media update’s Nakedi Phala takes you through the benefits of demographic versus behavioural segmentation. 

The most important aspect to consider when looking to use either of the two, or whether you should use both, is asking which will better cater to your brand’s current and prospective audiences. The winner will depend on what works for your brand. 

Let’s dive into it to see which strategy wins:  

ROUND 1: Demographic builds lasting relationships 

If you want to reach current and potential consumers on an authentic level, then demographic segmentation is the way to go! 

This approach offers personalised marketing, which then creates deeper customer loyalty. How? By dividing the target market into groups based on their income category, gender, age and region.

These relationships also tend to last longer. This is because you know more about them, meaning you can better align your offerings with their needs, and they’re able to identify with your products or services. 

This all leads to consumers using your brand offerings for a longer period of time. 

ROUND 2: Behavioural segmentation can predict consumer decisions 

With behavioural segmentation, you’re acquiring data that can help you predict future patterns from audiences. 

With insights that detail with a consumer’s buying and purchasing behaviour, you’re able to respond to your campaign. You’re also able to determine which services to offer and which not to offer. 

ROUND 3: Demographic offers target marketing 

When we talk about a marketing tool that hits the bullseye … We’re talking about demographic segmentation. Why? It allows you to get precise with your marketing strategy. 

For example, you’ll know more or less how much money you will need for a campaign. And, you’ll be able to optimise your resources and have a clearer perspective of future advertising campaigns. 

With this specific type of segmentation, you’ll know the age group(s) you’ll be targeting, and thus, you won’t waste time with people that you know wouldn't be interested in your brand’s offering. 

ROUND 4: Behavioural segmentation allows for a customer journey experience 

A marketer is able to gauge the behaviours of individuals or groups during the purchasing phase (the funnel), which is also known as customer lifecycle marketing. 

During or after this phase, you’re able to improve offers and build messages based on the buyer’s activities during their journey. 

For example, you’re able to gauge the customer’s evaluation; their taste in quality of products (preference) and their purchase — how much they are willing to spend. And if they’ve spent money at your company before, you’ll be able to offer them products within that price range in their next buy as they are completing or have completed a purchase. 

ROUND 5: Demographic data is easy to obtain 

Nothing makes a marketer’s life easier than having access to data that can help them improve their marketing strategies.

For example, a convenient place to find demographic data will be under Statistics South Africa, which is thoroughly researched and obtained, and readily available. 

You can also conduct your own data collection in other ways, such as conducting interviews, online, via social media voting polls, email and in stores during product promotions. 

ROUND 6: In behavioural, you understand spending habits 

It offers you knowledge on ways consumers spend their money; where, when and how. Their spending habits help classify them into groups that you’ll be able to target according to their spending behaviours.

Here are points to consider that will help you know who (and when) to target based on preferences: 
  • Which consumers buy online often versus those who prefer to buy in person.
  • Those who prefer to use the store credit and those who prefer to buy cash. 
  • Those who like the sale rush and those who have a habit of buying during random times. 

So who wins? 

It seems the old school demographic segmentation has thrown some classic punches while the popular behavioural segmentation takes the title! 

It’s pretty clear that both behavioural and demographic segmentation have their own benefits, it all depends on the consumer you want to attract to your services or products. 

Which approach do YOU think is best? Behavioural or demographic? ? Let us know in the comments section below. 

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Have you noticed how colours are often used to describe feelings? This can actually have an impact on your marketing. Learn more about  The colourful world of brand psychology here.