Demographics are the most widely used form of segmentation and take into consideration factors such as; age, gender, income, family situation, annual income, education, ethnicity. The B2B version of this, firmographics also incorporates company size, industry, job function etc. Demographics offer some of the most common and easy to interpret statistics that can be used to group entire populations.

Pros

Demographic segmentation is perhaps the most straightforward way of defining customer groups.

One of the major positives about this type of data is that it is relatively easy to obtain and collect. Brands are most likely are already collecting demographic data through your social media channels, google analytics or email tools like survey monkey. When considering the wider public, there are several public data sources including census data which are readily available. All of these data sources are free to use and will be easy to assess and measure.

Demographic data is certainly a good starting point when you start to consider analysis of your target market, but STRAT7 Bonamy Finch have seen our segmentations move away from demographic caricatures, towards more nuanced, longer-lasting psychographic influenced studies.

Cons

Whilst Demographic information is often a good starting point, the information is very basic and should be considered a fall-back to any marketing and sales effort.

Demographic segmentation is prone to the criticisms of generalisation and stereotyping. Grouping people based on simple demographic information can lead to brands making blanket statements about consumers. An obvious example of this would be the common perception that people in the 65+ age demographic may be technologically challenged. Whereas, in actuality 48% of this group now has a social media profile and they are the largest growing sector of casual internet users.

Another reason that Demographics are not as informative as they may once have been is the trend towards capturing secondary markets. In recent years we have seen a wide number of sectors seek to open their product base up to as wide an audience as possible and we have seen the dissolvement of ideas such as ‘boys toys’ and ‘girls toys’ for example. As more brands seek to become unisex and appeal to wider age groups, demographic based segmentation can no longer deliver real insight.

We have seen many of our segmentations move away from demographic caricatures, towards more nuanced, longer-lasting psychographic differences in target consumers.

STRAT7 Bonamy Finch are the experts on segmentation. With over 1500 successful projects we go far beyond demographics to combine insight from multiple sources and techniques. Multi-national organisations turn to us for their challenging projects, to find out why you should to: sign up for our next event or get in touch


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