Not all customers are the same, so why waste your budget marketing to them like they are? McKinsey research shows that 71% of consumers want personalized shopping experiences, and 76% get frustrated when they don’t have them. That’s where demographic segmentation comes in.
But what is demographic segmentation, exactly? We define it as a process that helps you categorize your audience into meaningful demographic groups so you can reach the right people with impactful custom messages.
Businesses across industries are partnering with Experian to power smarter decisions and better results through solutions like demographic segmentation — but what does this look like in action? This article breaks down five real-world demographic segmentation examples, showing how businesses have worked with us to drive measurable success so you can see exactly how it can work for you.
What is demographic segmentation?
Demographic segmentation involves dividing your audience into smaller, more specific groups based on shared demographics like income, education, gender, job, family status, and more to gain a more granular understanding of your brand’s target segments. The better you know your audience, the better you speak to their unique needs — and the more effective your campaigns will be, as you’ll be able to target each segment with highly personalized content that resonates.
For instance, a company might market a new tech gadget to young adults in one way while promoting the same product to families with young children in a completely different way, ensuring the message speaks to each group’s lifestyle and priorities.
Demographic segmentation attributes
Some of the most common attributes used in demographic segmentation include:
Age
Each age group has different wants and needs. A new video game might catch the eye of teenagers, while a retirement plan is more likely to appeal to someone in their 50s or 60s.
Gender
Gender impacts preference for certain products, from fashion to gadgets, so knowing who you’re talking to helps make your marketing more relevant.
Income
Someone with a higher income might be more likely to purchase premium products, while someone on a budget will respond better to discounts or value-based offers.
Education
The level of education a person has can influence what kind of messaging will resonate with them, whether it’s complex or more straightforward.
Occupation
A marketing message targeting busy professionals might differ from one aimed at students or retirees. Occupation can tell you what’s important to a person in terms of their needs and lifestyle.
Family Status
A family with young kids likely has different priorities than a single person or a couple without children. You can adapt your messaging to be more relevant to what matters most to them, like convenience or value.
Benefits of using demographic segmentation
Demographic segmentation offers several valuable benefits for marketers. Here’s why it’s one of the most commonly used and effective ways to target audiences:
- Improved targeting and personalization: Demographic segmentation powers highly customized campaigns so you can cater to different income levels, family structures, job types, and so forth. B2C brands can provide offers based on factors like age, income, and gender, while B2B brands can target by occupation to reach decision-makers.
- Better product and service development: Understanding which demographics use your product or service is a great way to inform future improvements.
- Higher engagement: With highly customized content, you can speak directly to specific demographic groups and increase engagement.
- Cost efficiency: As you target the most relevant segments, you optimize your spending around the most likely buyers and will see better returns.
- Increased conversion and retention: Relevant, targeted messaging leads to higher conversion rates, and when people feel understood, they’ll want to keep coming back.
- Clearer customer insights: Demographic data provides precise, actionable insights for refining your marketing strategy.
- Simplicity and effectiveness: Demographic insights are immediately actionable and easy to implement, which gives you a great starting point for focused campaigns.
When to use other segmentation types
While demographic segmentation provides valuable consumer insights, there are times when other approaches may offer a more effective strategy:
- Your business provides location-dependent services. If you strictly serve a local area, geographic segmentation would be more effective in targeting customers based on location.
- You have access to detailed behavioral data. If you collect data on customer behavior (like browsing history or purchase patterns), behavioral segmentation would allow for more personalized targeting than demographics.
- You’re selling high-end luxury products. While income is a useful demographic variable, factors like values, aspirations, and lifestyle better capture the desires of luxury consumers.
- Your target audience shares similar behaviors, regardless of demographic factors. Behavioral segmentation might offer more insight if your customers engage with your product or service based on shared behaviors rather than demographic traits.
- Your product or service targets specific needs or pain points. Segmenting by need or issue rather than traditional demographic variables would likely yield better results if you’re offering a solution to a particular problem (like a health-related product).
How our customers are using demographic segmentation to produce tangible results
Demographic segmentation is about knowing your audience and using data to create marketing strategies that drive measurable outcomes. Let’s look at some real-world use cases from brands like yours that have been successful in this effort, working with Experian to translate demographic insights into significant business growth.
Use case #1: Identifying customer spending potential to boost growth for a retail chain
Objective
A large retail chain wanted to understand the spending potential of each customer in their stores. Their goal was to uncover and maximize untapped spending potential.
