Big Ideas Topic: For decades, demographic information (age, gender, location) has been hailed as the Holy Grail of audience identification and more recently, psychographic data (interests, attitudes, opinions, and lifestyles) has emerged as the ultimate barometer for success. Now Forrester Research has elevated the concept of technographics as the latest “must know” ingredient for digital audience targeting.
At Issue: Million dollar decisions are based on demographic and psychographic data daily with proven results. Why do you need technographic insight?
Big Ideas View: It is mission critical that you know your audience’s technographics; defined as their different habits, feelings about and uses of digital media – specifically the Internet and its untethered arm, the mobile phone. The key to growing your business lies in knowing your customers. Customers of all stripes are spending more time on-line. Even FaceBook’s largest growing audience is women 55+. Different user groups consume digital media in different ways, so you must know which specific digital elements and channels are used and appreciated by your specific consumers.
The term “technographics” was coined in 1985 by a Dr. Edward Forrest in a study of the habits of VCR users, however, it is Forrester Research who has elevated the term to a standard based on their 2008 tracking across the explosion of digital media. This segmented data is now available to marketers, IT professionals and business strategists in easy to digest tables. They offer reports and webinars for a price. We recommend you can buy the book Groundswell by authors Charlene Li and Josh Bernoff and get some data free from the Groundswell blog.
How do technographics change the way you do business? First, understand that your “on-line presence” encompasses more than just your primary website when your brand communicates in the cyberworld. Knowing the technographic profile of your customer (also referred to as “Social Technographics, or “Consumer Technographics”) will shape your strategies. Forward thinking businesses are reshaping digital strategies now based this data. What types of social media should you embrace (or should you)? Should you blog? Use forums? RSS feeds? Exclusive images, videos? Polls, Reviews, Contests? Subscription clubs? How vital is mobile? Analysis of your audience technographics will indicate if your target group is comprised of (using Groundswell terms) Creators, Spectators, Critics, Collectors, Joiners, a combination of two or all of the above. The answer will indicate which tools provide the most promise.
Forrester is not the only game in town for analyzing on-line habits. You can learn a great deal about consumer entertainment media trends with BigChampagne, or try the NPD Group if you want a more retail oriented view. Pew Research (nonprofit), Nielsen Online (some free and some paid), MarketResearch.com, and many others are analyzing habits on-line and a growing number of firms are looking at mobile Internet activity patterns by groups. However, when it comes to profiling customers and their use of technology in order to use these market segments for your strategic planning, Forrester has certainly given us some “swell” tools.
Success is achieved by using a mix of key variables from each data set (demographic, psychographic and technographic) as you identify your core customer and apply your resources to conversing with them. You use demographics and psychographics to determine the technographics. Without knowing your customer’s technographics, you may invest resources and dollars in a strategic direction that does not meet the needs of your customer and therefore, your brand. One thing is sure, even as the economy has slipped digital activity is evolving and there is little time or room for misdirection. Is that graphic enough for you?
[Reprint of our monthly newsletter, The Big Ideas Report, from The Gales Network. Published 3/13/09 at www.galesnetwork.com]