Demographic Segmentation Explained with Examples: What and Why?
You can only get to where you want to go if you have an accurate address for it. Similarly, to target end users, who are or can be your genuine audience, you need their demographic details. What are demographic details, and how can you utilise them? Demographic details include age, gender, occupation, and other relevant data that help with demographic segmentation.
In our previous blogs, we learned about behavioural segmentation and geographical segmentation. This blog will focus on demographic segmentation, its benefits, and its usage.
What is Demographic Segmentation?
Demographic segmentation categorises users into specific groups based on personal attributes. This may include age, gender, education, occupation, and income. These geographical details help you personalise marketing campaigns for each group.
What are the Benefits of Demographic Segmentation?
Demographic segmentation is a common approach in marketing. It involves dividing a market into smaller segments based on various demographic characteristics. Here are five benefits of demographic segmentation:
-
Targeted Marketing: You can tailor your marketing efforts to better resonate with specific groups. This helps in driving more effective and efficient marketing campaigns.
-
Personalisation: Demographic segmentation allows for personalised marketing messages and product offerings. You can address the unique needs, preferences, and pain points of different demographic groups, increasing the likelihood of conversions.
-
Cost-Efficiency: When you target your marketing to specific demographic segments, you can allocate your resources more efficiently. Instead of casting a wide net, you focus on the groups most likely to be interested in your product or service. Eventually saves money and time.
-
Improved Product Development: You can create products or services that are more aligned with your needs and desires.
-
Market Expansion Opportunities: It helps you identify market niches that you may not have previously considered. Identifying these opportunities can help you expand your customer base and grow your business.
Notifly: Manage all your notifications in one place
How do You Use Demographic Segmentation?
Demographic segmentation can also aid in market research. In addition, pricing strategies, the development of effective communication, and advertising strategies. It's an essential tool for understanding and reaching your target audience in a more meaningful way.
Geography-based segmentation
People from different regions have different expectations and needs. People from cool regions will look for winterwear, whereas people from warm regions like to buy cotton. Thus, it is essential to understand your user base and its geography.
Gender-based segmentation:
Segmenting users based on their gender can be a powerful strategy, as it gives you specific and wiser options for marketing. This can impact both buyers’ browsing and purchasing behaviour.
Example: A cosmetics brand launches a social media campaign for a new men's line targeting a male demographic.
Age-based segmentation
Age is not always a number but a parameter that can be effective for targeted marketing. Age segmentation here helps you identify the market and trends. By leveraging age, you can send personalised notifications that cater to users’ specific needs.
Example: A financial services company promotes retirement planning services to customers over 55.
Education-based segmentation
Can you count the number of mobile apps that help with learning? No! Because there are many. It involves everything from toddlers' learning to algebra; e-learning platforms have a massive market. Thus, education-based segmentation is highly recommended.
Example: A university is launching a new online data science certificate program.
Occupation -based segmentation
If you manufacture medicines, you will look for buyers in the same discipline. This applies to many other industries and their users. Occupation-based segmentation helps you target categories by job function, experience, and title.
Example: A B2B software company promotes new data analytics features to roles like data scientists and IT professionals.
Income-based segmentation
Income-based segmentation means dividing your customers into groups based on how much money they make. This helps you make your products, services, and marketing more suitable for their budgets and needs. In other words, it enables you to sell the right stuff to the right people.
Example: A vacation travel company offers luxury packages to high-income segments and budget options to lower-income groups.
Key Takeaway:
At this point, you should have a good understanding of demographic segmentation. We will also suggest you try the Notifly API tool. It lets you tailor your marketing to reach each group better. With demographic segmentation, you can send the right signals to the right groups. This helps drive more interest and sales from different kinds of customers.
