Let’s explore an example of psychological and behavioural segmentation, through UK supermarkets.
Key lesson: Be loved 😍 or needed 👊
When thinking of supermarkets the prevailing logic is different customer types shop at Waitrose vs Aldi, based on say disposable income.
It’s classic demographic segmentation thinking, which divides the market based on social-economic characteristics (amongst other things).
But, what if I told this was not the case?
Rather at times the same person shops at Waitrose and Aldi, based on psychological and behavioural factors instead.
Desserts from Waitrose cause they are the bomb and everyday items from Aldi cause well, milk and bread is milk and bread!
In our minds we tend to have two dimensions; pleasures and purse-strings.
At times, we have no problem splashing out for special occasions whilst at other times we watch the purse-strings for our purchases. Importantly, this is the same customer and even on the very same day!
Ofcourse, supermarkets know this which is why you see Waitrose value deals and Aldi’s indulgent treats. They are trying to play to the different psychological states of their consumer, as they know they are the same person! Take a look at how Tesco tried to implement a similar technique in their marketing.
The lesson is brands need to fall into two camps; either they are loved or they are needed.
If you fall between these cracks, you risk not having a place in a consumer’s life at all.
To many brands sit in the lukewarm category, neither loved nor needed. These are the first to go.
This applies in all categories and shows the perils of peripheral segmentation approaches. Dig beneath what you can see in order to reveal the real truths about your customers.