The 8 global consumer types and how to reach them
Increasing sales whilst tightening budgetary expenditure seems paradoxical, but it can be achieved by focussing marketing efforts on your key audiences.
Traditionally, consumers were categorised by demographics, skewing representation of their habits and lifestyle; however, marketers are now releasing that consumer habits and preferences are the most important factors influencing purchasing behaviour.
Evaluating personal attitudes (i.e. media consumption, buying behaviour, individual aspirations); Euromonitor International identified 8 global consumer types in a 2018 study:
Identifying key audience/s, their shopping motivators, major personal influences, habits, and purchase decision drivers when evaluating product innovation, sales and the marketing will enable retailers to maximise sales on a low budget:
The Secure Traditionalist
This consumer segment does not enjoy the shopping experience, as they focus on purchasing essential items, looking for low prices and preferring to save rather than spend. Secure traditionalists rarely make impulse purchases or try new products, avoiding strong branded or premium products. They are set in their ways and difficult to influence. Secure traditionalists conduct the majority of their research and purchases in-store and respond to clearly labelled discounts at the time of selection and purchase, as well as an efficient and convenient shopping experience. Due to this segments low brand loyalty they represent a key audience for new and competitively priced brands and products.
The Empowered Activist
The Empowered Activist feels that they can make a difference and are , despite seeking value for money, willing to pay more for products that support their personal wellbeing and take a stand against global issues. They value quality, durable and eco-friendly products, seeking to reduce their footprint but are also image conscious and place importance on keeping up with the latest trends. This customer segment uses both in-store and online platforms and a seamless service between both platforms, enabling quick shopping decisions and providing an enjoyable shopping experience, drives brand loyalty. Clear product descriptions and labelling will drive sales, as it enables customers to find products suited to their green and eco-friendly lifestyle. Partnerships with well-known green and eco-conscious associations will prove to be a good investment.
The Conservative Homebody
The Conservative Homebody is focussed on personal issues, such as home, family and spirituality and uncomfortable in the spotlights, preferring others to lead. They enjoy shopping, but are not image conscious or materialistic, being careful with spending their money and rarely giving into impulse purchasing. This segment is unlikely to seek well-known brands or premium products, as they stick to essential purchases and only occasionally enjoy trying new products. Despite their growing usage of online and mobile platforms for browsing unique shopping experiences might motivate occasional impulse buys. To reach this segment clearly showcase where money can be saved on essential purchases while providing a unique and memorable shopping experience. Due to their occasional interest in trying new products they are an audience for new-to-market products and private labels.
The Inspired Adventurer
This customer segment likes to try out new things and has big life plans. Inspired Adventurers are future-focused and interested in living abroad or being self-employed. Their large life-goals make them bold and they are cautious with spending looking for quality products and well-known premium brands alongside value for money. They do not place much importance on their appearances or others opinion and are likely to sway between brands and products, willing to try new products and services as long as they contain the same features as their usual purchases. Inspired Adventurers use a combination of online platforms and in-store services to conduct research and make their purchases. Despite slightly favouring online research, allowing them to compare prices, features and review they do most of their purchasing in-store. Retailers should provide a seamless experience between both platforms, price their products competitively and suggest alternative cheaper options to usual purchases to persuade this customer segment. Loyalty reward programs will also increase sales.
The Undaunted Striver
This highly tech-savvy and image conscious segment prefers spending rather than saving and has no concerns about the future. Their main investment is their status and image and they hence often seek branded and premium products despite the price. Undaunted Stivers care about others opinion and stay up-to date with the latest trends. They enthusiastically enjoying trying new products and brands they regularly make impulse purchase decisions. Undaunted Strivers conduct the majority of their research and purchasing online but still frequent stores. Invest in mobile platforms and ensure their efficient and easy use to drive sales. Luxury and strong branded companies with a strong social-media presence and celebrity endorsements are likely to resonate with this segment.
The Cautious Planner
Cautious Planners are very careful with money and rarely make impulse purchases. They are most comfortable with traditional methods of commerce and less likely to use credit cards. They often decide what to buy before going to the store and companies should hence try to reach the Cautious Planner during their research stage as they are unlikely to later deviate from their shopping list. Saving is of high importance to them but not the most important aspect of their decision making. This segment favours tried and tested products, occasionally even willing to pay more for these products. Bulk and multi-pack discounts resonate well with this consumer segment and retailers should analyse the Cautious Planners’ previous purchases to suggest other offers. Focus on providing a seamless online to in-store service.
The Balanced Optimist
The Balanced Optimist values quality over quantity and places great importance on their personal health and well-being. This pragmatic consumer seeks value for spending despite small impulse purchases for friends and family and occasional purchase of string branded and premium products. This customer is very likely to sway between brands and products, looking for competitively priced products. The Balanced Optimist enjoys the shopping experience and still makes the majority of purchase in-store, despite conducting online research. This segment values clear discounts and easy price comparison and online and in-store products features could facilitate a quicker purchasing decision and contribute to an enjoyable experience. Investments in enjoyable shopping experiences will promote impulsive shopping. Balanced Optimists are a target market for new companies and private labels, as long as they are cheaper than name-brand alternatives.
The Impulsive Spender
This customer segment is eager to treat themselves and frequently makes impulsive purchases if they feel they founds a good deal. Impulsive Spenders prefer to live in the present rather than focussing on the future and are not concerned with internet privacy. Despite not enjoying the shopping experience and being cautious with money they are invested in their image and stay up-to date with the latest trends. They highly value well-known and premium branded goods, as well as looking for value for money. Clearly outline bargains and discounts on brands and premium products and facilitate spontaneous behaviour by linking purchasing platforms to social media. Ensure that online, mobile and in-store platforms are easy and quick to use, as this segment conducts research and purchasing online.
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