What are the different customer demographics? How can you define your customer demographics?

Whether you’re a big tech company or a small local business, finding and understanding your customer demographic will not only help you grow your business but allow you to market your product or service more efficiently!

But what exactly is the customer demographic and what are the different demographics?

To quickly explain, customer demographics are categories or characteristics you put your customers in.

Customer demographics are 1 of 4 categories or segmentation you can use to define your customers. The 4 types of customer segmentation are:

  • Demographic
  • Psychological
  • Behavioural
  • Geographic

If you want to learn more about the different customer segmentation, you can read our guide here: How do You Identify Your Target Market

Now let’s explain what customer demographics are!

What are customer demographics?

Customer demographics is one of the more popular ways used for market segmentation.

Customer Demographic segmentation refers to defining your customers from observable characteristics. You should use the following traits to define your customer demographic:

  • Age
  • Gender
  • Income
  • Education
  • Race
  • Family
  • Religion

Customer demographic segmentation is a great way to give you a basic understanding of who your customers are.

For example, say you're a business that sells clothes. Who are your clothes targeted towards, males or females? What age group are the clothes for, babies, teens or adults? When you define who the clothes are made for, you can tailor your marketing and brand that will appeal to that audience.

Why are customer demographics important?

Customer demographics are important because it allows you to properly brand and market your products or services. It will allow you to properly budget your marketing campaigns

Understanding your customer demographics is important to help improve the following aspects of your company:

Building a Brand

Knowing your customer demographics will help you build a brand that can relate to your target market!

For example, male hygiene products are branded differently than female hygiene products. They may be by the same company, but their products will be branded differently.

Knowing your customer demographics will help you build a brand story, brand reputation and brand image that appeals to your audience.

Business Plan

Your business plan is a key part of planning for the success of your company. If you’re applying for a business loan, you will need to present a business plan with your customer demographics!

Not only is good for you to figure out your customer demographics when applying for a loan, but it’ll give you a solid foundation of how to price, market, and sell your product or services.

Marketing

When you define your customer demographics, you can narrow down your target audience. You’ll be able to properly define your advertising campaigns, marketing materials and sales efforts!

Say you’re a local hair salon that does woman’s haircuts, and you’ve decided to spend some money on social media and PPC advertising.

Do you know what part of the city you want to target? Or how about the age?

Social media and PPC advertising allow you to define who you want to target based on their age, location, gender and even interests! This will allow you to spend your ad money more efficiently!

Closing thoughts

Understanding and defining your customer demographics will give you a solid foundation of how to price your products and services, how you’ll market them and find any threats or weaknesses that may come up.

Understanding your customer demographics is just one target market segmentation. To fully understand your customers, you should take the time to how they behave, act, and where they’re located!