Want to keep learning?

This content is taken from the RMIT University's online course, Online Business: Customer Profiling for Success. Join the course to learn more.
Profile image of a woman's brain
The importance of psychographics

The importance of psychographics

Psychographic characteristics are important because they provide a much narrower and targeted view of the customer or consumer. Psychographics move the business closer to the right customers and consumers who are likely to buy their products and services.

For example, if you were to apply demographics to a population, you might find there are 500,000 people aged between 18 and 24 years. However, when you overlay this with psychographic characteristics such as the potential customers likelihood to be concerned with their health and appearance, their personality being outgoing and adventurous, and their values in relation to spending time with the family being regarded as important, you might discover that the 500,000 people in this age group has dropped dramatically to 150,000 people.

From a profiling perspective this filtering process is regarded as a benefit. You are using psychographics characteristics as a tool to more effectively target who you want to attract to purchase your products or services, increasing your opportunity of converting a potential customer or consumer who is exposed to your product or service to a customer or consumer.

Case Study

Lee, the online homeware store entrepreneur, has identified some demographic characteristics of her customers, including age, location, gender and generation.

She now needs to use psychographics to filter her profile. What are your initial predictions of what the psychographics might uncover about Lee’s customer profile?

Write your predictions in the Comments section and see if any other learners have the same thoughts as you.

Share this article:

This article is from the free online course:

Online Business: Customer Profiling for Success

RMIT University