Solution
The large retail chain licensed Marketing Attributes to identify the top demographic factors that drove spending in the retail store the previous year. The four key drivers were:
- Age
- Income
- Family structure (household composition)
- Location/region
Results
By combining these attributes to create custom segments, we uncovered two valuable annual estimates:
- Potential spend: A conservative estimate of how much a customer could spend if they reached the top 20% of spenders within their specific demographic segment (based on data from the highest spenders).
- Unrealized spend: The difference between a customer’s annual potential spend and their current spend. An estimate of how much more they could be spending each year.
These demographic segments provided the marketing strategy the retail chain used to target $1.1 billion in unrealized spend. This revealed how much additional revenue could be captured by targeting the right customers with tailored marketing and offers through demographic segmentation.
Use case #2: Helping a financial institution identify regional DE&I opportunities
Objective
A large financial institution needed help identifying regional diversity, equity, and inclusion (DE&I) opportunities. They wanted to better prioritize their outreach to underserved communities in the Los Angeles area.
Solution
We provided the data and insights to pinpoint specific areas needing attention. We used three key indices to analyze the region:
- Income index: Measured each underserved economic group by comparing the percentage of low-to-moderate income consumers against the entire L.A. area.
- Ethnicity index: Measured the percentage of consumers by ethnicity, such as African-American, Hispanic, Asian, and others, against the entire L.A. area.
- Credit index: Identified potential credit disparities by looking at the average FICO score and the percentage of customers with credit accounts against the entire L.A. area.
Results
Our client received an analytics dashboard to track and report these metrics, providing clear, traceable data to prioritize DE&I outreach. This dashboard helped them measure progress toward more inclusive practices.
Use case #3: Segmenting a health supplement ambassador program for enhanced engagement
Objective
A health supplement company wanted to identify specific segments within their ambassador program to provide better support and increase engagement.
Solution
We developed tailored customer segments to address specific needs and behaviors. These segments included:
- Young and independent: Younger, lower-income singles or starter households who are just beginning to establish their own lives.
- Families with ends to meet: Young and middle-aged families with kids who are budget-conscious, often using coupons and enjoying fast food.
- High-end families: Middle-aged families with kids and high incomes, financially secure big spenders who also give to charities.
- Empty nesters: Older households with no kids who focus on cooking at home and may have more disposable income.
Results
Segmenting at registration allowed for more effective communication and engagement with prospects. Customized messaging, guided by customer demographics and purchasing behaviors, improved acquisition and retention by helping the right messages reach the appropriate individuals through their preferred channels.
Use case #4: Comparing customer bases: Insights for a retailer across two cities
Objective
A national retailer with locations in two major cities (their home base city and a recent expansion city) wanted to understand how different their customer base was in each city. They aimed to uncover key demographic and behavioral differences to refine their marketing strategies and ensure each location received the most relevant messaging and promotions.
Solution
We analyzed each city’s customers across a wide range of characteristics:.
- Demographics: The expansion city had a younger population with more families, while the home base city had an older and more established customer base.
- Purchasing behavior: Customers in the expansion city spent more per transaction than those in the home base city.
- Preferred marketing approach: Customers in the home base city were likelier to be Brand Loyalists, responding well to familiar, trust-driven messaging. Shoppers in the expansion city were Savvy Researchers who responded better to value-based content and product comparisons.
Results
Using these insights, the retailer tailored its marketing approach to align with each location’s customer base:
- Home base city: Focused on maintaining loyalty by emphasizing brand trust and highlighting long-term customer benefits.
- Expansion city: Positioned marketing to appeal to younger, family-focused consumers to showcase high-value purchases and competitive pricing
These adjustments led to improved engagement and higher sales in both cities.
Use case #5: Optimizing direct mail to help a nationwide retailer maximize impact on a limited budget
Objective
Facing a shrinking marketing budget, a nationwide retailer needed to refine their direct mail strategy to reach the right customers while reducing costs.
Solution
We developed a comprehensive dashboard summarizing two dozen recent direct mail campaigns, which allowed the retailer to:
- Understand the demographic composition of high-response customers across different regions.
- Identify key patterns in response rates, helping them pinpoint the most receptive audiences.
- Discover that the Power Elite Mosaic Group representing affluent, high-spending households comprised only 17% of their mailed audience but accounted for 47% of responses.
Results
With these insights, the retailer restructured their direct mail strategy to target the highest-performing segments. Changes like these led to a 30% reduction in mailing costs while retaining 92% of sales, proving that strategic segmentation can drive efficiency without sacrificing revenue.
