1. Psychographics and Firmographics in Big Data
IS 682, May 1, 2014
Pouneh Rousta and Scott Sosebee

2. 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 s 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 s get opened most often?

3. Two Different Views
targeting 14 million consumers to sell 50,000 units OR 500 sales from every 1,000 people you marketed to

4. 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.)

5. 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

6. 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

7. 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.).

8. 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

9. 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

10. 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

11. Dimensions of Firmographics
Location
City, state, country continent
Metropolitan statistical area (MSA)
Location is a natural market segment

12. 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%

13. 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

14. Dimensions of Firmographics
Performance
Duration of existence
Rate of growth or decline
Profits and losses
Key indictor

15. Traditional Sources of Firmographic Data
Vendors
Dunn & Bradstreet, Hoovers.com, Experian, Salesforce
Government
Census

16. 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

17. 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

18. 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

19. Psychographics and Firmographics Hands-on
Facebook Ads Demo

20. Questions?

21. 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.

22. Videos http://www.youtube.com/watch?v=PEwjl6JhHv4
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