Having a “one size fits all” approach to marketing may seem like the easiest path, but your consumer audience isn’t homogenous.
Gaining a better understanding of your own customer demographics paints a finer picture of who your audience is, and how their characteristics could influence their interests.
As a result of this, you’ll be able to better market to these audiences based on their unique preferences. Examples of this include targeted marketing campaigns, messaging tactics, product offerings, and more.
Keep reading to learn more!
What Are Customer Demographics?
Customer demographics refer to the data businesses gather to segment their consumers based on general population characteristics.
These demographics include but are not limited to age, gender, education level, and ethnicity.
Businesses can even include location categorizations such as zip codes and census tracks to provide demographic information. This information is typically gathered towards the end of the chosen market research method, such as surveys.
While most customer demographics are measured consistently, it is up to the businesses to determine how they may want demographic standards to be grouped.
Why Customer Demographics Matter
Using the characteristics gathered from demographic data, businesses can effectively segment their customers and possible future customers.
By measuring demographic data, businesses are able to enhance their outreach methods, building a stronger connection with customers.
Additionally, identifying these demographics can also highlight current gaps in a specific market.
Another reason why customer demographics are so important is due to their ever-changing needs. Evaluating demographic data on a regular basis will help you stay on top of current consumer trends and preferences.
Recommended Reading: Demographic Segmentation: What Is It & How to Do It
Types of Customer Demographics
While there is a wide variety of customer demographics that can be gathered, below we’ve outlined the core group of characteristics that are standard when diving into consumer segmentation.
Age
Age is one of the fundamental characteristics that is used by businesses when exploring customer demographics.
Measuring this demographic lends insight into a consumer’s spending habits and their specific interests based on their age group. This demographic is essential for understanding customers because different age groups can have vastly different preferences on a variety of consumer-related topics.
For example, brand loyalty could be important to older consumers while things like affordability and pricing could mold the purchasing decisions of younger audiences.
Gender
Gender is heavily influential when it comes to personalizing marketing messaging and product design.
Different genders could be appealed to by different language and imagery used during market campaigns, which is why understanding their preferences is critical.
Additionally, it’s important to consider this from a product design standpoint. There may be gender-specific preferences for item types like clothing, cosmetics, household items, and more.
Income Level
Segmenting by income level can be crucial when it comes to building your marketing campaigns or even determining pricing strategies.
- Are you trying to promote luxury products or emphasize the affordability of your services?
- Are your high-income consumers willing to pay a premium for what you provide, or are they price-sensitive with little wiggle room?
Occupation
If you’re looking to target those within specific industry types, occupation could be the perfect customer demographic for your company to use.
For instance, your company may provide a service that could have different uses for industry-specific challenges. Segmentation by occupation can enable your business to tailor your offerings based on the needs associated with differing professions.
Education Level
Education level is another useful form of segmentation for creating different targeting methods.
Those who have attained higher-level education could prefer messaging with sophisticated language and higher levels of detail, while those with lower levels of attained education could identify more with visual messaging.
Education level can also correlate with purchasing power. For instance, those with higher education levels may have increased purchasing power which can directly impact a brand’s pricing strategy.
Marital Status
Marital status could be a defining demographic when it comes to diving into consumer spending habits and patterns.
Consumers who are married may have differing spending habits compared to those who are either unmarried or divorced. For example, those who are married may have increased spending power than those who are not.
Furthermore, marital status impacts customer needs. Married consumers and/or those with families could place more importance on household goods and related items when compared to unmarried consumers.
Family Size
Having an understanding of varying family sizes in customer demographics allows businesses to develop products and services that meet specific family needs.
Businesses can enhance the overall customer experience by catering to the lifestyle needs of different consumers based on their family size.
For instance, a family of two or three will likely require different levels of convenience from the products that they use when compared with a larger family.
Ethnicity
By using ethnicity as a customer demographic in segmentation, businesses can effectively address the needs of a diverse consumer base.
Businesses can use this to create inclusive messaging to target specific ethnicities, ensuring they’re aligned with the needs and preferences of these audiences.
Additionally, gathering data on ethnicity can be used to tailor marketing campaigns and even products/services to specific audiences. This can help position your brand as one that values the importance of diversity.
How to Collect Customer Demographics
There are many different approaches your company can take to collect customer demographic data. You can go straight to the source and ask your customers, or use pre-existing means to learn more about the makeup of your consumer base.
Below are a few examples of methods that you can use to collect customer demographic information.
Customer Surveys
Customer surveys are the most straightforward way of collecting customer demographic information.
These surveys can vary exploring topics such as customer experiences and preferences with a product or service. Customer surveys will also identify areas of improvement and are useful in gauging customer satisfaction levels.