Explore demographic segmentation with Experian
Now that we’ve defined demographic segmentation and provided real-world examples, it’s time to explore how Experian data can help you better understand and connect with your audience. Experian’s Marketing Attributes provide rich, privacy-conscious insights into consumer demographics, lifestyles, and behaviors. These insights empower marketers to personalize experiences, refine targeting strategies, and make more informed decisions. With a deeper understanding of who your customers are, you can create more meaningful, impactful campaigns that drive stronger engagement and results.
Connect with us today to see how our data and expertise can improve your targeting, personalization, and campaign performance.
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Advertising today is more complex than ever. Consumers demand personalized, relevant experiences from brands, making it increasingly challenging to meet expectations without external support. Businesses must work with publishers, retailers, and platforms to thrive, using these partnerships for data insights that refine their strategies and fuel growth. We spoke with industry leaders from Ampersand, AppsFlyer, Audigent, Comcast Advertising, Fox, ID5, and Snowflake to gather insights on how strategic collaboration can expand audience reach, improve targeting precision, and drive measurable advertising success. 1. Expand your reach with strategic collaborations Gone are the days when brands relied solely on third-party data. By linking their first-party insights with equally valuable data from partners, brands develop a far more comprehensive understanding of their audiences. This collaborative approach creates richer audience profiles, improves targeting, and enhances campaign performance. Partnerships also create opportunities for operational efficiencies. For instance, brands that share data and expertise with collaborators can expand their audience reach without overhauling existing systems. These collaborations allow marketers to work smarter, turning shared knowledge into strategic wins. "Partnerships are everything. We can't fulfill our goals on the sale side, marketers can't fulfill their goals of finding their audience where they need to reach them and with the right level of outcomes without partnering together. Why? Because each of them has their own line of sight to the data that they have access to and the data that they know best."Justin Rosen, Ampersand 2. Identify the right partnership model Choosing the right partnership model is key to achieving your business objectives. For some, pairing first-party data with publishers' insights creates better targeting. For others, aligning with complementary brands allows them to engage shared audiences. For large-scale efforts, agencies can unify collaboration frameworks, making onboarding and activation seamless. Meanwhile, emerging categories like FinTech, hospitality, and commerce media provide brands new avenues for impactful partnerships. Evaluating these options thoroughly will ensure your collaboration aligns with long-term marketing goals. "With first-party data being really the central point of signal today, we see more and more of our advertisers identifying partnerships with maybe potentially historical competitors or partners they would've never considered."Tami Harrigan, AppsFlyer 3. Utilize the power of pooled insights Combining various data sources, like CRM records, browsing behavior, and shopping receipts, creates an in-depth view of your customers. By understanding what motivates consumers at every stage of their journey, brands can better tailor messaging and funnel marketing spend to where it matters most. This approach also enables data-driven agility. Real-time insights help brands make informed adjustments, whether it’s shifting strategies mid-campaign or identifying new growth opportunities. When brands share data responsibly, the results are campaigns that resonate and deliver measurable improvements. "A lot of advertisers have gotten smarter about their data than they were just two, three years ago. They’re now doing that segmentation on their side with their data and bringing that to Fox and saying, ‘Look, match this segment against your entire user base.’ In order to do that, we can work with providers like Experian, or with data clean rooms to really bring that data and do a direct match without going through a third party."Darren Sherriff, Fox 4. Adopt the right tools and technology The right tools empower a collaborative data ecosystem. Solutions like data clean rooms ensure privacy-first data matching and measurement. Identity frameworks, such as Unified ID 2.0 (UID2) or ID5, enable secure data alignment across platforms, simplifying audience targeting while safeguarding sensitive information. Shared dashboards are another crucial tool, providing all collaborators with clear, co-owned performance metrics. Yet, while technology is an enabler, success ultimately depends on how well tools align with each partner’s goals and build trust within the collaboration. “You have to make it accessible to non-technical personas and you have to have the ability to have it stood up and pay dividends in a short amount of time. The other thing is interoperability. We very much think as an industry we need to have interoperability with clean rooms, ones that operate on different frameworks.” David Wells, Snowflake 5. Overcome barriers to collaboration Collaboration often faces obstacles, like differing goals, fragmented data, or resource gaps. Brands can tackle these issues by aligning stakeholders on clear KPIs, standardizing data-sharing practices, and selecting tools that integrate smoothly with existing systems. Breaking down barriers early fosters fluid cooperation and improves outcomes for everyone involved. When goals, tools, and resources are in sync, these partnerships deliver lasting value and stronger results. “The key is to bring together data assets and work collaboratively to address fragmentation. The way to solve that is with more interoperability and connect the data in very privacy-safe ways, offering more opportunity to reach high fidelity audiences and incorporate better measurement methodologies.”Carmela Fournier, Comcast Advertising The path to growth through partnership Those who prioritize collaboration will outrun the competition and drive sustainable growth through smarter, more connected advertising. By choosing the right models, using powerful technology, and addressing potential obstacles, brands can co-create campaigns that resonate deeply with their audiences. Connect with our experts Latest posts
