You cannot judge a book by its cover, and similar logic applies to consumer segmentation - you should not rely only on broad demographics to target your audience.
Segmenting your consumers helps you better understand and reach the right shoppers. There are four core ways to group your audience: demographic, geographic, psychographic and behavioural.
Demographic and geographic are commonly used, but these indicators are often limiting. Why? This information relies on broad generalisations. When grouping consumers by these characteristics, you are assuming that people in the same city or age bracket, for example, share similar needs.
Consumers are complex. People of the same age or who live in the same area often have different values and interests. You could be ignoring true shopping and purchase motivations if you only segment consumers by demographics or geography.
Psychographic and behavioural segmentations help you target your audience based on factors that tend to truly influence buyer decisions, such as their habits, preferences or attitudes. You will be able to connect and appeal to your customers on a deeper level with this approach.
Global consumer types
To help you create effective campaigns, we have defined eight types of consumers with distinct personalities. In our white paper, you will find data and insights into their traits, shopping habits, paths to purchase and the best ways to target these shoppers. Here is a quick look at each.
Minimalist Seekers
Minimalist Seekers focus on the simpler things in life. More than 40% try to lead a minimalist lifestyle and do not buy new items unless necessary. Instead, they try to declutter, repurpose items and reduce waste, which has a positive sustainable impact by proxy.
These consumers tend to have a less-is-more mentality. Minimalist Seekers make intentional shopping decisions, and durability can be an important purchase factor.
Conservative Homebodies
Conservative Homebodies prioritise their relationships and enjoy spending time at home. Family and friends matter most to these consumers.
They are careful spenders, too. Nearly nine out of 10 do not typically make impulse purchases. However, Conservative Homebodies do enjoy the shopping experience and browsing in stores.
Balanced Optimists
Balanced Optimists are confident in themselves and the future. They enjoy the present as well as planning ahead. They want a stable lifestyle - 45% believe that is it important to have a job with a strong work-life balance.
These consumers tend to be pragmatic with their spending. However, Balanced Optimists also prioritise their happiness, which could result in small splurges.
Cautious Planners
Cautious Planners know what they want in life. They are focused on their financial security with 42% believing they will be better off financially in the next five years.
Cautious Planners are rarely swayed by the latest trends and do not feel the need to keep up with new products. Saving money is a high priority for this group.
Impulsive Spenders
Impulsive Spenders appreciate a good bargain. They also tend to spend money on experiences, and more than half are willing to spend money to save time.
A majority of Impulsive Spenders like trying new products and services. These consumers are also active social media users, which is where they tend to find or follow the latest trends.
Empowered Activists
Empowered Activists advocate for social, environmental and political justice. They are active in their local communities and a majority give back to those in need. These consumers want to do everything in their power to effect change. Nearly 80% feel they can make a difference in the world.
They tend to look for sustainable products and want to purchase from brands that share their values.
Undaunted Strivers
Undaunted Strivers want to have and be the best. They care about their reputation and what others think of them. In fact, 95% believe it is important that other people think they are doing well.
These consumers follow the latest trends and want tailored products to suit their needs. They are avid social media users, and a majority believe it is important to cultivate their personal brand online.
Undaunted Strivers tend to have more carefree spending habits than other types and often prefer branded goods to private label products.
Secure Traditionalists
Secure Traditionalists are content with where they are in life. They tend to be set in their ways, which can make it difficult to sway their purchase decisions.
They are frugal shoppers, so discounts and sales can sometimes influence their buying behaviour, especially if an alternative product is less expensive but the same value.
Reach your target audience
Targeting these types can help you increase conversions or better understand and connect with existing customers. When segmenting your audience, make sure you are accounting for the motivations, values, preferences or needs that are driving their purchase decisions.
Acquire full profiles for all eight global consumer types in our white paper. Here, you will gain insight into their personalities and recommendations for targeting each.