If money can buy happiness, you can sell it. That is with personality insights for marketing of course.
Researchers from Cambridge University found that segmenting and targeting consumers based on personality insights benefit customers and 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 personality insights for marketing help.
Researchers from Cambridge University collected data from 77000 UK bank spending transactions of 624 participants. They split the transactions into 59 categories including travel, coffee shops, sports, and eating out. They then gave these spending categories human characteristics and scored them on the Big Five personality traits. The participants completed questionnaires measuring their own Big Five personality traits and their life satisfaction.
They 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, they found matching spending with personality is more important for an individual’s happiness than total income.
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) and matched or mismatched the reward to 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 can be done through personalisation systems which enable the automatic segmentation of customers based on their personality traits. Then you can target ads and campaigns to the different audiences accordingly. For example, match highly agreeable consumers to products which fulfil their desire to help others by offering a charity donation. This is particularly relevant to today’s digital world where consumers are often overwhelmed with choice.
How to put this into practice
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. To get the best chance of a customer buying your product (and being happy because of it) you need to consider their personality traits.
With personality insights for marketing you can deliver ads for products and services that will directly contribute to their happiness. Therefore increase the probability of them associating your brand with happiness and positivity, brand loyalty, and brand evangelism.
Businesses can utilise these personality insights for marketing 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. Create happier customers by tailoring your rewards so that extraverts receive the above offer and introverts receive the reward of a 20% off book voucher. This is likely to result in customers who associate your company with their satisfaction and therefore are more likely to return.
Personality insights for marketing with PROFILE
PROFILE takes thousands of data points from consumers’ digital footprints and generates scores for each of the Big Five personality traits. These are Openness, Conscientiousness, Extraversion, Agreeableness, and Neuroticism derived using psycholinguistics, Bayesian Belief, machine learning, and natural language processing
Personalise your automated processes and create happier customers with the click of a button. Increase customer acquisition, increasing revenue, and improve customer loyalty with PROFILE.