Why Personality-Based Marketing is the Future of ROI Growth
Introduction
Did you know that 95% of decision-making is made subconsciously?
If you are a marketer like myself, you know the challenge of cutting through the noise when marketing a product or service. Consumers are bombarded with generic messages, leading to banner blindness (86% of consumers experience banner blindness), lower engagement rates, and a significant decline in ROI on traditional marketing efforts.
So, what can marketers do to tackle this? Personalization is one buzzword that rushes through the marketing world, meaning you try to understand your customers and deliver messages that resonate with them. You might ask yourself, how am I supposed to understand the vast amount of individuals out there? You indeed heard sayings that every human being is different, but is that true? Well, yes, and no. Of course, everyone has individual experiences, and every life is different. Still, in the end, we are all humans, and we have one thing in common - personality traits with different expressions. We are going into more detail about this further down and also created a detailed article on personality traits, but at its core, decades of research show that 5 big personality traits define us and define how we make decisions and react to certain stimuli. The problem was that historically it was a very complex process to analyze personality traits through lengthy questionnaires. However, AI can now analyse personality based on the written and spoken language in seconds and divide customer segments into similar personality types allowing us marketers to address them in a way that they prefer and understand- this is called personality-based marketing.
In short, personality-based targeting addresses this by enabling us marketers to craft messages that resonate with audience segments' specific motivations, preferences, and emotional triggers. This approach ensures that marketing efforts are seen, felt, and acted upon, leading to higher conversion rates and customer loyalty.
Moreover, the rise of data privacy concerns (92% of Americans have privacy concerns) and the decline of third-party cookies have made it increasingly difficult for marketers to rely on broad demographic and behavioral data alone. Personality-based marketing allows brands to leverage first-party data in a way that respects consumer privacy while still delivering highly personalized experiences.
Definition of Personality-Based Targeting and Marketing
Let us start with the basics and get some wording and understanding right. Personality-based targeting involves using psychological insights to tailor marketing efforts to consumers' personality traits. This approach recognizes that individuals vary in socio-economic status, personalities, values, and attitudes.
On the other hand, personality-based marketing encompasses the practical application of personality-based targeting principles in designing and executing marketing strategies. It involves segmenting target audiences based on personality traits, developing tailored messaging and content, and optimizing marketing channels to reach and engage with different personality profiles effectively.
In the following sections, we will explore the various aspects of personality-based targeting and marketing, including its underlying principles, the science behind it, practical implementation strategies, and the ethical considerations and challenges it presents. Through this exploration, we aim to provide a clear understanding and equip you with the tools and insights needed to leverage it effectively.
Understanding Personality-Based Marketing and Targeting
Definition and Concept of Personality
Personality refers to the unique psychological traits, characteristics, and behaviors that shape an individual's thoughts, feelings, and actions. While traditional demographic factors such as age, gender, and income provide valuable insights into consumer behavior, personality-based targeting focuses on the underlying motivations, values, and preferences.
Our personality includes five dimensions with different expressions - extraversion, agreeableness, conscientiousness, neuroticism, and openness to experience. These dimensions form the basis of various personality models and frameworks used in psychological research, such as the Big Five personality traits model. If you are interested in learning more about the different models of personality, check out the article Customer Psychographics - How Personality Influences Our Purchase Behaviors.
The Role of Personality in Consumer Behavior
Consequently, our personality influences our private life and plays a significant role in shaping individuals' choices when selecting products, brands, and services. While traditional economic theories of consumer behavior focus on rational decision-making based on utility maximization, the latest psychological research suggests the opposite. Let us look at how our personality impacts us.
Motivation and Needs
Personality traits influence individuals' motivations and needs, driving their desires for specific products or experiences. For example, individuals high in extraversion may be motivated by social interactions and seek products that facilitate social engagement, such as trendy clothing or entertainment experiences.
Similarly, individuals high in conscientiousness may prioritize efficiency and reliability in their purchases, preferring well-made and dependable products.
Preferences and Attitudes
Personality traits shape individuals' preferences and attitudes toward brands, products, and marketing messages. Consumers with different personality profiles may have distinct preferences for product features, brand values, and communication styles.
For example, individuals high in openness to experience may be more receptive to innovative and unconventional products. In contrast, those high in agreeableness may prefer brands emphasizing social responsibility and community engagement.
