How Demographic Analysis Solutions Benefit Your Business
Every person wants and needs something different. The shopping experience and customer behavior can differ greatly depending on an array of factors. “All generalizations are false, including this one,” says Nietzsche and indeed he too is wrong, and well also right. Countless studies have shown that several demographic factors play a key role in coming up with marketing strategies to drive business and achieve growth, but of course, it all depends on what’s the product and to whom you’re trying to sell it.
Simply put, in most cases, women and men shop differently, so you need to adopt different strategies to attract them. Add age groups to the mix and things get even more complicated. You are unlikely to target older generations if you are selling a high-tech product. Per Statista’s numbers, females who’re 18 years or older purchase sports equipment and gear more often; in fact, the athletic apparel market is roughly 60% women and 40% men. It’s nearly impossible to dive into the personal level when cooking up business growth plans but data usually speaks the truth, provided you have the right technology and solutions to add meaning to it.
There’s a reason why gender and age demographics are the most popular metrics considered by all sizes of businesses when planning for promotional campaigns and maximizing sales. Knowing the demographic profile of your visitors allows you to provide them with a more personalized shopping experience. Depending on who your predominant demographic is, there are a few ways to cater to their interests. You can offer the products and brands that appeal to them, improve the display and placement of the products, and optimize the store design to cater to their preferences.
In this article, we’ll share insights into how you can leverage demographic analysis solutions and AI to improve your brick-and-mortar businesses.
How Demographic Profiles Affect Shopper Behavior
It is important to take into account that different demographics have different needs, preferences, and shopping habits. People differ significantly in their perspectives and rationales, whether they are males or females, young or old. In the end, though, people want to buy and they want a variety of products and brands to choose from. It’s your responsibility to find out which demographic groups want what and make the purchasing process as easy and profitable as it can be. In order to do that, you’ll need a reliable technology not only that can count people but count them with nearly flawless accuracy (to have healthy and actionable data) and group them into genders and ages. In the end, their differences usually influence their purchasing decisions.
According to studies, shopping for men typically involves a straightforward process. They usually know what they want to buy in advance, arrive at the store, pick up the product they want, proceed to checkout, pay, and leave. They rarely shop around for cheaper alternatives or stay around to compare products. When they can’t find what they’re looking for, they pick the closest alternative. Most men hate leaving stores empty-handed.
In contrast, women may have a particular product in mind, but they’ll continue searching for better alternatives. When they don’t find the product they want, they are willing to leave. They might take longer to make a purchase decision. Most middle-aged and older women customers love coupons and will willingly spend more time searching for bargains, but men prefer to speed up the buying process by paying more.
When store managers are aware of the prevalent age and gender of their customers, as well as the differences in their shopping behaviors, they are able to predict their customers’ needs and tailor their services accordingly.
Keep in mind that, while the above comments rely heavily on studies and research, at the end of the day, generalizations, and your customers’ behavior may differ greatly, hence why you need to find out who they’re and what they want and how you can use this information to maximize your revenue.
In-Store Gender Recognition
Recognizing a customer’s gender is a tough task, even for today’s AI solutions. You can’t just automatically assume your potential customer’s gender just by letting the AI analyze the person it tracks via stereotypical features. Men can have long hair too, women can have short hair; some women are tall and some men are short and slim and the variables go on and on.
V-Count’s gender recognition solution is in-house developed and it’s receiving updates regularly to perform better with each addition. It uses state-of-the-art facial recognition AI technology to provide highly accurate results. The traffic tracking sensor is installed at an angle that can view the visitors’ faces and the AI analyzes the facial features and identifies the person’s gender, transfers the information to the business intelligence platform (an online, user-friendly interface) and it processes all the data anonymously. The in-house developed machine learning algorithm is fully GDPR compliant.
When you know the gender profiles of your potential and existing customers you can optimize marketing activities to accommodate the customer base, gain new customers via new strategies, or re-engage lost customers with new promotions.
Using customer segmentation data, physical businesses can better understand their customers’ profiles and provide better service based on their demographics. Managers can measure the efficiency of marketing strategies and tailor advertising methods according to the gender trends of their customers.
The gender recognition software can improve merchandising effectiveness by choosing assortments based on visitor gender data. You can also optimize stock allocation & design a customer journey based on the gender demographics of your customers.
Using the V-Count Storefront Demographics solution, you can identify potential customers based on their demographic profile and come up with new plans to attract them, and turn them into customers. Using this visualized data you can tell the gender and age distribution of customers showing interest in your stores. You can then choose the right products to display to convert these curious eyes into paying customers. A reliable storefront solution can also help you re-engage with customers who’re regularly passing by your store but not anymore shopping from you.
The sensors pick up all the demographic information anonymously, and you can generate a variety of actionable reports based on the number of people passing by, their gender and age distribution, and even attention time.
By segmenting your customers, you can better understand their profiles to deliver better service, measure your marketing campaign’s effectiveness and tailor your advertising techniques to your customers’ demographic trends to boost conversions.
You can also choose assortments in line with your visitors’ gender and age data to achieve efficient merchandising and better business results. Additionally, you can optimize window displays based on the gender demographics of visitors passing by your store to draw more people in.
A traffic counter can also help you save greatly on energy costs. Not only can you decrease the overall operations cost and optimize your energy spending, but you can also read the data and know when your storefront attracts people the most, and display digital ads accordingly.
Why Leverage Demographic Analysis Solutions for Your Business
When you know the demographic profile of your visitors, you can gain some core insights without in-depth analysis. Say, you’re running a high-tech gadget store. Most likely, your dominant customer profile is dominated by men, probably in their twenties and thirties. You can guess it, or you can truly know it. The latter will allow you to invest and diversify in new lines or products and increase selling opportunities that appeal to this demographic. Follow the trends, and combine your expertise with accurate traffic counting technologies and your recipe for success will be complete.
Of course, having said all of that, if a high percentage of your visitors are women then you’re likely to redesign your store according to their in-store journey and aim to deliver the best customer experience.
Demographic profiles also help improve window displays, marketing initiatives, product placement, and store layout.
Demographic analysis solution shows you what age groups and genders your store attracts. Once you have the data, you can compare it with the products you are offering. A menswear store that mainly attracts men is on the right track; if however, your marketing campaigns are not directly targeting the age bracket you need, you can adjust them to better target men in your target market.
For stores that appeal to both men and women, the last thing a manager wants is predominantly male or female visitors. Increasing engagement and selling opportunities requires diversity for these stores. You want to attract all groups of people. A targeted marketing campaign is needed if your data shows that a certain demographic group does not visit your store. Unless you see an opportunity growing, balance is needed and people counters will once again come to your rescue.
Businesses, old or new, need to remain competitive in the current retail climate. With technological solutions like Demographic Analysis, managers can optimize every step of their business process, attract the type of visitors they need, improve product and service delivery, and boost customer satisfaction.