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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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Target individuals interested in attending sporting events, promote ticket sales, VIP experiences, and exclusive merchandise to elevate their game-day experience and foster a sense of belonging within the sports community. Here are 7 audience segments that you can activate to target sports spectators: Interested in sports: Lifestyle and Interests (Affinity) > Sports (FLA / Fair Lending Friendly)*Baseball (FLA / Fair Lending Friendly) Football (FLA / Fair Lending Friendly) Visits sports venues: Mobile Location Models > Visits >College Sport VenuesNFL Stadium VisitorsUniversity Stadium College Football Visitor MLB Stadium Visitors You can also develop targeted advertising campaigns promoting travel packages or hotel deals around Paris. Highlight proximity to this summer’s games, special experiences, or exclusive offers for travelers during this summer’s games season. By targeting specific travel preferences and behaviors, you can capture the attention of individuals planning trips around this summer’s games. When you work with Experian, you work with a single data provider that gives you access to audiences across multiple verticals and categories like travel and retail. Sporting goods shoppers You can use Experian audiences to reach consumers interested in sports and fitness ahead of the summer games. Targeting individuals in the market for sports equipment and apparel can help you reach those actively seeking sporting goods. By focusing on this segment, you can increase conversion rates and optimize ad spend by reaching an audience already inclined toward sports and fitness shopping. Here are 6 audience segments that you can activate to target consumers who are spending on sports apparel: NEW! Wears athleisure: Retail Shoppers: Purchase Based > Sporting Goods, Apparel > Athleisure Sportswear Apparel Women's activewear high spenders: Retail Shoppers: Purchase Based > Apparel > Women's Activewear / Yoga: Online High Spenders Men's activewear high spenders: Retail Shoppers: Purchase Based > Apparel > Men's Apparel (Clothing): Men's Activewear: High Spenders Athletic footwear high spenders: Retail Shoppers: Purchase Based > Apparel > Footwear (Shoes): Athletic Footwear: High Spenders Golf equipment frequent spenders: Retail Shoppers: Purchase Based > Sporting Goods, Apparel > Golf Equipment, Apparel, Entertainment Frequent Spenders Sporting goods shoppers: Mobile Location Models > Visits > Sporting Goods Shoppers Athletes For brands catering to athletes and sports enthusiasts, targeting active players is crucial. Offer products, training tips, and motivational content that inspire and empower them to excel in their chosen sports. Here are 5 audience segments that you can activate to target athletes: Likely to play sports: Lifestyle and Interests (Affinity) > Sports and RecreationPlays HockeyPlays Soccer Plays Tennis Likely to play golf: Lifestyle and Interests (Affinity) > Activities and Entertainment > Play Golf NEW! E-motion riders: Retail Shoppers: Purchase Based > Outdoor Activities > EMotion Riders E-Scooters E-Bikes E-Skateboards Influencer marketing campaigns Collaborate with influential athletes or sports personalities to create sponsored content that resonates with sports fans. You can pair our Social media heavy user audience with our Likely to be a sports enthusiast and TrueTouch conversion channel audiences to reach those who are likely to be influenced by endorsements from celebrities or athletes. Targeted advertising in sports with Experian audiences By using Experian's syndicated audiences in sports advertising, you can reach sporting goods shoppers, passionate sports fans, active players, and enthusiastic spectators. Our deep understanding of people in the offline and digital worlds provides you with a persistent linkage of personally identifiable information (PII) data and digital identifiers, ensuring you rich insights, accurate targeting across devices, improved addressability, and measurable advertising. Just as athletes strive for excellence, with the right approach, your advertising in sports initiatives will stand out as champions in the arena of consumer engagement. Can’t find the audience you’re looking for or need a custom audience? Connect with our audience team for more information. Additionally, work with Experian’s network of data providers to build audiences and send to an Audigent PMP for activation.  Connect with our audience team You can activate our syndicated audiences on-the-shelf of most major platforms. For a full list of Experian's syndicated audiences and activation destinations, download our syndicated audiences guide. Check out other seasonal audiences you can activate today. View now Contact us Footnote * “Fair Lending Friendly” indicates data fields that Experian has made available without use of certain demographic attributes that may increase the likelihood of discriminatory practices prohibited by the Fair Housing Act (“FHA”) and Equal Credit Opportunity Act (“ECOA”). These excluded attributes include, but may not be limited to, race, color, religion, national origin, sex, marital status, age, disability, handicap, family status, ancestry, sexual orientation, unfavorable military discharge, and gender. Experian’s provision of Fair Lending Friendly indicators does not constitute legal advice or otherwise assures your compliance with the FHA, ECOA, or any other applicable laws. Clients should seek legal advice with respect to your use of data in connection with lending decisions or application and compliance with applicable laws. Latest posts

May 08,2024 by Hayley Schneider, Content Marketing Manager

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