RampUp 2025 brought together some of the smartest minds in AdTech to talk about the future of our industry. I had the opportunity to ask attendees key questions about AI, data collaboration, and the challenges they wish they could solve instantly. Here’s what they had to say. Watch my interviews here AI is everywhere in ads—How is it changing things? AI’s influence on advertising is undeniable, and industry leaders at RampUp 2025 emphasized how it is transforming the way data is used across marketing workflows. The increasing presence of Generative AI like ChatGPT is making it easier to stitch together data from various sources and act on insights, helping marketers execute campaigns with more efficiency. AI is no longer just about automation; it is now deeply embedded in audience building, personalization, and measurement, enabling marketers to optimize every step of the customer journey. What’s the one AdTech headache you’d fix forever? AdTech leaders agreed that some industry challenges have lingered for too long. Many expressed frustrations with the ongoing conversation about unifying cross-screen targeting and measurement. While the technology exists, aligning business priorities remains a roadblock. Others highlighted issues like the complexity of billing and reporting, which still needs to be faster and more reliable. There was also a strong push to educate brand marketers on the continued impact of offline media, such as billboards, and how data-driven strategies can enhance the effectiveness of out-of-home advertising. Beyond these operational challenges, another recurring theme was the increasing importance of identity as the backbone of effective advertising. While brands are focused on collecting first-party data, the true challenge lies in activating that data at scale. Without a strong identity resolution strategy, first-party data alone is not enough to create meaningful audience connections across multiple platforms and devices. What's one AdTech tool or strategy you can’t live without? When it comes to must-have tools and strategies, data collaboration and clean rooms emerged as essential. These solutions help companies, agencies, and publishers work together seamlessly while maintaining security and efficiency. Another key strategy discussed was traffic shaping, which allows advertisers to push activation closer to publishers, reducing data leakage and improving overall performance. Both of these approaches are critical for advertisers aiming to scale. However, as brands continue to seek more flexibility and efficiency, the conversation at RampUp expanded beyond individual tools toward a broader industry transformation. Interoperability has become a top priority, with brands, platforms, and data providers focused on ensuring seamless connectivity across clean rooms, customer data platforms (CDPs), and activation partners. The days of being locked into a single walled garden are over—the future is about data portability. "RampUp made it clear that the industry is shifting toward curated, interoperable, and always-on identity solutions—and Experian is perfectly positioned to lead this next phase of growth."Suzanna Stevens, Sr. Enterprise Partnerships Manager This shift is also driving changes in how brands manage identity. Rather than relying on one-off data onboarding, companies are increasingly adopting subscription-based identity solutions that provide an always-on, continuously refreshed identity graph. This model ensures that brands have up-to-date customer profiles while reducing inefficiencies associated with batch processing. What privacy regulations should marketers be watching? Privacy remains one of the most pressing concerns in AdTech, and industry experts highlighted the need for a better approach to regulation. Consent management was identified as a major priority since it is fluid and directly impacts how marketers engage with consumers. There was also a strong sentiment that the current state-by-state approach to privacy regulation in the U.S. is unsustainable. Instead, the industry would benefit from a national framework that simplifies compliance and ensures more consistent data governance across all states. Final thoughts from RampUp 2025 RampUp 2025 showcased the rapid shifts happening in AdTech, from AI-driven efficiencies to the growing importance of data collaboration and privacy-first strategies. As the industry works to solve long-standing challenges, such as unification and regulatory fragmentation, innovation continues to drive new opportunities. Experian remains committed to helping advertisers and marketers navigate these changes by enabling smarter, more connected, and privacy-conscious advertising solutions. We’re excited to see how these themes evolve throughout the year and look forward to collaborating with our partners to shape the future of digital advertising. Follow us on LinkedIn or sign up for our email newsletter for more insights on the latest industry trends and data-driven marketing strategies. Contact us Latest posts
