You cannot judge a book by its cover, and similar logic applies to consumer segmentation – you should not rely only on broad demographics to target your audience.
Segmenting your consumers is crucial for effectively targeting the right audience. There are four core ways: demographic, geographic, psychographic, and behavioural segmentation. The latter two – psychographic and behavioural – are especially valuable as they allow you to connect with customers more deeply by focusing on key factors influencing purchasing decisions, such as habits, preferences, and attitudes. We’ve identified seven distinct consumer types to optimise your targeting and campaign effectiveness, each characterised by specific behavioural traits.
Brand Champions
Brand Champions favour branded goods and actively engage with brands. They seek more than just transactional gains; they value emotional loyalty, fostering strong, lasting bonds. Choosing the branded over the generic is also important for them as a status statement. According to the Euromonitor Voice of the Consumer: Lifestyles Survey, fielded January to February 2024, two in three Brand Champions say it is important that other people think they are doing well.
Wellness Enthusiasts
Wellness Enthusiasts proactively pursue products, services, information, and practices that enhance their overall wellbeing. Two thirds research their purchases within food and beverage categories, primarily looking for health and nutritional benefits, all-natural ingredients, and superior taste.
These consumers increasingly perceive physical, mental, and emotional needs as interconnected, necessitating holistic solutions. Pioneering companies such as Nike acknowledge this trend. In 2023, Nike Inc launched its Nike Well Collective platform around five pillars – movement, mindfulness, nutrition, rest, and connection – onboarding over 1,000 fitness trainers, academics, researchers, scientists, and medical experts to cover anything from sleep to reproductive health.
Connected Shoppers
Connected Shoppers often use various forms of technology, mainly digital and electronic devices and social media, to navigate, interact with, and make informed decisions. Online shopping is undoubtedly the domain of Connected Shoppers; four in five consumers say they would be lost without the internet.
Source: Euromonitor Voice of the Consumer: Lifestyles Survey, fielded January to February 2024 (n=40,236)
Nevertheless, Connected Shoppers don’t shy away from in-store shopping and real-world experiences. This presents an opportunity for businesses to adopt a “phygital” strategy, like personalised recommendations of in-store consultants. South Korean internet giant Naver integrated proprietary AI tools within its e-commerce marketplace in 2023, enabling shoppers to get tailored, in-store-like recommendations while they shop online.
Changemakers
Changemakers are purpose-led consumers actively seeking to support businesses aligned with ESG values and principles. These consumers take charge of their choices and firmly communicate their stance, believing that their actions have a meaningful impact on the world.
Changemakers are budget-conscious, with four in five consumers concerned about rising everyday expenses. Still, they prioritise sustainability features like eco-consciousness and all-naturalness. They are also willing to invest more in items known for high quality and health benefits.
Experience Seekers
Experience Seekers prioritise spending on engaging and culturally diverse experiences over material goods. Despite valuing convenience and often spending money to save time, especially on technology, Experience Seekers prioritise real-world experiences.
Travel, technology, and lifestyle businesses cater directly to the needs of Experience Seekers. These industries can effectively engage this selective and informed audience by offering innovative solutions and convenience and utilising cross-sectional marketing options, increasing loyalty and profitability.
Trendsetters
Trendsetters eagerly follow and keep up with the latest trends. They enjoy shopping and are optimistic, impulsive consumers who seek the best, even if it means spending extra. Trendsetters highly value and eagerly embrace change and innovation.
Trendsetters are heavy in-store shoppers, particularly for apparel, beauty products and consumer electronics. Nearly one in three Trendsetters shop in-store to stay updated on new products and trends. Yet, they are also active buyers on social media platforms.
Budgeteers
Budgeteers prioritise financial prudence and cautious spending today to be better off financially tomorrow. Yet, in purchases, the objective is not simply to select the least expensive option but to achieve an optimal balance between cost and value.
Budgeteers search for bargains on high-quality, durable goods but prefer to buy only when necessary. They don’t shy away from repairing and buying second-hand, as this aligns with their strive for affordability and worries about the impact of climate change.
Reach your target audience
Learn more about Global Consumer Types in our report, Understanding Global Consumer Types, to increase conversions or better understand and connect with existing customers.
Editor's Note: This was first published in August 2023 and has been updated