What are demographics and why do they matter? Demographics are the statistical characteristics of a population and are used in many different disciplines. They include things like race, gender, age, employment, home ownership, location etc. Demographics are about the population and culture of a region.
Understanding demographics is important in understanding who your customers are and who you customers could be. When you decided to start a business or purchased an existing business you must have thought “who are my customers?” For every demographic there is a way to market to them. Would you create a marketing plan the same way for a senior as you would a teenager? Would these 2 demographics purchase the same product?
Sometimes we don’t think of customers as a demographic but when you start to think about customers as demographics you start to change the way you think. If you break down your customer base or potential customer base into demographics you might be surprised as to who your customers really are. By creating a demographic profile of your customers you can create a marketing plan that identifies with the right groups.
Currently you may think your best customers are the customers in a certain age group – this may be the demographic you are marketing to. But perhaps it’s not age that is the true demographic but another demographic that you hadn’t considered – like the marital status, ethnic status, financial status, education level, or a combination of these demographics. Until you take a closer look you won’t know the actual demographic you are targeting.
Once you know the demographic you are selling to what other demographics do you want to sell to? If you sell children’s products are you only marketing to parents, or are you marketing to grandparents, aunts & uncles, caregivers etc. Have you exhausted all potential demographic possibilities? Are there opportunities to include other ethnic groups, location opportunities – an online store, are you marketing to all the demographics you can or are you missing out?
Looking at the demographics of your current customer base will help you analyze who your customers really are and this could help you find more customers like them and help you determine who else you want to market to. Start by creating a record of your customers, sometimes we think we know who our customers are but it isn’t until we have it in writing that we have actual proof. You may be surprised to find that the 30 year old female you sell to is actually a teacher that is doing the purchasing, the sale has nothing to do with a 30 year old or a female it’s the teacher who is your actual demographic. Therefore your marketing plan should be tailored to teachers and not 30 year old females like you thought.