No matter the size of your business, it needs a targeted approach to your customers. Using demographic data can give you a head start in understanding your market.
What is Demographic Data?
Demographic data is statistical data about the population’s characteristics, such as age, race, gender, income, and more. It is typically used to research a product or service and how well it is selling on the market, who likes it, what areas it is most popular, etc. Demographic data can be collected through surveys or questionnaires.
Demographic data gives detailed information, such as why customers make individual choices because of their age, gender, where they live, or something else. All of this can help businesses predict the degree of success of a product in the marketplace and how customers react to it.
Uses of Demographic Data
There are several uses of demographic data:
Businesses can use demographics to group customers based on variables including age, race, gender, ethnicity, location, marital status, education level, occupation, employment status, income level, etc. Grouping consumers by using demographic data allows businesses to understand each segment, what they want, and how they want it. It can help businesses to market every product differently based on the consumer groups they are targeting.
Businesses can use demographics to figure out the next step of their growing business. By understanding what their customers are looking for, companies can determine such essential things as would customers be happy with another location and, if so, how far would be too far for them. Customers can also help businesses avoid making costly mistakes, which can help push the company forward.
Businesses can use demographics to customize products to specific consumer groups. Demographic data can also be used to customize products or services by finding out what consumers want and changing the existing product to fit the desired outcome. The main idea behind customizing products is to save time and money on products or services that aren’t wanted or don’t fit consumer specifications.
How Do Businesses Use Demographics in Marketing?
Here are some examples of how businesses use demographics in marketing:
Social Media Marketing – Most social media platforms’ demographics are readily available. Businesses use these demographics to inform their social media strategy. The key is to look at where their customers’ demographics overlap with those of social media.
Ad Spends – When businesses know their customers’ demographics, they can better manage their ad spend strategy. Age group is an especially powerful demographic for ad spending, particularly for products or services that target young adults who tend to spend more often or older adults with greater spending power.
Marketing Campaign Images and Their Placement – Visuals and images can be vital it’s marketing plan. However, if visuals (digital ads, ads on transit stops, etc.) are not relevant to the targeted groups, they will be less effective.