How Demographic Segmentation Can Help Your Business

Demographics represents a group of peoples who are further subdivided into smaller groups based on their demographic factors, also known as socioeconomic details such as age, gender, location, marital status, income, occupation, ethnicity, education levels, and household sizes. In some cases, a company might need to target audiences at a specific location, instead of covering the entire market or all geographical area. Under such circumstances, marketers use demographics segmentation whereby customers are targeted based on their demographics.

Though socioeconomic details in demographic segmentation are an excellent point to start, nevertheless, relying merely on these parameters is not a wise approach. Undeniably, demographics segmentation is used to elaborate on the desires, needs, and habits of your potential consumers, but it is still not a holy grail.

Actually, marketers need to expand the scope of their research in order to meet the actual demands of their customers. The product for the segmented area can only be selected then and these parameters are not sacred symbols whose scope cannot be extended or changed.

Demographic segmentation is a “one size fits all” approach that can be beneficial for massive groups. However, this practice seems expensive, unnecessary, and ineffective today. Is that so? Yes, it is a fact because, in addition to the demographic details, there are also some other critical factors to consider, such as having information concerning pain points, behaviours, and personalities.

Why Is Demographic Segmentation Used?

The basic assumption behind demographic segmentation is that all members in the same group have the same traits and, therefore, marketers target only those with these defined traits. This is the reason marketers use demographic segmentation to find prospects for their services and products.

Why Is Just Demographic Segmentation Inefficient?

Demographic segmentation is mixed, inconsistent, and complex. Why? It is not necessarily true that two people in the same demographic group have the same taste, hobbies, smoking habits, or usage of social media platforms. For example, one might be using Facebook, while others are utilizing Instagram. Is it wise to grab the attention of both through the same approach? No, it’s not!

Is There Any Alternative Approach?

In addition to the demographic segmentation, marketers should also pay heed on customers’ desires, needs, motivations, fears, interests, and motivations. With the help of psychological insights and technology, marketing professionals can create a more in-depth personality profile that would be much better than the demographic segmentation. For example, social media helps them know the characteristics and emotions of the targeted audience and Artificial Intelligence (AI) can be used to build rich personas.

The Positive Aspects of Demographic Segmentation

Demographic segmentation is easy and fast. Socioeconomic details can be collected through surveys or/and reports, and census data. Demographic segmentation is still being used, such as mostly in media placements where TV reality shows demonstrate advertisements to slot retirement homes. Another example is about the hair transplant that is mostly promoted in a football magazine.

As a result, it can be said that demographic segmentation has not been completed outdated or of no use. However, with demographic segmentation, marketers should also use some additional factors such as technology and psychological insights to reach out to the audience more effectively.