As it provides details about factors such as lifestyles, interests, opinions, etc., it is much more … I have known some healthcare companies (especially in the pharmaceuticals space) that segment patients with diabetes according to stage or treatment: pre-diabetes; newly diagnosed Type 2 diabetes; ongoing management of diabetes; advanced diabetes, etc. Personality 6. 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. The importance of market segmentation. It prevents you from falling into the trap of one size fits all marketing. The technology did not exist for efficient one-to-one marketing based on an individual consumer’s psychographic profile. However, every patient with a certain health condition does not think and act alike, either. This is also related to brand personality, where companies try to correlate to the customer’s personality. Add the font family you wish to use. Psychographic segmentation has been used in marketing research as a form of market segmentation which divides consumers into sub-groups based on shared psychological characteristics, including subconscious or conscious beliefs, motivations, and priorities to explain and predict consumer behavior. Take diabetes, for example. PatientBond addresses important things like medication adherence, health education, appointment reminders, ER visit reduction and hospital readmissions. Another innovative company is EdLogics, which uses “gamification” to improve health literacy and incentivize participation in health education. That’s important in marketing targeting. Consumer segmentation involves grouping people according to shared traits; thus, psychographic segmentation groups people according to shared motivations. Healthcare organizations, such as hospitals, health systems and insurance companies, have long segmented patients/members according to health conditions and utilization patterns, in addition to demographics. */, {% set pageCenter = "1400px" %} /* This sets the width of the website */, {% set headerType = "static" %} /* To make this a fixed header, change the value to "fixed" - otherwise, set it to "static" */, {% set lightGreyColor = "#f7f7f7" %} /* This affects all grey background sections */, {% set baseFontWeight = "300" %} /* More than likely, you will use one of these values (higher = bolder): 300, 400, 700, 900 */, {% set headerFontWeight = "300" %} /* For Headers; More than likely, you will use one of these values (higher = bolder): 300, 400, 700, 900 */, {% set buttonRadius = '2px' %} /* "2px" for square edges, "10px" for rounded edges, "40px" for pill shape; This will change all buttons */, Delivering the BestPatient Engagement Results. Reference List. To put it simply, psychographic segmentation is a method used by marketers to find the best customers for their products based on the customers’ interests, needs, and behavior. Companies can better understand the background and reasons for consumers buying products. 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. You may need to import it above. Thus, if a company is able to understand the customer’s psychology, there can target them better with the products and services. Personality traits- This parameter is used to group those people who exhibit similar personality characteristics. 2. */, {% set headerFontFamily = "Helvetica Neue" %} /* This affects only headers on the site. Since it gives more insight about the customer, this segmentation is better than simply using demographic or geographic segmentation, 4. It has been reviewed & published by the MBA Skool Team. Demographics as we discussed earlier are much easier to observe than psychographics, however, psychographics give marketers valuable insights into customers motives, preferences and needs. 2. Personality traits like social, extrovert, introvert, emotional, imaginative etc are considered, which help companies approach these set of customers in a better way. This type of customer segmentation bases the groupings according to certain statistical data about the characteristics of populations, including the variables discussed in detail below: age, gender, household size, marital status, income, education level, occupation, and ethnicity. 5. Also, reducing weight and maintaining a healthy lifestyle are his top most concerns. Thus, if a company is able to understand the customer’s psychology, there can target them better with the products and services. to psychographic factors like attitude, interest, values, etc. 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. 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. These are a key to understanding motivations and why people do what they do. This is directly related to the human psychology or psychographics of a customer. In psychographic segmentation, customers are divided based on their personality, psyche, Lifestyle, Attitude, Self Image, and other factors. Psychographic segmentation involves dividing a market into segments based upon different personality traits, values, attitudes, interests, and lifestyles of consumers. Social Status- The kind of status that a person enjoys in the society also is a relevant parameters used in this type of segmentation. The content on MBA Skool has been created for educational & academic purpose only. Customer segmentation is a marketing activitythat involves breaking down your customers into a number of groups. 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 … (Kotler, Bowen and Makens, 1998). Ms. Samuel uses examples that may be familiar to many marketing teams: “Our target audience is 14-34 years olds” or “We are launching a campaign aimed at urban Latinos.” While the groups may share common cultural and situational context, it is safe to assume these two groups are not made up of people who all have the same personality, priorities or motivations. Companies make products in order to fulfil the needs and wants of a customer. Values and Attitudes- Along with lifestyle, values and attitude of people also help in identifying the right set of customers. 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. With the above example, it’s very easy to understand the importance of customer segmentation. Those traits are drawn from an individual’s lifestyle and preferences. 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. These clusters will form subsets (or segments) of customers based on their: 1. Segmentation by lifestyle considers where the customer or client is in their lifecycle and what is important to them at that exact time. Psychographic variables are mainly used when the consumer purchase behavior is related to the attitude or lifestyle of the consumer. C2B Archive, CONTACT US Moreover, until recently, demographic and behavioral data were easier to identify in a population. 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. Psychographic segmentation can be conducted using a variety of methods that include profiling likely participants, web and field-based customer service applications, scraping data from various user platforms and social media, pricing/value and price sensitivity studies, surveying and interviewing customers, creating online communities of customers, focus groups, supply-chain … 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. Lifestyle- The kind of life a person wants to live or is currently living helps in understanding their lifestyle. The advent of social media and data-driven companies like Facebook has made psychographic segmentation practical for companies seeking to execute against these insights. Terri Hanlon, COO of TriHealth’s corporate health program, said, “We all want to do the right thing, but to provide patient-centered care we need to make an effort to understand what motivates patients.”. Psychographics go deeper to uncover the why, and if one knows the why, one can customize messaging and media according to consumers’ communication preferences and appeal to their motivations. 3 Psychographic segmentation factors Demographic segmentation is the most common type of segmentation strategy, the most conventional, and the most basic. Harvard Business Review recently published an article titled, “Psychographics Are Just as Important for Marketers as Demographics,” by Alexandra Samuel. These bases range from age, gender, etc. 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 divides a group of customers based on their personality traits, values, interests, attitudes and lifestyles. 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. However, not everyone who is newly diagnosed reacts the same way to the news or walks lock-step according to the physician’s direction. 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. Social status 7. However, this method of consumer understanding is gaining attention as a way to augment current marketing and care efforts. 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. Psychographics pertain to people’s values, attitudes, lifestyles and personalities. By using psychographic segmentation, brands are able to find the best fits for their audience to … Consider a rich businessman who wants to lead a healthy lifestyle but doesn’t find the time to and wants to reduce his excessive weight. These parameters of psychographic segmentation are also known as AIO- Activities, Interests and Opinions. In the simplest of terms, psychographics aid in market segmentation and help you identify your perfectcustomers within the pool of potential customers. 2. 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. These insights factor into patient engagement through both marketing and medical care. It also makes it possible to attract a diverse group of customers with the same product without making material changes to it. PatientBond amplifies engagement with personalized communications at scale, across any population, to motivate and activate patient behaviors. Based on this segmentation clothing brands target consumers based on which stage of lifestyle they are in. 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