Demographics help you identify the individual members of your audience by key characteristics, wants, and needs. Before conducting demographics research, you must determine if your customers are individuals or businesses. This guides variable selection and information gathering. For example, If the customers are individuals, variables such as gender, age, income, etc. will guide information gathering. However, if companies form your customer base, variables such as the industry, sales, and the number of employees become important. Here are some benefits of doing effective demographics research and analysis:
Importance of Market/Customer Segmentation
Customer segmentation is the process of dividing a target market into smaller groups, based on shared characteristics including demography, psychography, geography, behavior. Your ability to identify and group your target market by lifestyle, hobbies, location, habits, etc., will help to inform your promotional and marketing strategies. Market segmentation will help you customize your product/service, distribution channel, pricing, and marketing message and channel, to grab the attention and meet the specific needs of a narrowly defined customer group.
Psychographics data is just as important as demographics data. Coupled together, they will help you get a clearer picture of your customers’ needs and what moves them to take action to satisfy those needs. Simply put, Demographics defines WHO your buyers are, while psychographics explains WHY they buy.
The following databases are good places to start finding consumer research data including but not limited ton demographics and psychographics data: