The Complete Guide to Demographic Segmentation in Email Marketing
Demographic segmentation is a marketing strategy that divides audiences into smaller groups with shared characteristics such as age, gender, occupation, etc.
Segmenting email marketing subscribers allows you to speak directly to their interests and desires.
By interpreting consumers’ basic traits, you can increase relevance in emails, ultimately leading to better engagement and conversion rates.
We’ll explore how to effectively divide your email list, craft personalized messages, and measure the impact of your campaigns.
What is Demographic Segmentation?
Demographic segmentation means grouping audiences into targeted markets to increase relevance and personalization.
Consumers are usually divided based on:
- Age: Millennials, baby boomers, young adults, etc.
- Location: Urban, sub-urban, rural.
- Gender: Male, female, non-binary.
- Income: Low-income, middle, and high-income.
- Education level: High school, diploma, graduate.
- Family size: Singles, couples, and families with children.
- Ethnicity: Race, culture, nationality.
Aggregating this customer data can help you send tailored email marketing campaigns that speak to each consumer’s core needs. For example, youngsters in a city may look for trendy clothing, while mature audiences in regional areas might prefer classic styles.
Comprehend this distinction to help you micro-segment your email list. Smaller groups allow you to focus on the specifics and build targeted email campaigns.
Besides demographics, you can group audiences using behavioral or psychographic segmentation for better marketing results. If you’re new to email segmentation strategy, consider reviewing our detailed guide on customer segmentation examples and models for a better grasp of the subject.
Why is Demographic Segmentation Important in Email Marketing?
Segmenting audiences helps you learn more about their preferences, eventually, enhancing user experience. Figuring out the best time to send emails with relevant messages increases the chances of them taking the desired action, such as purchasing a product or scheduling a call.
Here’s a table summarizing how demographic segmentation gives you precise information.
| Reason | Benefit |
|---|---|
| It improves relevance | Emails resonate more with specific audiences, increasing overall engagement |
| Increased conversions | Targeted messages with clear calls to action drive more sales |
| Enhanced personalization | Demographic data allows for personalized greetings, product recommendations, and content |
| Boost in customer loyalty | Relevant and personalized emails foster brand loyalty and better user experience |
| Reduced unsubscribe rates | Customers are less likely to unsubscribe from interesting and valuable emails |
In addition, targeted calls-to-action clearly tell customers what you want them to do next. This increases your email marketing conversion rates and fosters long-term connections.
You can divide your email list based on one demographic variable or a combination of variables. Let’s analyze the standard variables associated with demographic segmentation.
Different Types of Demographic Segmentation
Dividing your audiences by demographics isn’t a one-time task — you may find yourself leveraging a mix of criteria to group them. Again, this could vary with circumstances, especially when building integrated email campaigns.
Pay equal attention to every aspect of the demographic segmentation. For instance, women’s shopping habits differ from men’s, regardless of their income and lifestyle. By tailoring your email content based on their preferences, you can maximize engagement and revenue.
Focus on the following primary factors usual in demographic segmentation.
1. Age
Age is the most common attribute used to determine people’s needs, buying behavior, and preferences. For example, Gen Z and millennials may respond well to visually appealing content, while baby boomers may prefer detailed text-based information.
Your target market will usually contain up to three target audiences. This helps cater to different customer segments and maximize revenue.
For instance, if you sell flowers, your target audiences can fall under one of the following categories:
- Young adults: These people usually purchase flowers for birthdays, graduation, anniversaries, or Valentine’s Day.
- Middle-aged people: They have different needs for purchasing flowers, such as corporate gifts, home decor, or Mother’s Day.
- Older people: This target audience can buy flowers for milestone birthdays, retirement parties, or anniversaries.
Each age group has unique purchase intentions and behavior, so tailoring your marketing efforts can significantly improve your email campaign metrics.
2. Gender
Remember we spoke about how men and women have varied shopping goals and preferences. Studies suggest that men spend 75% more than women with in-store purchases. The same study reveals women’s growing preferences for eco-friendly products, moving their ideals away from ‘fast fashion’.
Identifying these key factors will help you:
- Recommend relevant products: Knowing gender-based preferences allows you to send highly relevant product recommendations to email subscribers. For example, you’ll typically send more offers and promotions to women because they are likelier to purchase items on sale. Commonly, men stop shopping after finding the first workable product. Knowing this difference will help you craft messages that resonate with each gender.
- Tune your messaging style: Adjusting the email tone and style gives you a freeway to enhance the brand experience for each gender. Women are more likely to engage with emotive language than men. Whereas, men usually prefer a straightforward tone.
- Tailor the layout and visual appeal: Your email design principles and visual storytelling are powerful ways to engage users, especially women. When they see how your products can elevate their lifestyle, they are more likely to respond positively. Males are generally focused on the result instead of the process, so they don’t really worry about what they see.
