Customer Profiling Under Demographics

Customer Profiling Under Demographics

November 26, 2014

Demographics are the quantifiable features of a stated population, such as age, gender and income that are used to put together data so as to identify markets for their goods and services. Demographics help you identify who your customers are, where they live, and how likely are they to buy your product or service. By studying your customers through demographics, one can identify the changing needs in the market and evolve accordingly to leave no room for marketing errors.

An accurate description of your Customer:

Customer profiling services help you create descriptive segments of your customers. Each segment has specific defining characteristics. A customer segment is not as simple as applying a demographic label, such as women of age 30-50 or businesses with larger revenue. These descriptions alone won't tell you enough about your customer.

Lets brief some examples of all the variables of demographics.

Age- Taking the age factor into consideration is the first and the most important step of customer profiling. It is based on the belief that a consumer’s needs and desires change as they age. For example, a well-known skincare brand, “Olay” has attempted to shrug off its competitors by targeting middle-aged women.

Furthermore, in the advertisement of Torex cough syrup, the scene is directly communicating with the people of old age. As a cough relief product, it can be expected to have more demand in such age groups.

Gender- Men are from mars and women are from Venus. The taste will always be different. Where men might want the latest in technology, women desire the latest in Fashion. There are several products, which are gender focused such as clothing, accessories, footwear and automobiles even. Above shown “Heineken’s screaming commercial” is a perfect example of gender focused advertisements.

Income- Mercedes, Ferrari, BMW; all these cars have customers who are much more quality and luxury conscious than the users of lower income car brands. Of course, the customers with higher income would be the target group of such products. Similarly, in FMCG, you will see many brands and products, which are targeted towards different section of customers. These customers are divided on the basis of their income and purchasing power.

Education- The level of education an individual has had greatly influences his buying decisions. If your product or service has much to do with knowledge, your target audience group will relate to highly educated people. As an example, a product like “Intel core processor” has a clear target on the higher educated audience.

Moreover, education and income are corelated. The more educated a person is, the greater income he earns; thus more will be their purchasing power. Also consider whether they are urban, or rural, as it again helps define their education level. Let us take an example of the commercial of “devdarshan dhoop”. It is targeting less educated people with a simple message, “Subah jalaao..Sham jalaao, Devdarshan dhup” in a language they are familiar with.

Occupation- What occupation do most of your customers hold? Is their occupation a major issue? Professional managers, business owners, craftspeople, farmers, homemakers, the unemployed, the retired masses and students are examples of major categories of various targeted customer profiles based on occupation. Ideally, a company CEO will buy luxury cars and subscribe to a golf club membership. Similarly, a teacher will purchase books, papers, pencils as well as other such lower-priced products.

Effectively employing the power of the above stated demographics it is possible to successfully conduct customer profiling which plays a crucial role in understanding the customer needs and popular market trends to perfectly pitch the online marketing strategy.

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