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The importance of demographics

The importance of demographics

Demographics are important so that you can understand how customers search for information and purchase products and services online.

For example, income and cultural factors may impact how your target customer or consumer uses technology. Do they have access to smartphones and tablets on which to find your business? Where do they live? The physical location of your customers or consumers may be impacted due to the speed and coverage of the internet in their area. These are just a few examples of how demographics may impact your online business.

Demographics are also important as they are measurable characteristics. For example, it is easy to find out how many people are aged between 18 and 24 years, and how many people live in a city or town etc. Being able to measure such characteristics allows you to identify the number of people to which you could potentially target your products or services.

Demographics are a helpful base to start profiling. However, demographics do not tell the full story.


Activity

As a customer, how do businesses see you?

Think about the last significant purchase you made and your demographic characteristics of gender, age, physical location, education level, employment status, marital status, income, and cultural background.

Discuss how your demographic profile may assist the seller of the product to attract you to their business. Don’t forget to tell us what product you are discussing.

Post your thoughts in the comments area.


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This article is from the free online course:

Online Business: Customer Profiling for Success

RMIT University

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