- Customize topics and interests: Knowing the desires of each gender makes customization easier. For example, some women might like beauty and wellness email newsletters, while others could prefer tech and fitness series. Similarly, men maybe interested in fitness and skincare regimen. Avoid categorizing genders based on social norms, and focus on their requirements to tailor your messages.
- Tweak holidays and special event messages: Marketing emails can promote gender-specific holidays and events, such as Mother’s Day for women and Father’s Day for men.
3. Income and Occupation
You may sell premium products catering to high-income households or maintain affordability for low and middle-income people. Regardless of your product or service, knowing customers’ income range and occupation will help position your pricing strategies effectively.
This also showcases consumers’ product affordability and spending behavior, allowing you to create hyper-targeted email campaigns with exclusive offers. For example, high-income consumers might be interested in exclusive memberships and luxury vacations, while middle-income segments seek value for money.
4. Cultural Beliefs
Cultural beliefs, such as following dietary restrictions, can have a huge impact on how people view your emails. Incorporating them into your email campaigns can lead to higher engagement and conversions.
Watch out for these common cultural beliefs:
- Religious beliefs: People might consume Halal or Kosher foods on specific occasions.
- Color-based beliefs: Subscribers from diverse ethnic backgrounds may view the same email differently. For example, the color red symbolizes luck and happiness in Chinese culture and is usually associated with excitement or danger in the western world. However, various ethnic backgrounds may associate colors with different aspects. So, this may not be completely true in every part.
- Image-based beliefs: Certain imagery can be offensive to certain cultures. It’s important to verify the information before including them in your campaigns.
- Cultural taboos: Specific topics may be considered taboo in specific cultures. For example, in the UK, asking someone personal questions like their age or earning is considered taboo.
It’s easy to confuse demographic and behavioral segmentation in particular situations as they exhibit similar group characteristics. However, they are different segmentation methods and showcase varied data variables.
The Difference Between Demographic and Behavioral Segmentation
The table below outlines the main differences between demographic and behavioral segmentation methods.
| Aspect | Demographic Segmentation | Behavioral Segmentation |
|---|---|---|
| Definition | It divides customers based on demographic traits | It groups subscribers based on behavioral patterns |
| Focus | It shows who the customers are | This shows how customers behave |
| Criteria | It’s about the age, gender, income, occupation, etc | It’s related to the purchase history, purchase frequency, usage rate, etc |
| Data type | It’s quantitative | Its quantitative and qualitative |
| Use case | It revolves around segmenting customers for a broader product appeal, creating defined promotional campaigns | It focuses on personalized promotions, customer retention strategies, and targeted marketing |
| Example | Marketing luxury cars to high-income individuals | Sending discounts to frequent shoppers |
Keeping these two approaches separate is the best way to satisfy each consumer’s requirements. However, in certain cases, variables may overlap. For instance, you might need to combine income and purchase behavior to understand customers’ motivations.
To prove this point, we’ll review standard demographic segmentation examples for different industries.
Demographic Marketing Segmentation Examples
Depending on your industry and product type, you’ll tailor marketing strategies according to the email customer journey. For example, an email campaign for collegegoers will drastically differ from an email for young professionals.
Below, we’ll discuss common industries and their demographic segments.
1. Demographic Segmentation for the Fashion Industry
Your subscribers can come from heterogeneous backgrounds even though they depict similar income levels. Stick to a single selling point when speaking to your audience segment. For example, emphasize trendy items and discounts for youngsters, while offering classic clothing styles for older demographics.
Consider customers’ gender to offer specific product lines to each type. You may also lay out gender-neutral fashion to increase engagement.
Finally, check for consumers’ income levels to send relevant product emails. Target high-end consumers with luxury clothing lines and highlight price drops for budget-conscious shoppers.
2. Demographic Segmentation for the Technology Industry
Technological products are want-based rather than need-based like clothing or skincare. As a result, consumers can range from ‘spontaneous spenders’ to ‘prudent shoppers’. The key is to divide them as close to their demographic details as possible.
Generally, technology gadget consumers can fall under these categories:
- Function-focused consumers: Consumers in this segment are more likely to prioritize technical specifications and ease of use than other features.
- Spontaneous shoppers: Almost 84% of people make impulsive purchases based on promotions, advertisements, and the availability of items. These consumers weigh availability as the number one factor when choosing technology products.
- Older tech enthusiasts: With older generation turning to social media for recreation, more and more people are adapting to technological advancements.
3. Demographic Segmentation for the Financial Services Industry
Financial institutions are more than ever required to follow strict legal regulations and privacy data laws. This makes it challenging to use subscriber data as and when needed. However, by segmenting the market, financial companies can understand the diverse needs of consumers and cater to their unique wants.
