lives.”

And we all know how stressful it can be to stand in line waiting for a turn that never comes.

“Mobile quickly delivers results when they’re impatient, provides inspiration at their fingertips when they’re curious, and gives them a personalized experience when they’re demanding one.”

Google researchers have identified five typical scenarios when people turn to their phones to fight boredom.

A SPARK

This happens, for example, when something either just pops into your head or you are triggered by something you see.

AN URGENT NEED

This happens, for example, when you suddenly realize that you need something and you don’t know where to get it.

IN-STORE ASSISTANCE

This happens, for example, when you are strolling through the store’s aisles and use the smartphone to look for info, discounts, reviews.

MICRO-PRODUCTIVITY

This happens, for example, when you are stuck somewhere and scroll the list of things to do to move forward.

PLANNING AHEAD

This happens, for example, when you use the phone to plan the next moves in your life, from weekend trips to important purchases.

This is the story from customers’ perspective. What about your Brand? What about your marketing strategy? How can you exploit these micro moments to engage your customers and win their loyalty?

We leave you with a pretty interesting video, highlighting how mobile is impacting the opportunities and challenges for Brand and marketers.

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“Consumers are hugely empowered. There is no room for mediocre” said Keith Weed, Unilever’s Chief Marketing Officer, at the last European Forbes CMO Summit. “We now have the opportunity to understand people on a one-to-one basis – to get down to that individual engagement.”

Marketer's challenge for 2018 and beyond will be to hyper-personalize customer relationships. Which means, creating relevant interactions to capture customers' attention, evoke an emotional connection and secure their loyalty.

The days of one-size-fits-all targeting and seeing ads for things we’ve already purchased are finally coming to an end, as the power of personalization today gives brands a real opportunity to deliver one-to-one experiences at scale. This requires a data-driven approach and, with the massive amounts of data that brands have access to today, the question is: What's more important? What really matters?

Though we are in the Age of the Customer, most of the knowledge in the science of persuasive communication is primarily focused on the "sender", rather than the "receiver". The profile of the "good seller" has been studied a lot, and so the traits and qualities of successful salespeople. For example, they are achievement-oriented, curious, and conscientious. They have a high self-efficacy, are less gregariousness and show a lack of self-consciousness.

We know much less about the characteristics of the recipient, although the real meaning of a message is what the recipient makes of it. How individuals respond to different types of communications, in fact, is strongly linked to their personality.

Think about how much easier it is for salespeople to be effective with a customer that they know personally, compared with a new customer they have never seen before. Well, this kind of knowledge, previously limited to the offline world, today extends also to the digital world.

Let's see some examples.

Extroversion and Introversion

Extrovert people are outgoing, sociable, optimistic, and talkative, while introverts tend to be reserved, quiet, and independent thinkers.

Communication tips

While extroverts respond more positively to online ads that contain persuasive appeals, so that the communication is more free and easy, with introverts you have to prove credibility, for example using objective indicators of excellence. When dealing with an introvert user, you also have to avoid hype and exaggerated information: just get to the point and use high-content samples.

Open-mindedness and Closed-mindedness

Users of the first type are more open to new information, which they evaluate based on what they see or hear. Simply put, they make up their minds based on what you show them. closed-minded users, on the other hand, tend to be more skeptical and less receptive to new information, that they judge as related to what they already know.

Communication tips

With open-minded users, you should highlight the innovativeness, novelty, and customization features of your product. With closed-minded users, it's better to focus on proven effectiveness, and your message must include demonstrations or getting them to take part in product trials.

Need for Cognition and Need for Affect

Need for cognition reflects the extent to which a person is inclined towards effortful cognitive activities, such as information search processes. Need for affect indicates one's motivation to approach or avoid emotion-inducing situations.

Communication tips

It has been demonstrated that people with a high need for affect and a low need for cognition are more attracted by affective-based messages, such the sensory experience of trying a sample of a pleasant-tasting drink. Conversely, a cognitive-based message such as reading a list of strong and positive attributes about the drink is more powerful among individuals who are high in need for cognition and low in need for affect.

Today, with the explosion of customer data that Brands can access from all digital and physical touchpoints, moving from complexity to action requires giving a new meaning to existing data and choosing those that provide the most useful insights.

To win this challenge, Artificial Intelligence with Machine Learning enables marketers to understand their customers better by overcoming obvious factors such as demographics and purchase history and getting psychographic elements from web usage patterns and social profiles. This allows to tailor persuasive appeals and provide targeted recommendations based on users' interests, attitudes, lifestyle, and personality.

How good sellers do when they are familiar with a customer, now Brands have the opportunity to offer hyper-personalized customer engagements and experiences than ever before.

What are the key psychographics to understand your customers better? How would you use them to enhance your personalization strategy?

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Discover MyPsychographics, based on techniques that have been developed and refined over 100 years of cognitive, behavioral and social psychology.

