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Five real-life demographic segmentation examples

Published: April 17, 2025 by Erik Lund, Lead Consultant

Demographic segmentation examples

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.

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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.

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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
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Results

By combining these attributes to create custom segments, we uncovered two valuable annual estimates:

  1. 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).
  2. 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

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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.

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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.
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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

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Objective

A health supplement company wanted to identify specific segments within their ambassador program to provide better support and increase engagement.

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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.
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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

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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.

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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.
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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

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Objective

Facing a shrinking marketing budget, a nationwide retailer needed to refine their direct mail strategy to reach the right customers while reducing costs.

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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.
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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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This indicates a growing trust in smartphone transactions among shoppers, which is why 2024 will likely reflect this trend. As a marketer, this means you should ensure your website is optimized for smartphones and tablets. Ensure load speed is quick, navigation is simple, designs are intuitive, and mobile payment options are available. You also have an opportunity to invite your customers to sign up for SMS or push notifications so they can shop deals immediately after they’re rolled out. While mobile should be a priority, we still recommend investing in multiple channels to capture online shoppers everywhere they’re buying. Our Graph can help you unify data, capture user activity, and view your target audience holistically to optimize ad spend, allocate resources effectively, and improve ROI. Marketers will start preparing their Black Friday campaigns earlier than ever With increasing market competition and pressure to accommodate early bird deal seekers, marketers will likely start preparing their discounts, inventories, and promotional materials earlier in the summer. Data enrichment can help you prepare early Black Friday promos by providing deeper insights into your customers and what they want. Enriching your existing data with behavioral, financial, and demographic information can help you create precise audience segments and personalized content, anticipate customer preferences, optimize channel placement, and tailor your promotions effectively. On average, Experian has 250 behavioral and demographic marketing attributes per individual, which means we can decorate households and people with marketing data to get a full customer profile and fill in any gaps you have on your audience. You can also consider implementing sell-side targeting to help your promotions reach the right people. If you plan to run early promotions, try not to create deal fatigue among your consumers. Focus on building a few high-quality promotions that will attract your target customers. BNPL arrangements will become more common for conversion Given lingering inflation in the U.S., consumers will still be looking for ways to stretch their money this year, and many shoppers may seek out BNPL arrangements. With so many shoppers wanting the financial convenience of making large purchases without the immediate financial burden, marketers can use data enrichment to identify their target segments most likely to use BNPL and create personalized offers and promotions for them. Your strategy should include high-value offers and messaging that appeal to budget-conscious shoppers and a checkout optimized for BNPL options. Channel switching will surge Black Friday and Cyber Monday sales are starting to become channel-agnostic, with consumers browsing online, on mobile apps, in physical stores, and on social media. As such, they expect a unified experience wherever they browse. Any inconsistency can disrupt the purchase journey and deter potential buyers. As the shopping experience becomes more connected, consumers are moving between channels more frequently, which means integrating data from various touchpoints will be crucial to understanding and predicting customer behavior. Marketers must develop cohesive omnichannel strategies with consistent messaging and promotions across channels. Your campaigns should span multiple channels so customers can engage with your brand in various ways. We work with major platforms, marketers, and agencies, which means we have existing partnerships across the ecosystem for you to connect with and bring your consumer data to life to meet your needs. Paid search will drive the most sales Research from Adobe shows paid search as the top sales driver of Cyber Week 2023, comprising nearly 30% of all online sales. Due to the high-intent customers captured by paid search and the surge in shopping on mobile devices, we expect to see paid search drive much of the Black Friday sales in 2024 — especially as advances in data analytics and AI allow marketers to optimize paid search campaigns more effectively. They can analyze vast amounts of data to refine keywords, ad copy, and bidding strategies for higher ROI and better targeting. In 2024, it's essential to prioritize paid search strategies and focus on using relevant, high-performing keywords for your campaigns. You can continuously refine your strategies using AI and data analytics to target high-intent customers. Additionally, integrating insights from customer behavior data will help you create more personalized, impactful ad copy and heighten the effectiveness of your paid search efforts. Experian can help you win Black Friday 2024 Want your marketing campaigns to stand out and reach your audiences on Black Friday this year? Partner with Experian to create data-driven, targeted, impactful 2024 holiday campaigns. Download our 2024 report here Download our 2025 report with GroundTruth here Our data empowers you to gain valuable insights and optimize your holiday marketing strategies. We can connect online and physical transactions to our Experian household ID for a holistic view of customer behavior, connect ad exposure with foot traffic, or employ control group lift analysis to measure campaign effectiveness. By activating our purchase-based holiday audiences, like last-minute and one-stop holiday shoppers, you can reach the segments most likely to spend with you. Integrating with over 150 channels, we’ll help your campaigns reach your audience wherever they are. You can even utilize our connections to various digital platforms and partners to expand your reach. With Experian’s measurement offerings, you can make data-driven decisions about your activation strategies. Engage the right audiences and drive exceptional results this holiday season with Experian. Get started Latest posts

