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Why do you need Demographic Segmentation & how it aids your revenue!

What is Demographic segmentation?

Demographic segmentation is often the first step in creating customer profiles that help you make better products, messages, and close deals.

Before we had things like Facebook and Google that let you target your customer’s interests, intent, and behaviors i.e. the things that make up psychographic segmentation, all we had was demographic data.

Demographic segmentation is understanding how different demographic groups perceive your brand. Segmentation is different from targeting, as segmentation involves identifying how groups of people are different, while targeting involves actively selecting which groups you want to address.

Demographic segmentation separates your target market into specific, accessible groups of people based on personal attributes like geography, age, education, occupation, and income. By leveraging demographic segmentation, you can create personalized marketing campaigns for each slice of your target market.

Demographic segmentation can also optimize your resources and time because distributing personalized marketing messages to each slice of your target market will resonate with more people and lead to more conversions than spraying a generic message to your entire target market.


Types of Demographic Data

Demographic data is descriptive data about people. It uses markers that describe how different populations live and define themselves. Some examples of demographics are:

Gender segmentation can be both wise and unwise. Kids’ toys are sometimes needlessly gendered. Often, children play with toys that cross traditional gender boundaries.

However, clothing is a product segment where gender plays a necessary role. Clothing will fit one gender differently than another. As age increases, so do divides in gender behavior, paving the way for marketers to study the different characteristics and purchasing habits of each.


What appeals to a ten-year-old generally won’t appeal to a sixty-year-old. A picture book about Amelia Earhart might catch the eye of your younger customer. A thick biography of the same person should be marketing to an older demographic.

Age segmentation means focusing on the age range most valuable to your product or service. Marketing demographic age brackets are usually 18-24, 25-34, 35-44, 45-54, 55-64, and 65 and older.

Huge chain stores like Reliance Fresh, Ratnadeep know their target demographic is people with lower income. These Reliance Fresh customer demographics drive decisions about which regions of the country to place retail outlets. Reliance Fresh also prices products accordingly, providing a wide array of products — from toothpaste and clothes to groceries and jewelry — all at super affordable prices.

A store like Lifestyle/ Homecenter, on the other hand, serves a market it knows is willing to fork out bigger bucks for pricy home-décor and clothing items.

Education Level
If you’re opening a bookstore, you’ll want to find out the average education level in your community. Do you have a lot of kids and high-school non-graduates whose reading needs will tend toward commercial fiction?
Or are you surrounded by literary professors who’ll demand fat stocks of the old Classics?

Related education segmentation examples might include how tech-savvy you need your product’s audience to be, or whether they have white-collar or blue-collar professions.


In areas where high populations of Marwaris & Gujjus call home, businesspeople would be smart to invest in vegetarian products oriented grocery stores and restaurants.
In such places with tiny populations of Muslims, the same restaurants and grocery stores won’t find nearly as much business.

But general-market stores examine the ethnic makeup of their surrounding areas, too. Because ethnicity influences the kind of food someone buys, this kind of grocery market segmentation could drive the kinds of products that line the shelves.


Family Composition
Will a family with six young kids want a “buy two, get two free” deal on diapers? Absolutely!
But a family with older kids won’t be interested in such a deal.


A Kannadiga woman with curly hair will want different hair products than an Assamese woman with silky straight hair.
Knowing these differences helps businesses understand the needs of the people they’re marketing to.


A Hindu audience might be interested in a bhajan singing app, but a Christian audience likely wouldn’t be.


If you’re part of the Baby Boomer generation, you probably love a steady 9-to-5 job with benefits. Maybe you work in an office, so business attire and shoes that both suit your professionalism and are comfortable are highly relevant to you.

Look down through the generations to Millennials and Gen Z, and you’ll see people who are more interested in finding adventure in their jobs. On the other hand, many people from younger generations would rather build small businesses from the ground up. They’re focused on making a living, however meager, doing what they love. They might, therefore, care more about finding the perfect vintage theme for their handmade stationery shop online than about scoring the perfect 9-5 well settled job. 


Why is demographic segmentation important?

Demographic segmentation allows you to provide a more personalized experience, complete with messaging that better resonates with your audience.

Market segmentation is vital as it helps you reach your potential consumers easily. You can refine the messaging style to suit the type of audience you wish to engage by targeted market segmentation. Targeting customers accurately at the right time yields rewards. You can quickly achieve high conversion rates, boost your sales, and earth greater profits. Appropriate targeting results in brand loyalty through customer satisfaction. Demographic segmentation in marketing helps stratify individuals and is an excellent tool for mass marketing.


What’s the best way to use demographic segmentation to your advantage?

As a marketer, the best way to use demographic segmentation to your advantage is to:

  • Target the right customers
  • Customize your products and advertisements to catch those customers’ attention
  • Save money (by not wasting ad space on people to whom your product might be irrelevant)
  • Anticipate your customers’ future wants and needs and tailor your product accordingly.

Have you written a book? Designed an app? Are you setting up an e-commerce store? Fanatish can help you with the demographic segmentation.

If you know your target audience (and in this day and age, you absolutely should know exactly who you’re selling to), we can create a poll targeted at that demographic & ask them which version of your product would make them more willing to purchase it. This not only gains engagement but also creates traction between the brand and customer. 


In conclusion

Demographic segmentation is an excellent way to provide relevant and targeted messaging to potential customers and existing customers alike. The key for your business is identifying which segments are most relevant to you, and how best to utilize the opportunities segmentation affords you.

You can’t please all consumers, but you can divide the larger market into unique demographic segments and then cater to each one’s needs individually.

For more on how to personalize and make the most out of your post-click marketing efforts, sign up with Fanatisch Digital Marketing Services and reach them who you make your products for. 

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