Demographic segmentation: How to do it + 7 examples

Netflix doesn’t show the same content recommendations to a 60-year-old retiree and a 22-year-old fresh graduate. And there’s a reason for that. A 60-year-old retiree and a 22-year-old graduate likely have very different tastes in films and TV shows. Of course, there will be outliers, but for the most part, there’s an inherent difference.

This is an example of demographic segmentation in play. 

You’re basically grouping your target audience based on measurable (and provable) traits like age, gender, income, education level, and marital status. While other segmentation styles, like psychographics (how people think and feel) and behavioural (how people act) all bring their own flavour to the party, demographic segmentation remains the bread and butter of customer grouping. 

Why? Because it’s based on cold, hard facts rather than squishy stuff like opinions and behaviours. When you know Linda is a 45-year-old marketing executive making £120,000 a year with two teens at home, you can create content and products that speak directly to her situation. 

What is demographic segmentation? 

Demographic segmentation involves splitting your audience into groups based on who they are as people. It uses concrete facts, like how old they are, whether they’re married, and how much money they make rather than their shopping habits and online behaviour. 

If you’re selling luxury watches, you probably want to focus on folks with disposable income and certain career positions. You wouldn’t market a £10,000 watch to college students living on ramen, right? 

The beauty of this type of segmentation is it’s all based on real, measurable facts. Unlike trying to guess how people feel about things or what they might do on weekends, demographic data is very straightforward. You’re either 35 or you’re not. You either make £80k a year or you don’t. 

While it might seem basic compared to fancier ways of grouping customers (like looking at their shopping habits or lifestyle choices), demographic segmentation is still the foundation of good marketing. A lot of brands start here because it’s just practical. 

Why demographic segmentation is important 

If you’re still blasting the same message to everyone and hoping it sticks, we need to talk. Grouping people based on their current life situation, age, and location, helps you build better relationships and deliver campaigns that really resonate with them. 

You can personalise the shopping experience

When you know exactly who you’re talking to, you can craft messages that feel like they’re written just for those people. A 25-year-old single professional in their first job has totally different needs, problems, and spending habits than a 45-year-old parent with three kids in private school. Why would you talk to them in the same way? 

Segmenting customers based on their demographic attributes means you can use the right language and promote the right products. 

See a detailed breakdown of personalisation examples here. 

You stop throwing money down the drain

You’ll find that every pound works harder because you’re targeting people who might actually buy your stuff. 

Just think about that luxury watch situation. If you’re advertising to anyone and everyone, there’s a good chance you’ll put off people who aren’t in a financial situation to purchase. Instead, demographic segmentation lets you target only the people who a) have enough money and b) are in a situation where they can buy a luxury timepiece. 

You can speak their language and stay relevant 

Seven out of 10 shoppers tend to buy from brands that understand and reflect their personal values. A huge part of this is using words and phrases that resonate with the people you’re targeting. For example, if you know your audience is primarily millennial mums in tech, you can drop the corporate jargon and talk about juggling Slack notifications with football practice. 

Your conversion rates improve

People are way more likely to click that “Buy Now” button when your messaging resonates with their life situation. Better targeting usually always means better results. In fact, research has shown that demographic segmentation can increase conversion rates by as much as 30%. 

You can develop the right products

Knowing your demographic helps you create products people actually want. If your data shows your audience is primarily 20-something fitness fans, you can build a product line that directly correlates to their wants and needs. 

You can create a better customer experience

Everyone wants to feel like they’re understood. When you segment your audience by demographic data, you can customise everything from your email subject lines to your customer service approach so they match your audience’s preferences and expectations. 

The advantages and disadvantages of demographic segmentation 

While demographic data certainly has its pros, there are also some downsides to watch out for. 

The good stuff: 

• Easy data collection. This info is easy to get hold of and use in your campaigns. 
• Cost-effective. Demographic data is pretty cheap to gather compared to complex behavioural analyses or psychographic deep dives. 
• Simple implementation. Demographic segmentation is practical and straightforward—you don’t need a PhD to understand that a 20-year-old uni student isn’t in the market for a retirement home. 
• Easy to scale. Whether you’re targeting 100 people or 100,000 people, the principles of demographic segmentation stay the same. 

