Psychometric Marketing in Luxury Retail | AIlon in Marketing

Psychometric Marketing in Luxury Retail

Marketing in Retail

  • Understand buyer's motivation and needs
  • 41% increased click-rates
  • 58% more revenue with marketing initiatives

The challenge

Our client is a Europe-based market leader in the luxury goods industry and has grown to offer a wide range of luxury products worldwide. The company operates under one main guiding principle: build products that satisfy the aspiration of special moments in people’s life.
Our client had a detailed segmentation of his audience which has been based on socio-demographics and geographics, however, it missed the key-driver for his clients purchase-decision:

The psychometrics.


AIlon has a massive corpus of psychometrics of consumers at its disposal. Leveraging psychometrics in combination with segmentation increased the click-rates of marketing social media initiatives by 41% and the revenue of marketing initiatives by roughly 58% using advertisements that were aligned with the personality of the respective segments.

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Psychometrics have been proven to be the key for our future marketing activities, as demographics become less and less important in modern societies

Read the full story

The company was dealing with many marketing and communication agencies in order to identify optimal marketing strategies, however, they still struggled with the audience segmentation due to a limited scope onto sociodemographics and other classical market research approaches. Clearly, sociodemographics can account for a certain share of consumer behavior, but psychographics have a lot more explanatory power. AIlon builds optimal marketing strategies in three sectors: geographics, sociodemographics (incl. lifestyle habits) and psychographics. Thus, AIlon draws a much more accurate picture of audiences and even more important, AIlon delivers causal reasoning for consumer decision making. Drilling into AIlon’s data, we figured out that our client’s marketing addresses just one of three segments within the audience. This was due to insufficient and oversimplified market research modeling. AIlon applied clustering algorithms with regards to the psychometric features of the audience and found three highly significant clusters - the client was aware of just one of them. Socio-demographially speaking, the clusters were identical, because the causal reasoning does not take place along socio-demographic lines.

Simplifying AIlon’s findings: there were three clusters. The main cluster (making up roughly 60% of the audience) are highly extroverted and emotionally stable people. These individuals are self-confident and self-assured. Furthermore, they are socially active and perceive the product as a mirror of themselves - this had to be addressed when talking to this audience.
The second segment (which made up for approximately 20% of the audience) is strictly less emotionally stable, argumentative and has a feisty attitude. However, having socio-demographics in mind, these individuals are still very successful in their job. The key brand feature for this segment is it's quality as a status icon. The people in this cluster want to be respected. The third cluster (appr. 20%) can be described as less extroverted and very competitive. Individuals in this cluster do not care about what others think of them. The main brand feature for this cluster: quality. Individuals in this cluster like being alone and independent, they prefer quality over quantity and usually do not follow trends.

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