Market Segmentation


What are demographics?

Demographics consist of a set of several static traits shared by a population, such as annual income, age, education level, marital status, occupation, and gender. Due to the nature of this information, it is generally more stable and easier to track than other segmentation methods.

What is the purpose of demographics?

Segmenting your audience by demographic traits can help you derive multiple actionable insights. For example, analyzing an audience’s average annual income is useful to determine if that segment’s purchasing power is compatible with your pricing strategy. Furthermore, information such as age and gender may be linked to different responses to certain brand voices and copy tone, among other insights that can be gleaned from demographic data.

How do demographics work?

Demographics can be easily extracted from current leads, mostly because such information is usually publicly available, such as on LinkedIn profiles, for example; or have been filled in lead capture forms. Acquiring this data may help you identify different segments of your audience, enhancing your ability to properly target and nurture leads accordingly.

Why are demographics important?

Demographic data can help to drive a myriad of marketing strategies. For instance, apart from the previously mentioned adjustment of pricing strategies and messaging, demographics can also help you avoid crafting irrelevant content by analyzing your audience's level of education. However, this data alone is often insufficient to accurately discern audience segments and, as such, should be used in combination with firmographic, psychographic, and geographic segmentation, among other techniques.