If money can buy happiness, you can sell it.
Researchers from Cambridge University have provided the first real evidence that personalisation systems, which segment and target consumers based on the Big Five personality traits, could benefit customers and, in turn benefit businesses. After all, a happy customer is a returning customer.
The recent research that has taken the retail world by storm has shown that money can buy happiness. The catch? The products or services bought must match that consumer’s personality. So how can you ensure that you target the right products to the right individuals? This is where PROFILE can help.
With PROFILE, you can not only ensure that you are targeting consumers in the right way (see here), but you can use the personality scores to target them with products and services that will directly contribute to their life satisfaction and happiness. This increases the probability of them associating your brand with happiness and positivity, therefore increasing brand loyalty, brand evangelism and likelihood to return.
Researchers from Cambridge University collected data from 77000 UK bank spending transactions of 624 participants. These transactions were split into 59 categories including, but not limited to, travel, coffee shops, sports, and eating out. These spending categories were then given human characteristics and scored on the Big Five personality traits. The participants also completed questionnaires measuring their own Big Five personality traits and their life satisfaction.
The study found that those who spent more money on purchases that matched their personality were happier and reported higher levels of overall life satisfaction. Perhaps even more significantly, matching spending with personality was more important for an individual’s happiness than their total income and their total spending.
A follow-up experiment directly supports these findings. Researchers randomly allocated either a £7 book voucher (low extraversion activity) or a £7 bar voucher (high extraversion activity) to a group of introverts (people with low extraversion) and a group of extraverts (people with high extraversion) so that the reward either matched or mismatched their personality. They found that participants were significantly happier when the reward matched their own levels of extraversion.
This study provides evidence that can enable retailers to provide more bespoke advice to consumers on what products might contribute to their happiness. This could be done through personalisation systems which enable the automatic segmentation of customers based on their personality traits and target ads and campaigns accordingly. For example, highly agreeable consumers could be matched to products which fulfil their desire to help others by offering the opportunity to donate to charity. This is particularly relevant to today’s digital world where consumers are often overwhelmed with choice.
Where PROFILE can help
As this study has shown, personality is a key component in what makes an individual happy when it comes to spending their hard earned money. If you want to get the best chance of a customer buying your product (and being happy because of it) it is time to consider their personality traits.
PROFILE takes thousands of data points from consumers’ digital footprints and generates scores for each of the Big Five personality traits (Openness, Conscientiousness, Extraversion, Agreeableness, and Neuroticism.) PROFILE does this using psycholinguistics, Bayesian Belief, machine learning, and natural language processing to deliver real-time, easy-to-use scores directly to your business.
Businesses can then utilise these scores to target advertisements, personalise rewards and offers, and create tailored loyalty schemes. For example, if you offer all your customers the reward of 2-for-1 drinks at a pub, this may only appeal to the more extraverted consumers. If you tailor your rewards so that extraverts receive this offer and introverts receive the reward of a 20% off book voucher, this is likely to result in happier customers who associate your company with their satisfaction.
With PROFILE, you can personalise your automated processes and create happier customers with the click of a (social connect) button, ultimately increasing customer acquisition, increasing revenue, and improving customer loyalty.
With PROFILE, you can know what your customers want before they do.