The demographic segmentation in the finance industry can look like this:
- Young adults (18-25 years) seek loans or credit cards. Offering financial literacy along with entry-level investment opportunities can help them grow. Similarly, focus on the needs of the other age groups to increase customer satisfaction.
- Men often prefer high-risk investments, while women seek long-term planning and financial security. Valuing this critical information promotes brand credibility and trust amongst consumers.
- The education levels of your consumers can determine their needs. For example, low-literacy groups might look for basic financial services, while the graduates could seek wealth management and estate planning.
- Married men and women have different financial goals than someone single. Highlighting financial products according to their backgrounds will increase engagement.
Demographic segmentation is a powerful tool that provides insights into your customers’ everyday lives. It’s like reading their minds — by knowing their specific goals, you can provide accurate information and increase brand loyalty.
Many businesses that use demographic segmentation find that it significantly improves their email campaign performance.
These real-life examples of demographic segmentation will likely inspire you to craft yours.
Examples of Businesses that Use Demographic Segmentation
Businesses prioritize customer satisfaction to be more receptive to change. This makes it easier to adapt to the consumers’ evolving needs.
Here’s how companies, from fashion to automobiles, segment customers.
1. Demographic Marketing Segmentation Example #1: Zara
ZARA, a leading global fashion retailer, segments customers based on various criteria to accomplish user satisfaction.
The brand serves different age groups, from children to middle-aged individuals with middle to high-income ranges. It also has different fashion lines for men and women, offering formal and casual wear and accessories.
That level of minute segmentation allows ZARA to focus on the specific needs of each consumer.
For example, in the email campaign example below, ZARA targets men with classic clothing styles. The seasonal marketing approach ensures immediate action to stock up on autumn essentials.
2. Demographic Marketing Segmentation Example #2: Nike
Nike’s target audiences range from teenagers to young adults. The brand handles this difference in age gap and income levels by focusing on gender-based preferences.
For example, Nike’s Mother’s Day email draws this demographic segment with their latest Dunks. The brand taps into the potential of this special day to sell its latest women’s shoes.
3. Demographic Marketing Segmentation Example #3: Tesla
Tesla’s target market comprises individuals with high disposable incomes, aged between 35-60 years. The female demographic is comparatively smaller than male.
The automobile company uses demographic segmentation to target people interested in high-performance vehicles to showcase their status symbol.
Although it targets the high-end consumers, Tesla also caters to middle-income households with the launch of affordable models and price reductions, like the example below.
Likewise, different industries target consumers based on their demographic variables to keep messages tight-knit and personalized.
We hope these examples serve as a starting point to help divide your email list the right way. In addition, follow these best practices and tips for a better outcome from your demographic segmentation.
Best Practices for Demographic Segmentation
It’s easy to assume that all individuals in a demographic group have the same needs. This can lead to ineffective marketing strategies. On the contrary, there’s a minute chance that people belong to different demographic segments simultaneously. Ignoring this overlap can result in a fragmented understanding of your audience’s needs.
To avoid this scenario, be mindful of these best practices during the segmentation process:
- Use accurate data: Ensure the data you’re using is clean and updated. Avoid assumptions based on cultural inferences or stereotypes.
- Abide data privacy laws: Depending on your industry, the data privacy laws could differ. Comply with legal regulations such as GDPR or CCPA while collecting and handling customer information.
- Perform in-depth analysis: Go beyond surface level data and consider other segmentation methods such as behavioral or psychographic to create more refined segments.
- Pay attention to the segment size: Ensure the segment is large enough to consider the nuances but not too broad that makes you lose track of details.
- Watch out for overlapping segments: Be prepared for overlapping segments and develop strategies to address them.
- Prepare a list of KPIs: The key performance indicators (KPIs) help you gauge the outcome of your email marketing campaigns. Focus on the most relevant KPIs for accurate results.
Above all, choose a powerful email marketing platform to send targeted email campaigns to different demographic segments. Look for ESPs that help your business scale without having to pay extra.
Campaign Refinery offers premium tools and features along with transparent pricing.
We’ll tell you more about why our platform is the perfect go-to solution for your segmentation needs.
Combine Your Customer Segments with Campaign Refinery
Imagine a tool that lets you blend different customer segments into a single group.
That is exactly what our latest Audience Groups Feature does — it lets clients choose various segments from their email list and group them for a specific campaign. Plus, it allows you to combine recently engaged and recently added subscribers, maximizing reach and revenue.
In combination with robust segmentation features, our email deliverability system ensures your emails consistently reach subscribers’ primary inboxes.
Our clients have noticed a whopping 600% increase in inbox placement rates after moving to our platform, putting them in the top 1% of the senders.
Want to increase your marketing revenue with premium tools and a friendly support team?
