Target your ideal customer using demographic data

by | Oct 12, 2018 | Business, Features | 0 comments

Simon Beer of Big Wave Media explains why, whether small or large, businesses need a targeted approach to your customer. Using demographics gives you a head start in understanding your market
Demographic data is statistical data collected about you customers, such as age, gender and income.
It is usually used to research a product or service. And it looks at how well it is selling, who likes it and/or in what areas it is most popular.
Methods such as sample surveys and questionnaires are great ways to collect data.

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When it comes to consumers, there are very few things that we can predict. But, by using demographic data, businesses can understand why customers make choices.
Is it because of where they live, their age, their gender? This understanding may enable businesses to forecast products in the future. It will help predict how customers will react to them.
Demographic data is an excellent opportunity to make sure your products are the ones that your customers expect. It allows you to ensure the service levels and facilities are right.?
It also helps you to gain a great understanding of your local customer-base. Are they wealthy? Elderly? Used to the finer things in life?
Once you have this data, you can do several useful things with it.

Group your customer based on variables

By grouping consumers using demographic data, businesses can understand each customer segment. They know what it wants and how it wants it.
This can help your business to market products based on the consumer groups they are targeting.
Are your customers more likely to buy a pot if it has a delicate feel? Or are they more likely to go after the blocky, industrial-looking versions?
Are you offering enough houseplants in your store for the millennial generation?

Determine the next step for your growing business

By understanding what your customers are looking for, you know whether customers would like a new location. If so, how far they be would willing to go out of their way to get to it.
Knowing what your customers want can also help you avoid making costly mistakes.
Is it worth adding an extra space to your store to house the products in the garden lighting category? Is this a growth area that you are focusing on moving forward?

Customise products to specific consumer groups

Demographic data can be used to customise products by finding out what consumers want. You can then change the offering to fit.
The whole idea of customising products would be to save time and money on products that aren?t wanted. Or they don?t fit your consumer specification.
It?s all well and good surveying your customers, but it is by acting on the results that will make the biggest difference to your business.

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