The composition of any particular human population is defined as a demography. So basing the whole marketing strategy on demography means focusing on a specific group of individuals at one point in time.
Targeting specific demographics and then moving on to the next has become the growing trend in the marketing strategy being adopted across the globe. Especially completely using Emails to run the whole campaign(s) not only helps the company to save up on money but also gives them a unique touch.
|Benefits of Demography based Email Marketing||Drawbacks of Demography based Email Marketing|
|Makes the whole marketing strategy very cost efficient||It is hard to predict personal preferences of each individual|
|It can be easily changed as focus shifts to another group||The message might not reach the eyes of the customers|
|The strategy can be customised to target each segment||It takes time to formulate the marketing strategy|
|Costs can be significantly lowered with this strategy||The business is highly likely to lose out on potential customers|
|It is easier for the board to understand consumer profiles||Extensive and exhausting research is mandatory to form the demographics|
|Instills trust and loyalty in the customer||The strategy can have unforeseen ethical ramifications|
Advantages of Demography based Email Marketing
- Cost Efficiency :
Singling out chosen groups to focus on, provides the marketing department with the opportunity to bypass major chunks of the population. So organisations can direct all their resources only on a specific few demographics which are likely to be more profitable for them. Using email further brings down costs and increases the cost efficiency further.
- Adaptable :
There are a multitude of different demographics that a society can be segregated into, including age, gender, residence, etc. Once you have credible information on the different demographics in your potential customer base, you know how to change focus from one group to another and how to target the new one and redistribute the allocation of resources.
- Customisation :
Once the groups have been well defined, the marketing strategies do not need to be a message for the general mass and/or a simple value offering. The value offerings can be tailored to fit the requirements of each demographic based on information collected on that group in the past. This increases the chance of the message resonating with the regular customers and potential new ones.
- Lowering Expenses :
This type of marketing helps in saving up on the money spent on marketing itself. Using the Email as the platform for launching and carrying out their campaigns, the organisations can carry out direct marketing without even having to step a foot out of their offices. The whole thing being digital helps in lowering expenses further.
- Profiles :
Once the whole customer base(both existing and potential together) is divided into groups, it becomes easier for the whole board to understand the consumer profiles easily. So they have a much simpler task when it comes to the development of the strategies, in terms of the different departments collaborating in between themselves, including customer service, sales, management, etc.
- Precision :
The methods and techniques of collecting data in order to collect sample information on your customers had become very subtle and precise with the continued development of the digital world. Consumers are monitored constantly and the advent of tracking technologies like cookies, beacons and pixels means more precise data can be collected on the customers.
- Loyalty :
Since the organisation devoted it’s time completely on finding out what their customers like and dislike, and focusing simply on them, customers are much more likely to return for repeat business dealings. The educated customisations tend to strike a chord with the customers, making them also recommend their family and friends.
Disadvantages of Demography based Email Marketing
- Unintended Effects :
Personal reactions are extremely hard to gage, as large numbers of people make up each group and it is near impossible to find out the exact preferences of each individual. So the chance always remains that the business will offend customers. Customers might not want to receive any repeated mails and could become irritated with recurring material from an organisation.
- Reach :
Even though Emails are very far reaching, whether or not the organisations’ message actually reaches the eyes of the demographics is much trickier. Email settings of a person might result in the mails being tagged as spam, someone might simply delete them angered by the recurring messaging, the viewing screen may not display the message in the desired manner, etc.
- Time :
Demography-based means focusing on one specific segment, which means more time being devoted to formulating the marketing content. Unlike general content where the same approach is applied everywhere, separate chunks of time may be needed to be spent on preparing plans for tackling different groups, which can be a huge issue in the time consideration regarding encouragement of sales.
- Losing Potential Clients :
Categorising people into demographics always runs the risk of missing out on potential customers as they might have been grouped wrongly and/or the parameters for segmenting cannot encompass all traits. The marketing lost to the potential buyers outside of the specific demographic can severely hamper the business growth in the long term.
- Research :
To segment the marketing strategy based on demographics, there first need to be demographics. So extensive research needs to be conducted on your existing and potential customers based to decide on how to segment the customer base. This not only requires spending a huge number of man hours but also requires allocation of large sums of money.
- Considerations :
There can be ethical ramifications with segregating customer bases. For example a relatively small beer corporation might send it’s Emails to the lesser educated and poorer parts of the population based on the data collected on consumption, during the research period. Fizzy drinks companies can focus on the younger generation with colourful online campaigns, through social media platforms.
Putting all the pieces together it is completely evident that basing the whole marketing strategy on demographics, and that too via Emails, helps to save up on expenditures and make the whole process more cost efficient. However that also means being ready to face a host of problems. So it is better to find out if it suits your business style before diving into anything serious.