Decision-Making Processes
Personality traits influence the decision-making processes individuals employ when evaluating and selecting products. For instance, individuals high in neuroticism may be more prone to decision-making biases such as loss aversion and risk avoidance, leading them to prefer familiar and low-risk options.
On the other hand, individuals who are highly open to experience may be more willing to take risks and explore new possibilities, leading them to be more adventurous in their purchasing decisions. In addition, personality influences how compulsive an individual is in his buying behavior.
Brand Loyalty and Advocacy
Personality traits also shape individuals' loyalty to brands and their likelihood of advocating for them. Consumers with specific personality profiles may develop stronger emotional connections with brands that align with their values and identities, leading to greater brand loyalty and advocacy. We are going into more detail on the correlation between brand and customer personality here.
Introduction to Psychographics
Personality traits are the most critical part of psychographics, but there is more that makes a big difference. Our personality is fixed when we reach our early 20s. Other factors might change the time of our lives, but they could be extremely powerful to understand when trying to create a personality-based marketing strategy.
Attitudes and Beliefs
Psychographics encompass individuals' attitudes and beliefs about various topics, including brands, products, societal issues, and lifestyle choices.
For example, individuals who value sustainability and environmental responsibility may be more inclined to support brands that prioritize eco-friendly practices and initiatives.
Values and Motivations
Psychographics explore the underlying values and motivations that drive consumer behavior. Marketers can develop messaging and campaigns that appeal to these deeper motivations and aspirations by identifying the core values that resonate with their target audience. If you want to learn more about values, check out the article on the Schwartz Value concept.
For instance, individuals who value personal growth and self-improvement may be drawn to brands that offer products and experiences that help them achieve their goals.
Lifestyles and Interests
Psychographics examine individuals' lifestyles, interests, and hobbies, providing insights into their preferences for activities, entertainment, and leisure pursuits. Marketers can use this information to identify opportunities for product innovation, partnership marketing, and content creation.
For example, individuals with active and health-conscious lifestyles may be receptive to brands that offer fitness-related products, nutritional supplements, or outdoor adventure experiences.
Behavioral Patterns
Psychographics also analyze individuals' behavioral patterns and consumption habits, including purchasing preferences, media consumption, and online activities. This data lets marketers identify critical touchpoints and channels for engaging with their target audience.
Implementing Personality-Based Targeting
In this section, we will explore key strategies and best practices for implementing personality-based targeting, including creating comprehensive buyer personas, collecting and analyzing psychographic data, and incorporating personality insights into marketing strategies.
Creating Comprehensive Buyer Personas
Effective personality-based targeting begins with creating comprehensive buyer personas that encapsulate the target audience's diverse personality traits, preferences, and behaviors.If you want to go into more detail about persona creation, check out the article on creating the perfect persona.
Incorporating Personality Insights into Marketing Strategies
Once marketers gather comprehensive buyer personas and analyze psychographic data, the next step is integrating personality insights into their marketing strategies. Businesses can create highly personalized, effective campaigns by combining personality-based targeting with platform-specific tactics. Here's how to execute this across various platforms:
Targeted Campaigns and Channels
Identify the best channels for reaching each persona by considering their personality traits and behaviors. For instance, content marketing can be highly effective when tailored to persona-centric needs. Create quizzes or polls to allow users to interact with your brand in personalized ways. In paid advertising, custom audience segmentation using psychographic data ensures your ad campaigns reach the right audience, while dynamic ad personalization delivers tailored creative and messaging in real time.
Tailored Messaging and Content
Develop visuals, messaging, and content that speaks directly to each buyer persona's personality traits and values. 80% of marketers believe that creatives are fundamental to marketing success, and for a good reason. If you tailor the ad types and creatives themselves to personality trait segments you will counterattack one of the biggest problems: banner blindness. Extroverts may respond well to bold and engaging messaging, while introverts prefer more nuanced and thoughtful communication. Numerous cases directly show the results what happens when you create ads that resonate with personality traits.
Personalized Offers and Recommendations
Product recommendations can also be based on personality traits and behaviors. This translates to dynamic content recommendations on websites, delivering personalized user experiences based on psychographic profiles. Implement behavioral-triggered emails that re-engage users based on their interactions, making offers and recommendations at the right time and through the proper channels.
Final remarks
After reading this, you might still think it is something out of a science fiction movie, but it is not. We ran various experiments with partner agencies that used buyer personas with psychographic components, and the results were mind-blowing. Have a read yourself here. If you want to learn more or challenge our approach, just contact us!
