Psychographics and Firmographics in Big Data

IS 682, May 1, 2014Pouneh Rousta and Scott Sosebee

Demographics to Psychographics

Demographics : Gender, geographic location, marital status, WHO

The year that someone was born will not tell you how likely he is to buy your product.

Psychographics: Activity, interest, opinion (AIOs), attitudes, values, Behavior, WHY, WHAT

What types of offers get downloaded the most? What styles of blog posts get the most interaction? What times do emails get opened most often?

Two Different Views

targeting 14 million consumers to sell 50,000 units OR 500 sales from every 1,000 people you marketed to

Where to Find Psychographic Data?

Sales and Customer Service Teams

Surveys

Social Media

Focus Groups or Group Interviews

Profiles

Posts

Psychographics and Big Data

As of 2012, about 2.5 exabytes of data are created each day

Amazon, GE, and Netflix are using insights from Big Data to deliver better personalization, product recommendations, and enhanced customer experiences

Forbes: Big Data is the biggest game-changing opportunity for marketing and sales since the Internet

How Hyundai used Psychographics?

Assurance program in 2009

“After a purchase or lease from a certified Hyundai dealer and the customer paid his first two payments, a buyer could simply hand back his keys to Hyundai with no negative impact on his credit report (up to $7,500) if he lost his income source.”

14% increase in sales, Fewer than 100 keys of 435,000 vehicles going back to Hyundai

Sources of Psychographics Data

Claritas – MyBestSegments Provides a segmentation system defining every neighborhood in the U.S. by zip code in terms of 66 distinct lifestyle types.

VALS The system identifies current and future opportunities by segmenting the consumer marketplace on the basis of the personality traits that drive consumer behavior.

Consumer Expenditure Survey This Bureau of Labor Statistics program provides information on the buying habits of American consumers, including data on their expenditures, income, and consumer unit characteristics (families, singles, etc.).

What are Firmographics?

Demographics = people

Firmographics = organizations

Used to define a target market for business to business sales

firmographics

“Firmographics are descriptive attributes of firms that

can be used to aggregate individual firms into

meaningful market segments.”-Tim J. Smith

28 Million

6 Million

US Businesses

Active US Businesses

1,000 Contacts

Goals of Firmographic Analysis Identify Target

Audience

Convert Leads to Sales

Dimensions of Firmographics

Industry N.A. Industry Classification

System (NAICS) Standard Industrial

Classification (SIC)

NAICS Definition

22 Utilities

23 Construction

31-33 Manufacturing

42 Wholesale Trade

44-45 Retail Trade

48-49 Transportation and Warehousing

51 Information

Dimensions of Firmographics

Location City, state, country continent Metropolitan statistical area

(MSA) Location is a natural market

segment

Dimensions of Firmographics

Size Revenue Number of employees

# of Employe

es

Size # of Firms

% of Firms

<5 Very Small

3,618,000

61.0%

5-19 Small 1,677,000

28.3%

20-499 Medium 616,700 10.4%

500-4,999

Large 27,570 0.5%

>5,000 Very Large

1,956 0.03%

Dimensions of Firmographics

Status and Structure Relationship of the company

to another Legal status of company

Stand-alone Franchise Subsidiary Limited liability company Private Shareholder Government

Dimensions of Firmographics

Performance Duration of existence Rate of growth or decline Profits and losses

Key indictor

Traditional Sources of Firmographic Data

Vendors Dunn & Bradstreet, Hoovers.com, Experian,

Salesforce

Government Census

What’s a More Accurate Predictor?

Web Form to Access White

Paper People Lie

70% of data received by web forms is inaccurate

Buyer’s Actual Behavior

Browsing habits and Twitter follows are better predictors of awareness and readiness to buy

Better Predictor

Big Data and Firmographics

Expanding Traditional Sources Social Web, psychographics

Predictive Ability Awareness Readiness to buy

Big Data Analytic Tools Natural language processing Data mining

Marketing as a Cost Center Expected to turn leads ready

to buy over to sales

Big Data’s Impact

Lead Scoring Ranking leads based on

sales readiness

Establish an Ideal Buyer Profile Social Score (Awareness)

Takes into account all aspects of a buyers digital footprint

Behavioral Score (Readiness) Web site visits, searches Used to determine if buyers

are ready to purchase

Example of an Ideal Buyer Profile

Interest in cloud computing

Attends Gartner conference

Follows certain industry analysts on Twitter

Has knowledge about VMware and Amazon cloud

Psychographics and Firmographics Hands-on

Facebook Ads Demo

http://facebook.com/ads/create

Questions?