{"id":9004111223080424,"date":"2022-01-18T12:32:00","date_gmt":"2022-01-18T16:32:00","guid":{"rendered":"https:\/\/www.pragmaticinstitute.com\/?p=9004111223002657"},"modified":"2022-02-22T16:32:24","modified_gmt":"2022-02-22T20:32:24","slug":"using-data-driven-personas-to-boost-business","status":"publish","type":"resources","link":"https:\/\/www.pragmaticinstitute.com\/resources\/articles\/product\/using-data-driven-personas-to-boost-business\/","title":{"rendered":"Using Data-Driven Personas to Boost Business"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Personas are nothing new to the world of product; product marketers have been using them for years to get inside the heads of their existing, potential and desired customers. But, a little like the difference between someone saying there is a bump on your head and your doctor doing a CT scan, data allows us to see the descriptive statistics that make up our consumers and gives us quantifiable information with which we can make better decisions.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><b>A \u2018data-persona\u2019 differs from a regular persona in that it is backed up by, well, data.<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">In its most basic form, a data persona is the Sims version of your most popular customer(s). The framework for this character is based on consumer demographics\u2014think frequency of purchase, time of purchase, other purchases (a.k.a. Basket analysis), as well as things such as age, gender and habits of your consumers.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s say you sell marijuana, which is a good example because the reasons for purchase and the type of people purchasing differ significantly. To better understand, and sell, you create a series of data personas:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Bob, the 86-year-old retiree with arthritis, needs help alleviating his symptoms. He has limited disposable income and isn\u2019t familiar with the products on offer.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Jay, the 24-year-old recreational user who purchases consistently (week to week) and knows what he wants. He has limited income, but is a frequent buyer.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Mary, the 43-year-old professional, who purchases infrequently, but high-cost items, and has some knowledge of the products. She purchases for recreational and medicinal purposes.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">As an example, this lacks many specifics, but it gives you a general idea. Since companies can\u2014and should\u2014have multiple data personas, they can give you a more humanistic look at who your clients are\/might be, and thus several key insights:<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What products they might want.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What their buying habits might be like.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What else they might buy.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What advertising they might respond to.\u00a0<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><b>Data mining is the labor that builds out your data personas.<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">In a nutshell, data mining is extracting and discovering patterns in large data sets, through the use of machine learning and statistical methods. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the case of data personas, data mining trawls through consumer demographics, thus providing the information and refinement for the data personas; these can then be cross-referenced with outside, historical or future data sources to build a robust persona.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Data mining also allows us to validate the personas. The fancy term for this is turning a proto-persona into a validated-persona. A proto-persona is the ideal customer, or who you <\/span><i><span style=\"font-weight: 400;\">think <\/span><\/i><span style=\"font-weight: 400;\">your customers are. <\/span><i><span style=\"font-weight: 400;\">But<\/span><\/i><span style=\"font-weight: 400;\">, it\u2019s through data mining\u2014and using the subsequent statistics it generates\u2014that moves a proto-persona into a validated one that has significantly more nuance.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It should be noted that another way to validate personas is to conduct a win\/loss analysis.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><b>Creating data personas gives you insight into what motivates someone to buy.<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Creating personas is more than just finding the mean age and income of your clients, it\u2019s about uncovering what their hobbies are, what their other purchases are, who they connect with, all converging to one focal point\u2014what motivates this person to buy.<\/span><b><i>\u00a0<\/i><\/b><\/p>\n<p><span style=\"font-weight: 400;\">When we think about creating personas, we have to think beyond the scope of quantitative data, and dig into qualitative data.\u00a0<\/span><\/p>\n<blockquote><p><span style=\"font-weight: 400;\">Refresher\u2014quantitative data is your means, standard deviations, and so on. It tells us a great deal about the semantics of our persona. Qualitative data tells us about the quality of a person and rounds out the picture in reality.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">Qualitative data looks at how comfortable your customers are using technology, whether they are religious, travel, how they eat and so on, depending on what data you pull.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By combining both quantitative and qualitative to build your personas, not only are they more realistic, but they are more likely to provide real-world results when it comes to putting them to use. <\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><b>But wait, where do we get all that kind of data?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">That is a good question. Here is the answer:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Your CRM (customer relationship management)\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0Website analytics from your website.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Market research<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Statistical analysis from outside sources (think Statista, Gallup, Data Market, etc.)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Previous marketing campaigns<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Your sales team<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Your data teams<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Conducting surveys (like Survey Monkey)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Focus groups<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><b>True validation comes from understanding why a trait exists.