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Introducing Experian’s Collaboration in clean rooms offering

At Experian, we power data-driven advertising through connectivity. Today, we're excited to introduce our newest offering, which helps drive that connectivity: Experian's Collaboration in clean rooms. This offering is now generally available in InfoSum, AWS Clean Rooms, and others. Experian can now facilitate successful data collaboration across multiple secure environments, such as at Experian, through crosswalks, and now in clean rooms. Whether you are a marketer or partner, introducing Experian’s signal-agnostic offline and digital identity graphs into your clean rooms lets you run identity resolution directly in the clean room. This means your data remains secure, while you and your partner experience higher match rates and you maximize your clean room investment, leading to: More resolved data More valuable insights and smarter activation More accurate and complete measurement A leap forward in data collaboration Backed by Experian’s Global Data Principles, Experian's deep roots in identity and data security offer the most effective and trusted ways to match data and protect consumer privacy. Our signal-agnostic approach means we can resolve all types of offline and digital identity signals, which is valuable now and will become even more valuable as third-party cookies go away. Additionally, data hygiene is built right into our collaboration offering, helping to improve match rates. The benefits of working with Experian’s rich identity data in a clean room environment are obvious so it is no surprise to see that 55% of data clean room users are using identity solutions in data clean rooms. What are data clean rooms? Data clean rooms are a tool typically used for data sharing, built on top of cloud providers such as AWS clean rooms. They protect data privacy while facilitating data collaboration among clients, marketers, businesses, and their partners. As the industry places greater emphasis on data security, clean rooms have emerged as secure environments that allow companies to: Enhance user privacy protection Minimize the impact of cookie deprecation Secure collaboration with data partners The industry has quickly realized that, for what clean rooms offer by way of privacy and security, they lack resolution capabilities, typically yielding subpar match rates. Benefits of Experian's Collaboration in clean rooms offering Built upon Experian’s rich offline and digital identity foundation, with support for various identifiers across platforms, Collaboration in clean rooms helps clients maximize the value of their data and meet the diverse needs of modern business. Through Experian's Collaboration in clean rooms offering, you can: Collaborate with partners for richer data insights Achieve higher match rates Improve audience building Produce more accurate and complete reports Ensure data privacy Regardless of the identifier type you are looking to collaborate on, Experian has the identity data to support you and your partner. This leads to higher match rates and more resolved data for you to use to benefit your media initiatives. Get started with Collaboration in clean rooms today Get the most out of your first-party data with Collaboration in clean rooms, which is essential for businesses that want to compete in a fast-paced market and connect with consumers in today’s data-driven world. We understand the importance of data collaboration and make seamless, secure data sharing possible between partners. Connect with us today to find out how Experian's Collaboration in clean rooms offering ensures privacy while allowing you to extract valuable data insights for smarter data-driven advertising. Start collaborating Latest posts

Jul 15,2024 by Lucy Simmonds, Content Marketing Specialist

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