Originally appeared in AdExchanger Navigating the world of data and identity partners feels like scrolling through a dating app: a sea of options, but only a select few worth swiping right. To find your perfect match, look for a partner who ticks all the right boxes. Here’s your guide to finding your perfect match. 1. Identity resolution: It all starts with a strong foundation Great identity resolution depends on a rock-solid foundation. The best partners rely on offline data—like names, addresses, and emails—that rarely change, ensuring a consistent view of households, individuals, and their devices over time. You want someone who gives you the same understanding of your audience across every stage of a campaign. 2. In search of: A well-rounded, reliable identity partner When evaluating identity graphs, it’s essential to distinguish between digital-only graphs, offline graphs, and those rare gems who combine both. Digital graphs rely on digital identifiers, while offline graphs are grounded in persistent identifiers like name, address, and phone number. A partner who offers both creates a more complete and reliable view of consumers across channels, resulting in more effective targeting and measurement. 3. Match rates are like dating profiles—don’t be fooled by the numbers Match rates can look impressive, but they’re often misleading. They can also vary widely depending on the methodology and the IDs being tested. Some providers inflate match rates by limiting the scope of comparison or tweaking their standards. The real indicators of quality are the depth of the data, the quality of matches, and how often the graph is refreshed. Ideally, your partner updates their graph weekly or monthly. The inclusion of inactive IDs may inflate the perceived scale without reflecting the true addressable audience. It's like having a profile photo from ten years ago–a major no-no. 4. Authentic origins: Is their data genuine or just a catfish? Look into your partner’s data sources and place a premium on those with public records or direct to consumer relationships. Ask if they have the experience and expertise when it comes to all aspects of data processing from accuracy to privacy and security. Look for some clear third-party indicators for accuracy, like ratings from Truthset, but there is also a basic reality: either your partner is focused on privacy and accuracy, or they are just playing the scale game. Swipe left on those playing games. 5. The breadth to impress Depth matters as much as quality. Seek a partner with wide-ranging attributes that span key audience categories like demographics, interests, and purchase behavior. They should offer the flexibility to deliver both granular data scores and broad audience segments, empowering you to reach the right consumers across channels effectively. 6. The total package: Does your partner really have it all? A true, lifelong partner connects the dots seamlessly, offering a blend of data and identity that link households to devices while layering in rich marketing insights. This approach helps advertisers better understand their customers, reach the right audiences across channels, and measure the impact of their campaigns. The right partner is well-connected and ensures that all the pieces—identity, data, and activation—work in harmony. 7. Future-proof charm: Will they ghost you when cookies crumble? With the Identifier for Advertisers (IDFAs) gone, cookies on the wane, and IP addresses under scrutiny, a partner’s ability to adapt is critical. The most future-proofed solutions are based on offline identifiers like names and addresses, which are user provided and consented data points–making them more resistant to privacy changes. Additionally, look for partners who have made the necessary investments and are prepared to support the new wave of addressable IDs emerging as alternatives to traditional signals. 8. Privacy savvy: Do they respect boundaries? As privacy laws evolve, you need a partner with a strong history in privacy compliance and proactive leadership in navigating new regulations. Strong and transparent privacy policies and participation in privacy organizations are a good indicator of trustworthiness, especially as new rules emerge across different states. Look for a partner who takes data privacy as seriously as you do and gives you peace of mind when handling sensitive information. 9. Seamless connectivity: Do they play well with others? Data is only as useful as it is actionable. Connectivity across platforms is essential, so choose a partner with seamless integrations into the major platforms you rely on for advertising. This ensures your data quality and identity resolution remain intact throughout your campaigns, avoiding loss from multiple handoffs. 10. Killer customer service: Are they in it for the long haul? A great partner collaborates to solve challenges, not just to sell or upsell. Long-standing partnerships and testimonials about strong customer service are key indicators of reliability. Choose a partner who educates and guides you through technical and strategic challenges, fostering an environment where problem-solving and innovation thrive. Keep your standards high Only a handful of companies can meet these rigorous criteria, and you should refuse to settle for a partner that lacks any of these key dimensions. Successfully navigating signal loss, privacy compliance, and seamless omnichannel integration requires extensive resources, robust infrastructure, and years of expertise. Download our full matchmaking guide So, swipe right on a partner who can handle the complexities of modern marketing and deliver consistent, scalable successful marketing outcomes. Could we be your perfect match? Find out if it's a match today Latest posts