<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">We\u2019re not trying to get overly Freudian on you, so we will stick with the tech terms, descriptive and derivative.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Descriptive traits exist because of the person. Bob (our retiree) buys marijuana to help with arthritis, and he buys products based on their ability to ease physical pain. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">The key thing to note here is that Bob is motivated to buy particular items based on traits relative to him, and thus descriptive traits can help predict future behavior. If you have a new item that promises to alleviate arthritis pain, Bob is likely to buy it.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Derivative traits exist due to a factor you\/your business has created or how a customer perceives your business. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, if your marijuana business sells a particular item at an unusually low cost, and it sells incredibly well, the high rate of purchases of this item is likely due to this factor and not individual motivation on behalf of the customer.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It is essential to distinguish between the two and build personas on descriptive traits since those help you understand your customers, thus understanding how changes will affect them.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><b>Data personas have a lot to offer, from advertising to new markets to new products.<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">It\u2019s easy to think that data personas can only tell you about your existing customers and what they want, but they also offer a lot of insight into other key areas:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Validated, cross-referenced personas can tell you if other products or services you can potentially sell to your clients.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">They can tell you if other groups of people overlap with your personas, showing you new markets to target.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">They can help you with brand messaging, advertising and, alongside rapid A\/B ad testing, can allow you to find high-value\/low-cost ads.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">So, while personas tell you a lot about your existing customers, they also act a little like a Venn diagram, showing you which areas (of service or new clientele) you can expand into as well.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><b><\/b><b>The drawback? We\u2019re looking at an average customer, but not anyone outside that.<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The obvious drawback here is that data personas are an amalgamation of the most common features of (x) number of customers, but many people will fall outside those frameworks; if you have 100 customers, 60-70 might fall within personas, but what about the rest?\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Validating the personas through focus groups and surveys can help reduce this issue; a bit like mixed methodology research, this ensures that outliers aren\u2019t ignored, and can show you that there will always be customers who fall outside the norms, and whose behavior cannot always be predicted or accounted for.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The less obvious drawback is that it can predict \u2018harbingers of failure\u2019, although this isn\u2019t necessarily an outright negative. Harbingers of failure was a term <\/span><a href=\"https:\/\/journals.sagepub.com\/doi\/10.1509\/jmr.13.0415\"><span style=\"font-weight: 400;\">coined by marketing whiz Eric Anderson,<\/span><\/a><span style=\"font-weight: 400;\"> and it showed that some people buy the duds, and &#8211; in doing so &#8211; their early enthusiasm creates falsely inflated positives about a product or service.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The term \u2018harbingers of failure\u2019 came about, as certain people are more likely to always choose the duds. In terms of data mining and data personas, the data is not always as clear-cut and trustworthy as we would like. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">But, just like with any science, there will always be a modicum of uncertainty that cannot be completely eliminated; humans are, after all, fickle creatures.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As <\/span><a href=\"https:\/\/sciendo.com\/article\/10.2478\/dim-2020-0005\"><span style=\"font-weight: 400;\">Jansen and his colleagues<\/span><\/a><span style=\"font-weight: 400;\"> point out, \u201cdata-driven personas can be leveraged as analytics tools for understanding users.\u201d With the advent of integrated marketing and the proliferation of social media, you can\u2019t sell to \u2018John Smith\u2019, a hypothetical persona. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">You have to understand people personally, and ironically, tech allows us to do so. Data mining humanizes John Smith, elevating him from an ideal to a fleshed-out being, with a family, desires, needs, and motivators.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ultimately, we all want to feel like we are noticed and understood. Companies that utilize validated data personas are more likely to connect and empathize with their clients, meeting their needs and forging long-lasting customer loyalty.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Data allows us to see the descriptive statistics that make up our consumers and gives us quantifiable information with which we can make better decisions.\u00a0Not to mention, data personas have a lot to offer, from advertising to new markets to new products.<\/p>\n","protected":false},"author":9004111222834625,"featured_media":9004111223002673,"menu_order":0,"template":"","categories":[9004111222497210,9004111222509561,9004111222501021],"tags":[],"content-series":[],"content-format":[9004111223037711],"framework-box":[],"vertical":[131],"ppma_author":[9004111222150060],"class_list":["post-9004111223080424","resources","type-resources","status-publish","has-post-thumbnail","hentry","category-product-development","category-product-management","category-product-marketing","content-format-article","vertical-product","author-morven-watt"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Using Data-Driven Personas to Boost Business | Pragmatic Institute<\/title>\n<meta name=\"description\" content=\"How to use data that gives us descriptive statistics that make up our consumers with which we can make better decisions.\u00a0\" \/>\n<meta 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