Demographics alone don’t cut it: Euromonitor reveals eight essential consumer traits8 Sep 2022
Is your target consumer a cautious planner, impulsive spender, or minimalist seeker? Euromonitor has identified eight consumer types that businesses – including food operators – should know about.
When it comes to understanding shopping behaviour and purchase decisions, consumer demographic data is just the start, says Euromonitor. We look at its eight ‘consumer types’ that businesses must prioritise to better understand its audience – and reach new ones.
The firm’s 2022 Global Consumer Types report focuses on eight consumer types that businesses should prioritise this year, says Euromonitor – noting that several habits and values are consistent with consumer types from previous years.
“Our annual series tracks behavioural patterns over time so you can see how preferences evolve,” the report notes. “We build comprehensive and granular personas to help you make distinctions between consumers—even within the same demographic group.”
“Targeting these types can help you increase conversions or better understand and reach existing customers. Traits, values and buying behaviours should play a role in your segmentation. Demographics alone won’t cut it.”
Why segment consumers by type?
The report notes that better consumer segmentation can help drive innovation and meet emerging demands, in addition to helping to understand purchase drivers, position and price products competitively, customise buying journeys, increase conversions, reach new audiences, and strengthen relationships with loyal customers and reach new audiences.
“It’s essential to understand consumer behaviour across all stages of the buying journey to create targeted marketing and sales strategies,” said Euromonitor. “Consumers are bombarded with notifications and promotions. So, brands and shopping experiences should align with their needs to stand out from the competition and succeed.”
Indeed, the company noted that segmenting consumers by their traits, values and buying behaviours, and not just demographics, will help to increase conversions or better understand customers.
“Take millennials, for example. This generation is often assumed to be one of the most tech-savvy groups, active on social media and comfortable buying products and services online,” the report states.
“In practice, brand managers and marketeers need to identify and pair personality traits with current buying behaviours and lifestyle habits.”
Eight consumer groups for 2022
Euromonitor said the eight consumer types identified in its latest report are: Secure Traditionalists (18% of the population), Undaunted Strivers (16%), Balanced Optimists (14%), Empowered Activists (14%), Cautious Planners (13%), Impulsive Spenders (13%), Minimalist Seekers (9%), and Conservative Homebodies (6%).
It noted that Secure Traditionalists are set in their ways, unlikely to place importance on their image, and rarely follow the latest trends. More than half (60%) do not interact with brands or retailers on social media, while 51% do not believe it’s important to cultivate personal brand online.
“This consumer type can be difficult to influence since they rarely make impulse buys or try new products and usually stick to purchasing their essential items. They’re frugal, frequently focusing on low prices and saving money,” said Euromonitor, noting that discounts and sales can sometimes influence their purchasing habits, causing them to choose the cheapest alternative.
The report added that Secure Traditionalists do not typically read reviews online (74%) and are most influenced by recommendations by friends and family and independent consumer reviews.
“Secure Traditionalists do not enjoy the shopping experience. The more convenient and efficient retailers and brands make the buying process, the more likely these consumers are to make repeat purchases. They still value in-store shopping services and are more likely to do their research and make purchases in store rather than online,” said the report. “But these consumers have become more comfortable using technology in recent years, which opens new opportunities and digital channels for businesses to target them.”
© AdobeStock/Piman Khrutmuang
Looking beyond ‘millennials’
On the other hand, it stated that Undaunted Strivers enjoy living in the moment and invest in and prioritise their image – with 97% claiming to interact with brands and retailers online, 88% claiming to want products and services that are uniquely tailored to them, and 87% reporting it is important to cultivate their personal brand online.
“Undaunted Strivers are tech savvy. They tend to be active on social media because these platforms portray a lifestyle they want to live,” said Euromonitor. “They care about what others think and like to keep up with the latest trends.”
It added that compared to other segments, Undaunted Strivers are more care-free in their spending habits, noting that 86% prefer to spend money on experiences rather than products, and 55% plan to increase overall spending in the next year.
“These consumers enjoy trying new products and experimenting with different brands, as well as actively seeking premium and well-known items, even if they need to pay more,” it said. “Their image-conscious nature and continuous interest in the latest trends can help companies influence this consumer type.”
While it may be easier to make generalisations and assign these consumer types to very specific demographics, Euromonitor again warned that demographic data does not always match up with consumer types.
“Based on their reputation, you may think most millennials are Undaunted Strivers,” said the report. “But this broad notion conflicts with the stark contrasts in their attitudes towards and usage of technology. The reality: not all millennials are Undaunted Strivers.”
“In practice, brand managers and marketeers need to identify and pair personality traits with current buying behaviours and lifestyle habits,” it noted.
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