Demographics is Important for Customer Retention

Successfully Marketing While Keeping Demographics in Mind

Marketing to customers of different demographics is simpler than it looks.

Consumer demographics are broken up into different categories: millennials, generation X, baby boomers, and the silent generation, the elderly (“15 Strategies For Marketing..”, 2015).

Understanding these various types of people and their income levels, age and ethnicity is very important to successful marketers today (Mansfield, 2014).

Millennials are a very mobile generation, and work hard to ensure that their peers are up-to-speed with each other. They may be impulsive, but are able to score great business deals when they need to. Generation X is more reserved and hard-working, and prefer to search for products carefully, and work towards applying discounts. The silent generation, who were born between mid-1920s and 1945, don’t tend to spend that much, having a traditional mentality. Besides age, these demographics are divided by gender, income, and ethnicity. Consumers who have more disposable income, or who are rich, are better targets for marketers selling clothing and accessories(“15 Strategies For Marketing..”, 2015). Understanding demographics creates successful outcomes for companies that wish to acquire long-term customers (Nelson, p. 4).

In her book, “The Transformational Consumer,” Tara Nelson talks about transactional marketing versus transformational marketing. MyFitnessPal, the world’s largest digital health company, started with a small tiny orange logo of a “tiny dancer”. It was catchy, cute, and motivational. The tiny dancer grew to a full-fledged app with 45 millions users in over 18 months, without any paid advertising (Nelson,  p. 2).

What?!? How is this possible? 

MyFitnessPal was smart. It didn’t work hard to acquire customers relentlessly like some marketing companies. They won over their consumers by caring about their humanity, and this was extremely influential in winning over transformational consumers, that, well, cared about being “transformational” (Nelson, p. 3).

Humanity?!? In Marketing??

This is partially because people get sick of being treated like a business transaction, and getting hassled by “tit-for-tat”, stressed-out marketers trying to reach marketing goals by buying their consumers every week, day in and out, like a bad, endless arts and crafts project (Nelson, p. 4)

Marketers finally understood that consumers were smart, instead of trying to buy them out. A picture of our victim (the average consumer) below.

demographics

Marketers now understand that their consumer is a human being, an individual who has multi-faceted needs, often because of his or her place in society. For example, women living on a low-income aren’t going to gush over a daily influx of ads for expensive makeup, shoes, and clothing every week. Truly competitive marketers realize that time and money spend on that type of endeavor is better spent elsewhere.

Understanding the individual consumer’s demographic background is important for marketers in deciding where to create customer engagement, and customer retention. (Nelson, p. 4).

Marketing based on demographics is important in 2017. Everyone is a different, and unique individual, with different weaknesses and strengths. Marketing professionals can’t hope to make progress in the upcoming years with the same played out tactics.

Understanding demographics, consumers’ socioeconomic backgrounds, and consumer motivation is important to marketers today, who are working towards creating and improving engaged, dedicated customers. Today, marketers have advanced consumer analytics tools to reach realistic and sustainable goals.

Look into Salesforce, a leading marketing analytics software, and learn about how your team can get trained!

demographics

Salesforce is one of the leading tools that helps fortune 500, and leading companies reach out to large audiences.

See case studies on their website that show how different companies have effectively campaigned their product or endeavor to millions, nationwide. Amazon has used Salesforce to to reach millions of people across the globe.

demographics

Similar marketing analytics software..

  • Marketo

  • Marketing360

demogra

  • MarketingOptimizer

demogr

Join goElaborate today, an digital media company and co-working space, and meet professionals interested in the latest and greatest, progressive technologies bleeding into 2018.

References

Dani Mansfield. “Market Segmentation: Know Your Audience”, 14 July 2014, https://builtvisible.com/understanding-customers-market-segmentation./. Accessed 3 October 2017.

“15 Strategies for Marketing to Different Generations”, 19 February 2015, www.smarthustle.com/15-key-strategies-marketing-different-generations. Accessed 3 October 2017.

Nelson, Tara-Nicholle. The Transformational Consumer: Fuel a Lifelong Love Affair With Your Customers By Helping Them Get Healthier, Wealthier, and Wiser. Berrett-Koehler Publishers, Inc, 2017.