In an ever-changing political, social and online world, it is vital for companies to align themselves to consumer values and lifestyles to be successful.
Consumer segmentation can be a powerful tool to help brands better understand and appeal to their target market. For companies with an initial idea of their target customers, pre-collected consumer survey data can be a useful starting point to quantify the size of target segments, and better understand the difference in consumer thoughts and behaviours.
While the instinct may be to look at industry-focused survey results for this segmentation, a better approach is drawing from a broader survey containing consumer habits and preferences across varying areas of life, to put the target segments in context.
Brands need to understand far more than just how consumers engage with their own product or category, but also to recognise how they fit into consumers’ larger values, lifestyles and habits in order to enable growth and mitigate risks.
There are four core consumer segmentations – geographic, demographic, psychographic and behavioural. To get started with consumer segmentation analysis, brands need to understand what type of consumer segmentation is the best fit.
Source: Euromonitor International
While it is a common approach for companies to stick with geographic and demographic consumer segmentations, it can give a skewed view of consumers’ daily habits and long-term lifestyle choices.
By going beyond these two groups and segmenting consumers based on buying behaviours, lifestyle habits and attitudes, companies can better develop products, marketing campaigns, sales strategies and growth initiatives that resonate with customers on a deeper level.
To help brands better understand their existing and potential customers, Euromonitor International has segmented consumers into 10 types:
• Impulsive Spender
• Minimalist Seeker
• Secure Traditionalist
• Empowered Activist
• Undaunted Striver
• Conservative Homebody
• Inspired Adventurer
• Cautious Planner
• Self-Care Aficionado
• Balanced Optimist
Source: Euromonitor International’s Voice of the Consumer: Lifestyles Survey, 2021
This segmentation is based on psychographic segmentation, profiling distinct personality-driven traits at both a global and country level. Changes in attitudes and habits can be tracked through our Consumer Types series year-on-year, giving valuable insight into consumer wants and needs, even dividing among those in the same demographic or geographic group.
To learn more about our global Consumer Types, download our free whitepaper: Understanding the Path to Purchase: 2021 Global Consumer Types.