There are many different types of questions that your customer survey could have and can be tweaked to best fit your needs.
While surveys are a common method of collecting demographic information, phone interviews and in-person interviews can also be used.
Market Analysis
A great tool to measure overarching market conditions, trends, and other customer characteristics, market analysis determines current and future views on a product/service.
Using market analysis can help you identify your target market by analyzing key demographics of those determined to be either current or potential customers.
You can also use market analysis to be more informed on market trends or gather competitive insights that can help identify gaps or opportunities within certain demographics in the consumer market.
Website Analytics
Business websites can be an extremely helpful resource for collecting customer demographic information and accompanying behaviors.
For example, website analytics tools like Google Analytics can provide your business with all types of demographic data about their visitors.
Most website analytics tools are capable of providing your business with audience reports that can segment visitors based on demographic data. These reports will show percentages of visitors in differing age brackets, as well as visitor locations or even other interests that third-party tools have gathered.
Using these website analytics tools can help your business in guiding your content strategy with a greater understanding of those most often visiting your website.
Recommended Reading: Website Analytics: Guide to Measuring and Improving (+ Free Checklist)
How to Use Customer Demographics
You’ve been able to gather all the customer demographics you could hope for but now what?
With all this information at your disposal, you now have plenty of options on what use you could make of this data. Below, you’ll find several ways that you can best make use of all the customer demographic data you have collected.
Targeted Marketing
Use demographic data to segment your audience and create targeted marketing campaigns.
For example, let’s say a significant portion of your customers are millennials.
Knowing that, you can then create marketing messages and content that resonates with this demographic. This may include using social media platforms popular among millennials, or incorporating relevant pop culture references.
In doing this, you’ll have an easier time connecting with this younger audience.
Product Development
Analyzing demographic data helps to identify gaps or opportunities in your product offerings.
For instance, if you discover there's a growing demand for eco-friendly products among your customer base, you can develop or expand your line of sustainable products to cater to this demographic.
In doing this, brands can make important product decisions based on data without guessing if they will be successful or not.
Personalized Messaging
Your brand can also leverage demographic information to personalize your messaging and communication with customers.
Personalization is an essential aspect of marketing to your customers effectively. In fact, up to 80% of customers respond well to some form of tailored experience. For instance, would you respond better to a brand’s vague messaging, or messaging that specifically aligned with your needs?
…Exactly!
Personalized messaging can be achieved through multiple ways, including:
- Addressing customers by their names
- Sending targeted promotions based on demographic characteristics and purchasing history
- Tailoring your communication to their preferences and interests.
Customer Segmentation
Dividing your customers into distinct segments based on demographic characteristics such as age, gender, income level, or geographic location is key in this process.
This segmentation allows you to better understand the unique needs and preferences of different customer groups and develop targeted strategies to engage each segment effectively. Customer segmentation is especially important for larger brands that feature varied offerings.
Optimized Pricing Strategies
Using demographic data can help determine pricing strategies that align with the purchasing power and preferences of your target audience.
For example, your brand can provide discounts or promotions targeted at price-sensitive demographics. Or, you can offer premium pricing for luxury products aimed at high-income earners.
By optimizing pricing strategies, customers will be able to purchase products/services within their budget.
Location-Based Targeting
Using geographic and location-based demographic data is helpful when targeting customers in specific regions with relevant offers, promotions, and advertising campaigns.
This approach can be particularly effective for businesses with physical stores or localized services. Not only does this method help connect your brand with locals, but it also ensures you’re catering to their specific needs based on their physical location.
For example, customers in one region may have a different set of needs than customers in another. Using location-based targeting, your brand can cater to each of these groups effectively.
Market Expansion and Diversification
Lastly, demographic insights can be used to identify new market opportunities and potential untapped customer segments.
Specific demographic data like income levels, age distribution, and others will help your brand highlight these untapped markets. Effectively using this data can result in a broader customer base and increased business.
Additionally, gathering demographics can provide further insights into your existing customer base. This allows you to identify adjacent markets or demographic groups with similar characteristics and preferences.
Contact Our Customer Segmentation Company
In order to see your business expand, uncovering key demographic data is a must.
At Drive Research, our team has years of experience gathering and analyzing detailed demographic information. We will work with the specific needs of your team to ensure you receive the proper demographic data to propel your business forward.
To learn more about our market research services, get in touch with us using any of the methods below.
- Message us on our website
- Email us at [email protected]
- Call us at 888-725-DATA
- Text us at 315-303-2040
Mason Banaszek
As a Research Analyst, Mason is involved in the entire project lifecycle. With five years of professional experience in both market research and political polling, he has the know-how of working with a plethora of research methodologies.
Learn more about Mason, here.
