Everything You Need to Know About Demographic Analysis
V-Countâ€™s Demographic Analysis enables businesses to separate their visitors into groups based on their mood, age, or gender. Men and women have different shopping preferences, and different strategies are needed to engage them. Even among genders, age is an essential factor. A middle-aged woman will have a different in-store shopping behavior from a teenage girl.
When you know the demographic profile of your visitors, you are better placed to provide them with a personalized shopping experience. You can provide the products and brands that appeal to them, improve product display and placement, and optimize the in-store design to suit the preferences of your predominant demographic.
The mood part of the system helps business managers understand visitors’ emotions in the store. It tells you whether they are happy or sad about the service they are receiving (or have received). When data from the mood system is combined with data from other retail analytics software, you can identify the parts of your service that customers find unsatisfactory and provide solutions.
Why demographic analysis is important
While shopping, different demographics have different interests, preferences, and habits. People want different products and brands. Beyond that, however, just because they are male, female, young or old, peopleâ€™s perspectives and rationales are not the same. These differences usually have a significant impact on their buying decisions.
For example, studies indicate that when men go shopping, the process is typically straightforward. They pick up the product they want, proceed to checkout, pay, and leave. They hardly go around comparing products or looking for a cheaper alternative. If they donâ€™t find the product they want, they pick the next best thing; to avoid coming back to the store. Men hate leaving stores empty-handed.
Women, on the other hand, may have a product in mind, but theyâ€™ll continue shopping for better alternatives. They may take longer to make buying decisions, and they are willing to leave if they donâ€™t find the product they want. While women love coupons and will happily spend more time to hunt down bargains, men will pay more money to speed up their buying process.
By identifying the prevalent age and gender of your customers and recognizing the differences between shopping behaviors of the demographic groups, store managers can better predict customersâ€™ needs and tailor their services to meet them.
How the Demographic Analysis Software benefits businesses
Here are some benefits of leveraging the demographic analysis software for your business:
- Use data to predict what your customers want
Even without in-depth analysis, some fundamental insights can be gained when you know the demographic profile of your visitors. A gadget store whose traffic is dominated by middle-aged men can increase selling opportunities by stocking products that appeal to that demographic. For example, more iPads and Plasma TVs and fewer game consoles.
If a high percentage of your visitors are women, your store needs to be designed accordingly. The demographic profile of your visitors also informs window displays, product placement, and store layout.
- Improve service delivery
By leveraging the mood analysis part of the software, you can see how satisfied your visitors are. If most of them are not happy, you need to find out why before it affects foot traffic. Perhaps youâ€™re not listing the products that appeal to your visitors. Or your store layout makes it difficult for them to find the items they want. Maybe itâ€™s terrible customer service or long lines at checkout. Whatever it is, you need to resolve it swiftly. Software that measures retail behavior analytics like People Counting, Heatmap, and Queue Management may provide some insight.
- Create targeted marketing campaigns
If data from the demographic analysis software shows you the groups, your store attracts, compare the data to the products youâ€™re offering. A menswear store that mostly attracts men is on the right track. However, if the data indicates that you are attracting men but not in the age bracket you need, you can adjust your marketing campaigns to improve targeting.
For stores that cater to both men and women, the last thing a manager wants is predominantly male or female visitors. For these stores, diversity is essential; you want to attract all groups of people to increase engagement and selling opportunities. If your data shows that a particular demographic do not visit your store, you need to create targeted marketing campaigns to attract them.
Businesses, old or new, need to remain competitive in the current climate. With technologies like the Demographic Analysis Software, managers can optimize every step of their business process. You can attract the type of visitors you need,Â improve product and service delivery, and boost customer satisfaction levels.
To leverage this and other retail analytics solutions, visit the V-Count website. There is an ongoing free trial, check now to see if you apply.