Have you ever wondered about who your customers really are? You can get a basic understanding by capturing demographics.
Market Research Starts with Knowing Who You’re Talking To
Whether you are an entrepreneur looking to launch a new business, an existing startup working to get established, or a small company that has been around for a while, at some point you will find yourself looking to existing or potential customers to offer you some direction. From marketing strategy professionals to small business agencies, from AI chatbots to online blogs, you will be advised time and again that nothing replaces doing your own research to find answers to your unique business challenges.
Common Business Questions Market Research Helps Answer
Companies of all types and sizes engage in market research to help them address questions such as:
- Who are my best customers?
- What problems are they looking to solve?
- How do my products and services address those problems?
- How do I compare to my competition?
- Do my best potential customers even know I exist?
In order to answer these questions, it is helpful to have a clear picture of who you are talking to. Just as knowing your ideal customer is instrumental to any good growth strategy, similarly good market research means having general information about your target audience. In short, understanding your audience is the first step to making smarter business decisions – and you can lay the foundation for this understanding by capturing demographics.
What Are Demographics?
Demographics are characteristics that describe a population or smaller group of people. They help explain who the group is, such as how old they are, where they are located, what they look like, etc. When the group in question consists of companies instead of people, the descriptive characteristics are referred to as firmographics.
Why Demographics Matter for Your Business
Demographics and firmographics form the building blocks to understanding:
- Who your current customers are (the people buying your products or services today)
- Who your ideal target customers should be (those who will pay a premium for, be enthusiastic about, or become repeat buyers of the products or services you offer)
- The marketplace in which you do business
When you know key demographic information about your potential and current customers, you start to create a foundation of facts about your audience. This lets you build strategies based on real insights and not guesses. Knowing your customers’ basic characteristics helps you tailor your products and marketing for better results.
Get Started with This Brief “Beginner’s Guide to Market Research: Introducing Demographics”
You don’t need to be a market research expert to start using demographics in your efforts. Here’s a simple guide to get you going.
Beginner’s Guide to Market Research: Introducing Demographics
Alisha Torres, Aliterwise Founder
An experienced market research and consumer insights leader, Alisha began Aliterwise out of a desire to help small businesses and entrepreneurs develop growth strategies based on solid research. Before Aliterwise she worked at various traditional market research firms and consumer intelligence agencies including GfK, Nielsen, Experian and MRI-Simmons. She has helped companies of all types develop data-driven strategies in the areas of consumer behavior, product development, advertising effectiveness, brand management and customer satisfaction. Read more about Alisha.
