Demographic Segmentation
Demographic segmentation is the process of dividing a market into smaller groups, according to measurable characteristics such as age, sex, income, education, and occupation.
Dem Seg helps businesses to tailor their products and services to meet the specific needs and preferences of their target market(s). This type of segmentation helps businesses to create cost-effective strategies and tactics that appeal to the specific needs and preferences of one or more cohorts within their target.
Why is Dem Seg Important?
Because demographic segmentation will focus your company’s efforts on the groups of people who are most likely to buy so that your company pays less per customer. Dem Seg also helps businesses to identify new market opportunities and stay ahead of their competitors.
Example: a business that sells baby products would segment their market based on the age and family size of their customers.
How to Implement Demographic Segmentation in Your Business?
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Free Demographic Segmentation Worksheet
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To implement Dem Seg in your business, you need a strategy and sets of tactics which your targets are likely to respond to, after conducting market research to identify relevant and actionable characteristics of your target market.
Your company can do this through surveys, focus groups, or by analyzing customer data. Once you have identified the relevant demographic variables that drive purchases, you can divide your market into smaller groups. You can also use demographic segmentation to develop new products or services that meet the specific needs of each group.
Once you finish with Dem Seg, move on to the next segmentation stage.
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