SEO is dead, long live the SEO. Every now and then, the critics of search engine optimization scream their apocalyptic manifesto for a SEO-less world. You don't need optimization anymore, they say, because the engines evolve so quickly that everything you do is immediately obsolete.

Yes, the evolution of technology every year brings developments to the industry, but does this mean that you don't need to optimize anymore? The answer is clearly 'No'. You still need SEO; it's just not the SEO you were used to, as shown in the following infographic.

To quote the words of Neil Patel, New York Times best selling author and co-founder of Crazy Egg and KISSmetrics:

"
The Internet has gone through several iterations over the past 30 years, and while SEO tactics have certainly changed, as long as search engines exist, ranking in them will be important.

New technology may change the way we interact and explore the Internet, but search engines will always be a factor, and optimizing your information for these constantly evolving algorithms will never go out of style.

You probably know where I’m going with this article.

SEO is not dead."

New times require new means, and the new digital and mobile ecosystem requires a whole new approach to SEO. You always have to appeal two different targets - the user and the engine - but both have been deeply disrupted by that tiny (so to say) device called smartphone.

You face a new generation of customers - always connected and willing to receive information in real-time, whenever they are - and a new generation of AI-driven algorithms - they learn from their interactions with the user, and can also process real speech patterns.

Google gets over 100 billion searches a month and handles at least 2 trillion searches per year. 89 percent of customers start the buying process using a search engine. Customer experience management can not do without SEO, and if you think that being there at the right time is not relevant for your Brand, well, think again.

The metrics don't lie: The digital presence is more crucial than ever. And that means that you need to employ all those SEO tricks that will help you improve your strategy in the online and offline worlds.

If you need further proof, check the recent research from Milkwhale, first published on Entrepreneur, in the form of an enlightening, long-sighted infographic (click on the picture to enlarge).

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Conversion optimization is a matter of persuasion. And persuasion is, first of all, a matter of psychology. As you may know, nobody is better than Robert Cialdini in teaching us about persuasion and psychology as a way to understand how customer's mind works.

Not surprisingly, marketers regularly base promotional techniques on Cialdini's principles of social influence to increase the desirability of their products among customers. The choice of what tactics to use, however, is primarily determined by their business goals, while ‘who’ their customers are - from a psychological point of view - is often pushed into the background.

Reciprocity, Commitment and Consistency, Social Proof, Liking, Authority, and Scarcity. These six principles rely on different psychological motives:

• The desire to give something back when we've received something (Reciprocity).
• The need to behave consistently with our previous choices (Commitment and Consistency).
• The tendency to perform actions that reflect other people's actions (Social Proof).
• The tendency to like someone or something that seems similar to us (Liking).
• The tendency to follow the lead of credible, knowledgeable figures (Authority).
• The desire to have more of those things we can have less of (Scarcity).

Each of these principles is related to our inner needs, which make us different one another. As a result, their effectiveness can be stronger or weaker depending on who is the target audience - always from a psychological perspective.

Here are three good examples.

SOCIAL PROOF

People look at what others do to determine their own behavior, especially when they are uncertain or doubtful. Conforming to others, in fact, helps us to feel part of a social group and avoid social faux pas. This kind of "peer power", however, works only with certain types of people.

The ideal customer personality

Social proof is typically more persuasive to people who have a high need for approval and a desire to conform, but it can't work with those who seek uniqueness. Having a high need for uniqueness, in fact, undermines the influence of majority (Imhoff & Erb, 2009). As a result, recommendation techniques such as "people like you bought this" may bother uniqueness-seeking customers while attracting conformity-seekers at the same time.

SCARCITY

People perceive products as more attractive and valuable when their availability is rather limited. So, when they believe that something is in short supply, they want it more. Because valuable things are often scarce, people tend to conclude that scarce things are valuable and more desirable. That is why customers are so attracted by products promoted as being "scarce" (versus abundant), in time or quantity (Cialdini, 1993).

Promotions such as the 'limit one per customer' sales and the 'limited editions' are designed to harness the persuasive power of the scarcity effect. However, as they rely on specific psychological mechanisms, the effectiveness of scarcity changes according to "whom" they are addressed.

The ideal customer personality

Scarcity effect by its nature conveys a feeling of urgency and the belief that you will be missing out on something if you fail to act quickly. A personality trait called "need for closure" refers to one's desire for gaining a definitive answer to a question, thus avoiding uncertainty.

People who are high on this trait feel the urge to come to a quick decision, and scientific research demonstrates that scarcity affects them more compared to people who tend to avoid closure and are more comfortable with ambiguity (Jung & Kellaris 2004). As a result, customers with higher need for closure would be more prone to buy something if they know that it is the very last one or that a special deal will soon expire.

RECIPROCITY

People feel the need to give back to others the form of behaviors, favors or gifts that they have received in the first place. In other words, they want to treat others the same way they have treated them before and, more importantly, be the last to give.

