Demographics, income and age groups have long been the primary lenses through which companies view their potential buyers. But isn’t this approach outdated? It assumes that people within a certain age range, gender or financial status behave the same way, which is simply not true.
Age doesn’t dictate mindset. A 20-year-old and an 80-year-old can share the same interests, passions and even purchasing behaviors. We change over time and no one has the same buying patterns throughout their life. Taste and habits may shift based on needs, experiences or even exposure to new mindsets. The same goes for when we’re buying different products: our behaviour and shopping patterns may shift depending on what we’re buying. At the same time, income doesn’t equal willingness to buy either. Just because someone has a high income doesn’t mean they’ll spend it on a luxury product. The same goes for people with limited budgets who sometimes make high-end purchases based on perceived value or aspirational factors.
Instead of looking at customers based on static characteristics, we should focus on behavior clusters based on who exhibits similar purchasing habits.
I truly believe this is a far more realistic way of understanding consumers as marketers shouldn't focus on the so-called ‘ideal customer’ but rather bet on effective communication that can influence potential customers outside of preconceived boxes.
For example, you can have John, a gamer who loves all things tech but doesn’t want to spend money every year on new products so he remains loyal to a brand, purchasing only every four to five years. Then there's Helen, a teacher who needs specific tech for work but who also doesn’t want to spend money every year so she buys every four to five years from the same brand. John and Helen have entirely different backgrounds, lifestyles and maybe even motivations, yet they exhibit the same purchasing behavior.
By understanding how different behavioral groups reach a product, you can outline multiple customer journeys, considering how these groups find and ultimately decide to purchase it. Some people rely on social media opinions, others on impulse and some conduct extensive research. Once you get to this stage of understanding those different journeys, you can develop tailored marketing, sales and retention strategies.
Consumer behavior is fluid, and adapting marketing efforts dynamically based on real-time insights will result in better outcomes. Understanding how people buy, rather than who they are, is the key to successful marketing strategies and deeper customer relationships.
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