Lifestyle segmentation is the use of a values, attitudes, and behaviors to construct a target market segment. While demographics, geography, and other factors are still considered when constructing segments, the use of lifestyle factors has become especially popular as marketers attempt to tap more into the way brands fit into a person’s life experiences.
The following is an overview of some of the lifestyle segmentation benefits and primary reasons that this category of criteria is critical to success in contemporary marketing!
Values and Attitudes Fuel Behavior
In general, companies rely on behavioral data to pinpoint the likely outcomes when targeting particular prospects with specific message strategies. Behaviors offer a more direct perspective on return on investment from advertising relative to insights gleaned from personal trait profiles.
Values and attitudes drive people’s behaviors. Thus, by deconstructing factors that contribute to observed behaviors, you get a better sense of what motivates people to take action. VALS is a commonly used psychographic research tool to prepare a profile of prospects based on their values and lifestyles. It gives marketers deep insights into motives.
Customer Loyalty is More Likely
Among the segmentation strategies, lifestyle is one of the most likely to impact your potential to attract and retain targeted prospects. As people purchase solutions to their problems, they evaluate how well those solutions improve their quality of life. When the assessment is strong and positive, a repeat purchase is likely. Over time, repeat purchases tied to positive emotions lead to loyalty.
Consider someone who buys a high-end kitchen appliance that enables a variety of cooking processes. In this case, the person likely makes the purchase to improve convenience and efficiency rather than to have access to the gadgets and features. By understanding this lifestyle perspective, marketers can much more effectively build campaigns that promote the solution as a way to help a busy professional or homemaker by enhancing convenience and efficiency. Plus, you keep your cupboards less cluttered.
Long-Term Revenue and Profits Rise
By demonstrating a genuine interest in the welfare and lifestyles of your prospects and customers, you have the potential for significant gains in long-term revenue and profits. Customers recognize the benefits of your products to their lifestyles, and your marketing messages more effectively target them through appropriate channels and content.
The more your solutions do to enhance the quality of life of buyers and contribute to positive emotions, the more they want to buy more products and services from your company. You gain add-on sale and cross-sale opportunities. Plus, satisfied, loyal customers typically share lifestyle attitudes and behaviors with friends. They are likely to share the good news about your solutions with those people on the premise that your solutions can help them as well.
Lifestyle segmentation provides a number of important benefits that help your company attract and retain highly-qualified customers and then generate more revenue and profits over time as a result of loyal relationships.