By: Alejandro Martinez, Market Intelligence Strategist
It may seem crazy that in the era of big data there are companies that still rely exclusively on demographic data to reach and connect with their target audience. While demographic data is important, it’s only part of a much larger equation to truly understand the mindset of current and future consumers. Nowadays you can get various types of data, including: location, behavioral, purchasing, and social, just to name a few. Data is a crucial component of effective marketing, and it will become more important as our world becomes more digital.
Using Data To Reach Consumers: It makes more sense to reach people that are active in your category rather than throwing a wide net and focusing on a specific demographic group (for example, Millennials). From a media perspective, focusing solely on demographics is an “incredibly wasteful and inefficient way to do business.”
Using Data To Understand And Connect With Consumers: The best way to build a more accurate portrait of your consumer is through data. To effectively connect with your current and/or future consumers, you need to know much more than just their age, gender, and ethnicity. You need to get a glimpse of their interests, lifestyle, shopping behavior, digital life, and how they influence or are influenced by others. Only when you marry demographic, psychographic, behavioral, and purchase data is when you can effectively connect with your audience.