Demographic segmentation

Demographic segmentation divides consumers into groups based on demographic factors such as age, gender, and income. It’s one of the most common types of customer segmentation since demographic data is easy to obtain.

You can use demographic segmentation to personalize marketing content, target customer groups, tailor products, and improve customer service.

Many marketers consider demographic segmentation the most cost-effective method of customer segmentation.

How do industry leaders segment their audience for personalization? Find out in our report on industry segmentation patterns.

The most common factors used in demographic segmentation are:

Age

Age segmentation simply divides your audiences into different age groups. Age segmentation allows businesses to target their audiences based on specific age ranges, life cycle stages, and generations (such as baby boomers, millennials, Gen X, etc.).

Birthday

Segmenting customers based on birthdate is an easy way to make a personal connection with messaging and offers around their special day.

Gender

Gender segmentation organizes audiences by gender so that marketers can tailor marketing strategies to the buying habits and preferences of each gender group.

Income

Income segmentation organizes consumers into groups ranging from low-income to high-income earners, with various levels in between. It lets you better understand the purchasing power of different segments of your potential customers.

Education

Education segmentation categorizes potential customers based on their level of education and areas of study.

Like other types of customer segmentation, demographic segmentation can help businesses personalize content to increase engagement and drive customer loyalty, as well as target advertising to decrease cost and increase return.

Some advantages of demographic segmentation over other types of segmentation are:

Data is easy to obtain: A lot of demographic data, including government census data, is publicly available.

Lower cost: Companies can access demographic data for free through publicly available information or by conducting surveys and interviews.

Segmentation and analysis are straightforward: Analysing demographic data to create segments is relatively easy compared to more subjective segmentation methods like psychographic segmentation.

Demographic segmentation alone has some limitations.

Limited view of customers: Just because people are in the same demographic segment because of their age, gender, or education level doesn't mean they need or want the same things. To better understand your customers, you will need to combine demographic segmentation with other segmentation types.

Demographics can change: Income level, education, and other demographic data can change over time, as can the meaning behind the data. For example, companies targeting retirees need to account for changes in the average retirement age and trends like “encore” careers.

Incomplete or biased data: Getting accurate and reliable data on smaller or underserved demographic groups can be difficult.

You can collect first-party demographic data through surveys and interviews. Demographic questions can be included in a larger survey, on forms, or at checkout, where you might ask customers to tell you more about themselves.

You can also find demographic data, including census data, in public databases.

See how easy it is to set up segments and start delivering personalized experiences with AI-native personalization, or contact us to see how Contentful can help your business scale personalization faster.

Up next: Behavioral segmentation

Discover how behavioral segmentation tailors experiences based on customer actions. Learn key benefits, examples, and data-driven personalization strategies.