Psychographics and Firmographics in Big Data IS 682, May 1, 2014 Pouneh 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? What do they like about your product? What do they like about your competitor's product? What made them decide to buy your product? Did they know which brand they were buying before they purchased it? What advertising messages had they seen prior to buying? How much disposable or discretionary income is available for this type of purchase? What are their hobbies? What emotional aspects impact their purchase? What is their social class or status? Who is the actual decision-maker for this type of purchase? What values and attitudes play a part in this type of purchase? Who do they look to when making purchasing decisions? 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 Get on the phone or in a room with a few customers that really represent your buyer persona and find out more about their life. (If it’s face-to-face, don’t forget the coffee and doughnuts. Seriously.) http://blog.hubspot.com/marketing/what-are-psychographics-faqs-ht

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 and that number is doubling every 40 months or so Why psychographics: creates better experience

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 are descriptive attributes of firms that can be used to aggregate individual firms into meaningful market segments.” -Tim J. Smith

Goals of Firmographic Analysis 28 Million Goals of Firmographic Analysis Identify Target Audience Convert Leads to Sales US Businesses 6 Million Active US Businesses 1,000 Contacts

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 Employees 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 Buyer’s Actual Behavior People Lie 70% of data received by web forms is inaccurate 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

Example of an Ideal Buyer Profile 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?

Sources psy·cho·graph·ics [sahy-kuh-graf-iks] Show IPA noun ( used with a singular verb ) the use of demographics to determine the attitudes and tastes of a particular segment of a population, as in marketing studies. http://blog.hubspot.com/marketing/what-are-psychographics-faqs-ht http://en.wikipedia.org/wiki/Psychographic http://money.howstuffworks.com/marketing-plan14.htm http://adzerk.com/blog/2012/05/audience-targeting-101-psychographics http://www.opportunitiesplanet.com/internet-marketing/psychographic-marketing/ http://www.marketingprofs.com/9/how-hyundai-uses-behavioral-segmentation-barr.asp

Videos http://www.youtube.com/watch?v=PEwjl6JhHv4 http://www.experian.com/simmons-research/simmons- oneview-faq.html http://www.youtube.com/watch?v=EVGz5ts39F0 http://mashable.com/2011/06/30/psychographics-marketing/ http://www.youtube.com/watch?v=Sc9EYL8xvFY http://www.youtube.com/watch?v=_rKceOe-Jr0