Geodemographics

Geodemographics derives from the study of spatial information. More specifically, it corresponds to the study and the segmentation of the population and its socioeconomic characteristics, divided according to geographic areas. The resulting geodemographic profiles can be used to identify and locate groups with different lifestyles in several neighborhoods.

In simpler terms, geodemographics is a way to deepen understanding of who the population is and what they want through information about where they live.

Demography is the study of human populations and their evolution, while geodemography is a science that links geography and demography. Geodemographics seeks to understand the processes by which settlements and cities evolve, and neighborhoods are formed.

Geodemographic data describes the lifestyle of households and includes both geographic and demographic data. On the one hand, geographic data refers to information related to zip code, city, country, climate, urban or rural areas, etc. On the other hand, demographic data can be related to age, gender, education, income, social status, family situation, ethnicity, etc. of the population in a specific area.

Geodemographic data help creating geodemographic profiles and specifying target markets, which is especially useful in marketing, retail planning, and site selection analyses. To get the best possible return on investment, geodemographic data can be used to target customers, understand the consumer’s lifestyle choices, identify similar markets, provide the products and services most relevant to a specific location, anticipate future trends and help choosing optimal site selection.

They also contribute greatly to the creation of personas, which represent different types of customers and allow the marketing department to better understand its public, as well as its decision-making process and consumption habits. Marketers will then be able to sell more effectively to specific groups, assuming that each group has similar preferences.

Geodemographic segmentation is the application of clustering or classification techniques to compare multiple population characteristics, form statistically homogeneous or similar neighborhoods and areas, and create location-based segments of prospects. More simply, it divides heterogeneous groups of people into smaller groups based on geodemographic data.

It is based on two principles:

1. People who live in the same neighborhood have a better chance of having similar characteristics than two randomly selected people.
2. Neighborhoods can be categorized according to the characteristics of the population they contain.

In addition to geographic and demographic segmentation, there are two other types of market segmentation: psychological and behavioral segmentation.

It is helpful for target marketing to identify the most effective marketing message and strategies and keep them on track, design ads that are hyper-targeted, help the attraction and conversion of quality leads, stand out from the competition, and identify niche market opportunities.

CAMEO Segmentation from Precisely for the United States and PRIZM Segmentation from Environics Analytics for Canada are examples of segmentation solutions offered by Korem that identify socio-economic profiles. These products allow you to better understand your customers, know their common demographic and behavioral traits, where they live, and when and how to target them through a series of powerful and discriminating consumer classification systems.

These systems evaluate the socio-economic and geodemographic profiles of neighborhoods around the world so you can identify the most profitable segments of the population for your enterprise and make your marketing efforts more cost-effective. Contact us for advice on the best geodemographic data set for you.

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