Why is customer demographic information important for businesses
Posted: Sat Apr 19, 2025 4:14 am
Customer demographic information allows companies to directly target interested market segments and send the right message to the right audience.
When you know your customer base, you can better define the target markets for your products and services. You'll work more efficiently and avoid wasting your marketing resources.
Discovering the best target audience for each product also helps your company achieve strong product-market fit. This way, your teams can ensure greater personalization throughout the entire customer journey .
Personalization has many rewards in business, particularly as a key to successful marketing strategies. McKinsey research found that companies focused on personalization generate 40% more revenue from tailored marketing activities.
McKinsey customer demographics
There are other benefits of segmentation and personalization beyond business benefits.
Targeted campaigns help consumers quickly find new products, improving customer satisfaction from the start.
Imagine you're shopping for bedroom furniture for your soon-to-be college-aged son or daughter. If a supplier clearly targets parents of children who have just graduated from high school, you're more likely to find what you're looking for.
Additionally, PwC’s “Global Consumer Insights Pulse Survey 2023” revealed that 82% of US respondents are willing to share personal data to improve customer experience .
Collecting demographic information about your customers can further help your business by:
Product viability. Knowing the size of your target market can tell you whether your new product has enough interested buyers (especially important for local businesses).
Support for product or brand positioning. Developing your value car owner database proposition and positioning your brand is easier when you understand what matters most to your audience.
Ensure better advertising investment and preserve your marketing budget . Designing targeted ads that respond to specific needs means you can spend your money on messages that will reach your target audience.
Using customer demographic information for segmentation and personalization allows your business to drive desired consumer behaviors, such as gaining new customers and increasing retention .
Recommended reading
Customer-centric approach: How to prioritize the buyer to drive business growth
Customer demographic tools to consider
Customer demographic information is only as valuable as what you do with it. There are tools that help you gather this information, others that make it easier to apply, and some that integrate everything so you can do both.
Here are three tools to consider when collecting and applying customer demographic data.
When you know your customer base, you can better define the target markets for your products and services. You'll work more efficiently and avoid wasting your marketing resources.
Discovering the best target audience for each product also helps your company achieve strong product-market fit. This way, your teams can ensure greater personalization throughout the entire customer journey .
Personalization has many rewards in business, particularly as a key to successful marketing strategies. McKinsey research found that companies focused on personalization generate 40% more revenue from tailored marketing activities.
McKinsey customer demographics
There are other benefits of segmentation and personalization beyond business benefits.
Targeted campaigns help consumers quickly find new products, improving customer satisfaction from the start.
Imagine you're shopping for bedroom furniture for your soon-to-be college-aged son or daughter. If a supplier clearly targets parents of children who have just graduated from high school, you're more likely to find what you're looking for.
Additionally, PwC’s “Global Consumer Insights Pulse Survey 2023” revealed that 82% of US respondents are willing to share personal data to improve customer experience .
Collecting demographic information about your customers can further help your business by:
Product viability. Knowing the size of your target market can tell you whether your new product has enough interested buyers (especially important for local businesses).
Support for product or brand positioning. Developing your value car owner database proposition and positioning your brand is easier when you understand what matters most to your audience.
Ensure better advertising investment and preserve your marketing budget . Designing targeted ads that respond to specific needs means you can spend your money on messages that will reach your target audience.
Using customer demographic information for segmentation and personalization allows your business to drive desired consumer behaviors, such as gaining new customers and increasing retention .
Recommended reading
Customer-centric approach: How to prioritize the buyer to drive business growth
Customer demographic tools to consider
Customer demographic information is only as valuable as what you do with it. There are tools that help you gather this information, others that make it easier to apply, and some that integrate everything so you can do both.
Here are three tools to consider when collecting and applying customer demographic data.