Enterprises go to great lengths to align marketing efforts in an effort to maximize desired business outcomes. This is exactly where marketing optimization steps in. Marketing optimization is often performed on each individual marketing tactic, ensuring that these tactics are tailored to the overall marketing strategy, allowing companies to use their time and resources more efficiently.
One of the biggest challenges in marketing optimization is targeting consumers who are most likely to become customers - the whole goal of all marketing is to "get the right message, to the right person, at the right time." For example, if 80% of customers range from 20-35 years old, this would be the target segment, while spending time and money on an older demographic would be wasteful.
The key to creating a successful marketing strategy is dividing the larger market into unique segments, catering each to their individual needs. Identifying and targeting the right prospects often comes down to demographic data. Demographic data contains information about groups of people according to certain attributes such as age, gender, and location. It can also include socio-economic factors such as occupation, marital status, and income. Demographic data and interests belong to some of the most important statistics in consumer analysis and targeting.
The demographic segmentation method is one of the most commonly used because it’s easy to acquire relevant data through services like EveryoneAPI’s reverse phone append solution. It’s also considered by many businesses to be the most cost-effective way to divide a target market. Using demographic segmentation, companies reduce the risk of running campaigns to uninterested consumers, which improves the Return on Investment (ROI) by optimizing resources, time, and budget.
What does demographic data tell us? There are many different scenarios where demographic data is useful for marketing optimization by answering questions like:
- What groups of users are buying?
- Which of these groups provide the most revenue?
- How can advertisements be targeted to these groups in the most effective way?
Here are some of the top variables used today, along with some demographic segmentation examples.
Age: Age is the most basic variable of them all, albeit the most important due to consumer preferences changing with age. Almost all marketing campaigns target age-specific audiences. Not only do age groups and generations vary in their buying habits, but also in how they respond to advertising. Each have distinct ways of speaking and often spend their time on separate platforms. For example, millennials may spend most of their time on social media, while seniors prefer their email inboxes.
Gender: Men and women generally have different likes, dislikes, needs, and thought processes. For instance, few men apply makeup, most women don’t wear boxers, and women typically are more likely than men to donate to charitable causes.
Income: If people can’t afford the product or service, there is no point in targeting them. Income targeting provides a measure of the audience’s buying power. Many companies use this data to sell different tiers of the same product, based on income level. For instance, airlines have multiple classes of service: economy, business class, and first-class.
Housing: Understanding whether a person is a homeowner or renter is a critical indicator for markets such as home improvements and insurance. For example, targeting a renter with a window replacement product has little chance of success.
Many of these attributes and more are attainable by using EveryoneAPI. By simply providing the telephone number, the following demographic data is readily available from trusted, reliable sources:
- Birthday (month & year)
- Homeowner / Renter Indicator
- Length of Residence / Current Residence
- Year Home Built
- Wealth / Estimated Household Income Range
- Marital Status
- Charity Donor
- Level of Education