Demographic Segmentation: Explanation & Benefits

What is Demographic Segmentation?

Demographic segmentation is defined as a market segmentation method that looks at variables such as age, gender, income, religion, and educational qualification that help organizations to understand consumer behavior. These variables are then used to divide a consumer market into smaller segments based on common factors. Once an organization gains these insights, it becomes easier to target, understand, and learn from their consumers. Having this insight is essential for businesses to stay ahead of their competitors.

Types of Demographic Segmentation

Age and Gender

This variable is very important when starting to segment your consumers. Everyone in the world can be put into generational segments based on their age range. The same can be (mostly) said for gender as well. Age and gender segments often have similarities that can be assumed across the entire group. For example, people born between 1946-1964 are considered baby boomers; this group can then be broken into gender, and then research can begin into their behavior.

Household Size

Household size, or more commonly known as Family Size is important to know for targeting specific consumer bases. Spending patterns and disposable income change with the more people that are in a household. Knowing this information about your consumer base allows you to infer their purchase intentions and what drives them (family). This information also helps companies to alter features and benefits to satisfy consumer needs based on household size.

Income, Occupation, and Education

This demographic information is very important to know for pricing strategies, purchase influences, and preferences. Organizations can change their marketing strategies to fit around income level and education. A person’s income level and education level have been shown to directly influence product purchases, desired product characteristics, and buying power. Occupation is important for businesses that offer services for specific business types and can also predict consumers’ interests.

Religion, Race, and Nationality

Another important demographic descriptive, religion, race, and nationality can offer insights to make sure that companies deliver appropriate messaging for different regions and segments. With the world becoming less homogeneous, this demographic piece can help organizations be sure to not unintentionally offend people of different backgrounds because they are not aware of their customs and cultures. This information can also allow for consumers’ belief systems and backgrounds which helps when developing a content plan.

Benefits of Using Demographic Segmentation

Higher Customer Retention

When companies use demographic segmentation, they begin to focus more on their consumers’ thoughts and needs which leads to a higher level of retention. Marketing strategies are made more personal because of the insights gained and the consumer begins to feel more of a personal connection with the product or service.

Increase in ROI

By using the insights gained to target very specific consumer segments, companies can have an increase in revenue. This increase in revenue matched with no increase in advertising spending leads to a higher ROI.

More Optimized Marketing Strategies

Segmentation allows organizations to get more specific and creative with their marketing strategies because they know exactly who they want to reach and how they need to go about it. When the exact market base is known, messaging can be clarified. This allows companies to save money and time.

Improved Products and Services

Because of the insights that organizations gain from using this segmentation, they know their consumer base on a deeper level. This allows for better product/service development which contributes to customer retention and ROI.


Digital Marketing

What is Digital Marketing?

What is ‘Digital Marketing’? 

If you’re a business owner, you hear this a lot.  In short, digital marketing is the term for your company’s online marketing efforts.

Tools To Use 

Google search, social media, email, online advertising, and your website are all examples of tools you can use to enhance your company’s digital presence. 

Do I Have to Pay For All of Those?

While social media, email marketing, and your website are not technically paid advertising. Each avenue contributes to the overall online presence of your business. 

When people naturally come across your social media posts, for example, the sharing of that content helps reach an even larger audience without any cost to you!

Is Social Media and a Website Digital Marketing?

It is important to have a website and social media profiles to be an information location for potential and continuing customers.

A great example of digital marketing is having a review section on both your website and social media for customers to tell others how great your business is. 

A website is also key to having your company on the digital map. 

By having a well-put-together website, your business will be found easily by potential customers via Google search. It is also a place for online ads to be linked to when seen by potential customers in other areas of the internet.

How Does My Investment Help Me With Future Marketing? 

Another reason to invest in digital marketing is that it is the easiest way to reach your target audience: online. 

This will allow you to see real-time, measurable results from your marketing efforts. You can adjust as you need to, and using that data to create future advertising. 

Using your website and social media, you can funnel money into your marketing to best reach your target audience. 

Paid digital marketing efforts include displays and banners, pay-per-click (PPC) advertising, and boosted social media posts and Facebook Ads. 


Find out how you can apply digital marketing to your business with the Post and Courier here!