Running a blog that offers highly actionable and useful insights for free; a waiter or waitress that gives you a gift - such as a fortune cookie, or a mint - when bringing your bill; offering a gift incentive upfront rather than at the end of a sale.

All these common-used tactics apply the principle of reciprocity to make your readers more willing to buy something from you or provide you with a conversion and to be more generous tippers. As we all know, however, the feeling of being indebted to others, the sense of gratitude and the desire to repay a kindness, are not equally present in each of us.

The ideal customer personality

Studies have found that such "prosocial" tendencies are strongly rooted in personality and, especially, in individual differences in agreeableness.

Agreeable people are typically more grateful, thankful, and trustful. They are also more likely to attribute their positive outcomes to the intentional behavior of others, while distrustful people tend to be suspicious, skeptical, and address others' kindness to personal or selfish gain. So, agreeable customers are perfect for reciprocity-based engagement techniques.

If you think that customers decisions are just based on past behaviors, you are wrong. They mainly depend on who they are. That is why it is imperative to put effort into knowing the human side of your customers and choose how to communicate with them on a personal level.

In a world where hyper-personalization is an essential factor for success in every business, blending empathy in your marketing strategy becomes the key to meet the challenge. Add technology to the equation, and that is the key to make it scalable.

References:

Cialdini, R. (1993). The psychology of influence. New York: William Morrow & Co.

Imhoff, Roland, Hans-Peter Erb. 2009. What motivates nonconformity? Uniqueness seeking blocks majority influence. Personality and Social Psychology Bulletin 35(3) 309–320.

Jung, J. M., & Kellaris, J. J. (2004). Cross‐national differences in proneness to scarcity effects: The moderating roles of familiarity, uncertainty avoidance, and need for cognitive closure. Psychology & Marketing, 21(9), 739-753.

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Discover MyPsychographics, based on techniques that have been developed and refined over 100 years of cognitive, behavioral and social psychology.

What did you do the last time you had to buy something? Who did you turn to for ideas and inspiration? When was the last time you bought something without looking for opinions or reviews?

The answer to these questions leads us to the fundamental role that mobile technology plays in our daily decisions, from the most important ones to those that we would have once taken without thinking.

In the last two decades, our behaviors have changed so deeply that we hardly remember how life was before the spread of Internet-connected devices. Making decisions was a long, sometimes hard process. Customers were more thoughtful but also less reactive and aware.

Today, on the contrary, customers have all the information they need at their fingertips, readily available on the screen of the smartphone, wherever they are. More than 50% of customers use their smartphones to search for product info and decide what to buy and where to buy.

This simple fact has made them more aware and fast than ever, but also less reflective. The attention span is lower than ever (barely 8 seconds), and this behavioral changes have a huge impact on the way Brands plan and execute their marketing strategies.

According to recent research, 78% of customers searching on mobile for a local business ultimately end up making a purchase. Technology reshapes the 4Ps of traditional marketing, and the experience becomes the primary - if not the only - business differentiator.

The spread of the mobile devices, connected objects, and digital services constantly rewrites the structure of the customer journey. Today, the touchpoints we used to cross only a few years ago have lost relevance, and new ones have emerged - mainly online.

As mentioned by Google in a report about the Micro Moments, in this fast-paced and crowded ecosystem, where customers can buy whatever they want online at a lower price, you can be successful only when:

• You are there - You must show up where and when your customers are ready to choose you.
• You are quick - You do whatever it takes to connect with customers before your competitors.
• You are relevant - You can deliver meaningful contents, when and where it matters most.

“Today’s super-empowered consumers know they can research anything they need or want online. But while people are still searching for specific products, they are increasingly turning to search before they have even figured out what to buy. Ultimately, they are looking for ideas and inspiration.” (Think With Google)

When Google was founded in 1998, on average it was serving ten thousand search queries per day. Today, Google processes over 40 thousand search queries every second on average, which translates to over 3.5 billion searches per day and 1.2 trillion searches per year worldwide.

The disruption of search behaviors is caused by the evolution of technology but, in return, it can also become a vector of innovation. The perfect example is the algorithm of Google’s search engine, more and more ‘inspired’ by what happens on that (not so) tiny device in the hands of customers.

Mobile platforms now account for roughly the 60% of total time spent on digital media, and more than 60% of all traffic on Google search engine comes from mobile devices. These numbers are so relevant that Google has decided to split the engine into two - desktop and mobile - with the latter becoming the most important for your business purposes.

“By understanding how people are searching for ideas, brands have an opportunity to get into their consideration set. Brands can think of all the open-ended discovery moments where someone is totally open to what is out there and make themselves visible and differentiated.” (Google)

Going back to the opening questions, a good exemplification of what has changed in how shoppers find ideas and inspiration can be found in an infographic featured on Think With Google. A necessary starting point to understand how you can adapt and improve your strategy.

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