What Is Demographic Segmentation, & How Do You Do It?

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One of the greatest music videos ever made (according to MTV) was released within 1990, winning Best Choreography and the hearts of enthusiasts and parody-creators alike: “U Can’t Touch This” simply by MC Hammer. This hip hop video (and those harem pants) made reverberations that are felt throughout pop lifestyle today. But why was I talking about it on HubSpot’s Marketing blog?

Within 2020, Cheetos bought a Super Bowl ad spot to market their brand, and they knew it had to resonate with as much of their target market as is possible, which was most likely Gen Xers and older Millennials.

Before you dive further into this awesome article, take a gander at the movie below:

If you laughed in the absurd idea that MC Hammer came up with the lyrics for “U Can’t Touch This” whilst his Cheetos prevented him from touching the keyboard, this particular commercial is for you. When you have no idea what I’m talking about, then you’re not area of the audience Cheetos was targeting with the ad.

Now, in case their target market consisted of young kids or older adults, they probably wouldn’t have gone with this direction. Fortunately, they had a strong tool at their disposal: demographic segmentation.

Demographic segmentation can also optimize your resources and time since distributing personalized marketing text messages to each slice of your target market will resonate with increased people and lead to a lot more conversions than spraying a generic message to your entire target market.

Why is demographic segmentation important?

Demographic segmentation enables you to provide a more personalized encounter, complete with messaging that much better resonates with your audience.

Essentially, you’re able to be more specific with pop culture references and slang to elicit a certain emotion. You’ll also be better equipped to craft the topic of your messaging as well because the wishes, needs, fears, and aches can vary from segment in order to segment.

It comes down to this idea:  

When you speak to everyone, you speak to no one.
– Meredith Hill

According to Accenture, “91% of consumers are more likely to store with brands who understand, remember, and provide relevant provides and recommendations. ” Quite simply, when a prospect sees on their own in your messaging (because it’s actual personalized to them), they may be more likely to react positively.

This doesn’t just apply to ads. In fact , MailChimp found that open up rates and click rates soar when using segmentation within email marketing.

However , it’s important to become extremely intentional about the way you use demographic segmentation inside your marketing. After all, you don’t wish to:

  • Make false assumptions about a particular segment
  • Alienate current or even potential customers
  • Stray too far from your brand voice
  • Fail to monitor trends that are happening along with other segments

To learn how most manufacturers segment their target market, have a look at some examples of demographic segmentation factors that can be used:

Demographic Segmentation Examples

1 . Geography

Geographic segmentation slices up your target audience based on their geographic area. Since people have different needs and interests across geographies, like the need for cold weather coats in Minnesota or the demand for swimwear in South Florida during the winter, it is important to understand exactly how your target market’s different weather, landscapes, and cityscapes effect their preferences.

2 . Age group

Age segmentation slices up your target market by specific age brackets or generations, like Generation Z, Millennials, and Middle-agers. The people in each of these organizations grew up during the same period, encounter comparable experiences these days, and share similar traits, routines, and opinions, so it’s crucial to distribute personalized campaigns catered for each generation.

For instance, targeting Gen Xers using a nostalgic ad about The Princess Bride-to-be might get an outpour of compliment, but targeting the same advertisement to Gen Zers may not even get a mention on Twitter.

3. Education

Schooling segmentation slices up your target audience by school, area of study, and degree. A lot of brands target by education mainly because most people have deep feelings of loyalty for their alma mater.

In fact , BuzzFeed harnesses education segmentation to write content articles about a specific college’s information that only their alumni would know. And by writing these types of articles about nearly every college in the United States, they can relate with the majority of people who went to college in the country.

4. Occupation

Job segmentation slices up your target market by job function, job seniority, and job name. A lot of B2B brands target their audience by occupation because they need to attract specific types of professionals who have the authority to make buying decisions on their team or from their company.

5. Income

Income segmentation slices up your target market by income variety. By knowing how much discretionary income your potential customers possess, you can market to the folks who can actually afford your service or product, set your prices according to their income, and style pricing tiers for each slice of your target market.

Getting Personal

Nowadays, generic, spray-and-pray marketing and advertising campaigns don’t fly along with consumers anymore. If you can not relate to each segment of the target market, then you might as well pause all your campaigns.

However , when you can harness the power of market segmentation, you can create personalized marketing campaigns for each slice of your target market and resonate with them as much as MC Sludge hammer did with Cheetos’s target market.

Editor’s note: This post was originally published within March 2019 and has already been updated for comprehensiveness.

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