Psychographics and Firmographics in Big Data IS 682, May 1, 2014 Pouneh Rousta and Scott Sosebee 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 emails get opened most often? Two Different Views targeting 14 million consumers to sell 50,000 units OR 500 sales from every 1,000 people you marketed to Where to Find Psychographic Data? Sales and Customer Service Teams Surveys Social Media Focus Groups or Group Interviews Profiles Posts 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 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 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.). What are Firmographics? 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 Goals of Firmographic Analysis Identify Target Audience Convert Leads to Sales US Businesses 28 Million 6 Million Active US Businesses 1,000 Contacts Dimensions of Firmographics Industry N.A. Industry Classification System (NAICS) Standard Industrial Classification (SIC) NAICS Definition 22 Utilities 23 Construction 31-33 42 Manufacturing Wholesale Trade 44-45 Retail Trade 48-49 Transportation and Warehousing 51 Information Dimensions of Firmographics Location City, state, country continent Metropolitan statistical area (MSA) Location is a natural market segment 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% 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 Dimensions of Firmographics Performance Duration of existence Rate of growth or decline Profits and losses Key indictor Traditional Sources of Firmographic Data Vendors Dunn & Bradstreet, Hoovers.com, Experian, Salesforce Government Census What’s a More Accurate Predictor? Web Form to Access White Paper People Lie 70% of data received by web forms is inaccurate Buyer’s Actual Behavior Browsing habits and Twitter follows are better predictors of awareness and readiness to buy Better Predictor 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 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 Psychographics and Firmographics Hands-on Facebook Ads Demo http://facebook.com/ads/create Questions?