Demographics is defined as a statistical view of a population, generally including age, gender, income, schooling, occupation and so on.
Understanding the demographics of your target customers is critical to the success of your business. Whether small or large, businesses need a targeted approach to consumers.
Demographic information is a few of the best information you’ll collect from your audience, and conjointly a number of the foremost process. It helps you outline style components like the colors your target market can respond best to, and also the ideal user expertise for your average customer’s technical knowledge.
Business owners or sales reps often first gather demographic information to include in the business plans used to raise start-up funds and guide the launching of the business. Demographic information includes geographic area, age, income, race, gender, and education level. It also includes shopping habits, marital status, number of children and other information about consumer characteristics.
Why You Should Use Demographics For Your Company?
This information may assist you to gear your site’s content and data towards the foremost explore for keywords and terms. It will basically assist you to use the principles of program improvement to your benefits. Also, it helps you avoid the hit-and-miss marketing method.
Additionally, these 5 reasons suggests why you must use demographics for your company.
#1 Understanding the Ideal Customer –
Every business has an ideal customer profile. As you create the profile of the ideal customer, you delve deeper into that ideal customer’s tastes, preferences, and potential issues with a product or service. Doing so allows you to improve and create sales opportunities that target the customer you want. Hence, your sales representatives wouldn’t have to waste a lot of time.
#2 Lowering Sales and Marketing Costs-
Sales, as well as Marketing, can be extremely expensive, and a medium is one of the factors that essentially decide your budget. If you know your target demographics, you can stretch that budget by going where you can find your ideal customer. If you’re looking to target audience, it wouldn’t make sense to spend money on a direct mail marketing campaign–they’re all on social media. Instead of large, blanket sales and marketing strategies that cast wide nets for a few fish, you’re able to cast your fishing rod and catch your limit in a smaller but more effective pond.
#3 Identifying New Opportunities-
Not only do demographics help you find your ideal customer, they can help you identify gaps in your sales/marketing strategy. You will have to understand different consumer bases. Similarly, your key demographic might be asking for products and features based on their lifestyles, which would mean a no-brainer addition to a product or service line.
More Insight –
#4 Creating Unique Selling Points-
Demographics help you create a good sales/marketing story. Instead of just throwing a product or service out there and hoping it sticks, you can create as well as define scenarios to which your customers can relate. If you think about some of the products and services you use regularly, chances are you can identify times when you were specifically marketed to based on your age, gender, geographical location, economic status, and overall lifestyle.
#5 Increasing Sales-
The most important function of demographics in sales/marketing is obviously to increase sales. By understanding consumers, any business can increase marketing efforts to target those most likely to buy. Whether you’re changing up marketing strategy or offering current customers more products and services, you must know what consumers want.
Where to get the Demographics or Demographic Information?
Demographics are used so that you can get your message out to a group of people who will be receptive to hearing your message. It will also allow you to save sales/marketing dollars, as you will not be spending money on ads in places where your ideal customer does not frequent.
This Demographic information, that we have been talking about is gathered from several sources; these include –
- The federal or state departments of commerce produce and collect demographics from many sources.
- Census Bureau data – Free to use and a wealth of demographic information.
- Bureau of Labor Statistics – A Consumer Expenditure Survey. The Demographic categories used include sex, age, race and ethnic origin.
- Social Security Fact Sheet – High-level data about African Americans, American Indians, Hispanics, Asians, Women and Young People.
- Tax Records – It can generally be found by searching “tax assessor’s office” for the county that you are are researching. This data is a goldmine for a length of residency, mortgage information, tax exemptions and deferrals.
- She-Conomy – A compilation of statistics about marketing to women.
- The local chamber of commerce can provide demographic information about your city, county, and state.
- Look for professional and trade associations for demographics related to specific industries or professions.
- Standard & Poor’s publishes its Industry Surveys and Consumer Index.
- Your local librarian can point you to statistical and demographic collections.