Here’s an example of a real organization we helped with this technique. We used this method to bust assumptions and help them better serve a key customer segment.
The product: our client creates software that automatically calculates sales tax for e-commerce businesses. Companies doing business in the United States are sometimes required to collect sales tax at the point-of-sale, and different states have different tax rates.
The assumption: like most companies, our client segmented their customers based on organizational size (i.e. a demographic criterion), and the marketing team crafted the messaging accordingly.
What they learned through interviews: that they needed to segment based on entirely different criteria!
- Segment #1: mid-size and large companies with in-house accounting departments that kept them in compliance (or had the money to outsource it)
- Segment #2: small companies that did everything on their own
What’s the difference? Small companies knew they could be doing it wrong, and if they messed up, they might end up in jail (i.e. a psychographic criterion). Pretty valuable insight, wouldn’t you say?
With this psychographic data, they were able to adjust their website, product, and messaging to address that concern, and they increased sales based on this segment.