What is Demographic Segmentation? Importance and Benefit

What is demographic segmentation?

Demographic segmentation involves segmenting your market based on demographic factors such as age, gender, family size, family situation, race, ethnicity, annual income, religion, and education.

Why is demographic segmentation important?

01

Better marketing 

Brands and businesses can integrate the demographic data of their current and prospective markets into their marketing and advertising systems. This will help them in targeting each customer section better. 

Why is demographic segmentation important?

Luxury targeting 

Luxury brands use demographic segmentation to target customers based on average income, focusing their marketing efforts on the affluent segment of society.

02

Why is demographic segmentation important?

Industrial campaigns 

Demographic segmentation enhances industrial campaigns by targeting specific sectors, job designations, and job roles, leading to a significant increase in ROI.

03

Advantages of demographic segmentation

01

Easily obtainable data 

One of the prime benefits of demographic segmentation is that demographic data are easily available. Businesses can pull specifics of their choice from government-maintained census data to target their customers. 

02

Straightforward targeting and analysis 

The segmentation tool provides analytical reporting, offering detailed insights on customer behavior, top-performing campaigns, and more.

03

Cost-effectiveness 

Demographic segmentation is cost-effective, especially when using census data, resulting in significant profits compared to the expense.