What is demographic data?
Demographic data is statistical data collected about the characteristics of the population, e.g. age, gender and income for example. It is usually used to research a product or service and how well it is selling, who likes it and/or in what areas it is most popular. Data can be collected through methods such as sample surveys and questionnaires.
There are few things that we are able to predict when it comes to consumers. But by using demographic data, businesses can understand why customers make choices, is it because of where they live, their age, gender? It may enable them to forecast products in the future and how customers will react to them.
Census data – a census study is used by demographers to collect data from every member an organisation is targeting, so this can be very difficult and impractical as it is expensive and time-consuming. Demographers find this method difficult, as when dealing with large numbers of people you are not guaranteed to get all the surveys/questionnaires returned. This would be a waste of time which could have been spent on a different more reliable method. But if the reply rates are high, the census method would be a great way of collecting a high amount of data.
Uses of demographic data:
1) To group customers based on variables including age, gender etc.
By grouping consumers using demographic data, it allows businesses to understand each segment, what they want and how they want it. It will help the business to market each product differently based on the consumer groups they are targeting.
2) Businesses can use demographics to determine the next step of their growing business.
By understanding what their customers are looking for, they would be able to determine things such as; would customers like a new location and if so, how far would they be willing to go out of their way to get to there. They could also help to avoid making costly mistakes and this will help to push the business forward.
3) To customise products to specific consumer groups
Demographic data can be used to customise products by finding out what is wanted by consumers, and changing the existing product to fit the desired outcome. The whole idea of customising products would be to save time and money on products that aren’t wanted or that don’t fit your consumer specification.
Give Bigwave media a call on 01392 492380 to discuss how demographic data can revolutionise the way you target your customers.
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