The not-so-great stuff: 

• Can be basic. Just because two people are 35-year-old managers, it doesn’t mean they like the same things. 
• People are complex. Demographics don’t tell you everything. A high-income executive might be surprisingly frugal, while a middle-income teacher might splurge on luxury items. 
• Changes happen quickly. Someone’s demographic status can flip overnight. Promotions, job changes, marriages, and relocations happen all the time and can mess up your carefully segmented lists. 
• Missing the emotional piece. People don’t buy purely based on their demographic profile. Sometimes a broke uni student will save up for months for that designer bag because of how it makes them feel. 

7 types of demographic segmentation (with examples)

Because demographic data is based on cold, hard facts, there are only a handful of ways you can differentiate between customers. Here are the most common. 

1. Age

Segmenting by age lets you target customers based on generational traits, preferences, and even pop culture references. 

Age groups often share similar attitudes, spending habits, and needs. For instance, a skincare brand might create separate marketing campaigns for Gen Z, who are just starting to explore skincare, and Boomers, who may focus more on anti-aging products. 

Example: Zesty skincare promotes a range of “youthful” and “anti-aging” products for an older audience. 

2. Gender

Gender-based segmentation involves tailoring products or marketing strategies to appeal specifically to men, women, or non-binary individuals. 

Clothing brands, for instance, often create gender-specific lines that reflect certain style preferences and fashion trends for each group. But it’s not just about traditional categories—brands increasingly recognise that consumers don’t fit neatly into “male” or “female” boxes. Take makeup brand Fenty Beauty, which markets itself as inclusive for all genders, demonstrating a modern approach to gender segmentation that reflects evolving views.

Example: Harrys and Billies both sell razors, but clearly target different genders. 

3. Income

Income segmentation groups audiences based on their earning potential, which often influences their purchasing power and spending behaviour. 

Luxury brands, for example, target higher-income groups by highlighting exclusivity, quality, and status, while budget-conscious brands, like discount supermarkets, focus on value and affordability for lower-income groups. 

Example: Joonbyrd targets high-income folk with its luxury price tags and elegant product photography. 

4. Occupation

Occupation-based segmentation is most commonly seen in B2B marketing but can be powerful in B2C as well. 

For instance, productivity tool providers, like Slack or Asana, often target their marketing towards business professionals, team leaders, and freelancers, tailoring messages that highlight productivity, collaboration, and efficiency. 

Even in consumer marketing, certain jobs may influence buying decisions. A travel company could target teachers and offer discounts specifically for the summer holidays or half terms, knowing this group is more likely to have the time and desire to travel at these times.

Example: One of B&Q’s latest ad campaigns targets tradespeople who are doing more complicated jobs than the average DIYer. Each ad sees a tradesperson reciting a list of goods needed for specific home improvement jobs—using “builders tongue”. 

5. Language

Language segmentation is obviously important if you want to expand into international markets, but it also applies to brands operating in multilingual regions. 

By tailoring content to the language spoken by your target audience, you can build trust and make sure your message doesn’t get lost in translation. 

Example: H&M’s website uses the language specific to the region a shopper is in. 

6. Education level 

​​Targeting shoppers based on their education level means you can hone in on people with specific qualifications or those at a certain point in their lives. 

A meal plan brand catering to uni students might use language related to studying, coursework, and general uni life, whereas another brand catering to high-flying execs might use different phrases and positioning. 

Example: Gym+Coffee has a campaign especially for uni students that gives them 10% off any purchases made through the brand. 

7. Marital status

Marital status is often used to create campaigns around major life events, like getting married or starting a family. 

A furniture company, for example, might target newlyweds by offering special packages for furnishing a first home, while a travel company might focus on family-friendly vacation packages to appeal to parents with young children.

Example: Haute Flowers has a whole section on its website dedicated to anniversary flowers. 

How to segment your audience based on demographic data 

When done right, demographic segmentation helps you focus your efforts on the people who are most likely to connect with your brand and buy from you. 

Here’s how to approach it for best results. 

Gather data

First things first, you need to gather relevant data on your customers. 

This can include demographics, purchase history, online behaviours, and even engagement with your emails or SMS messages. 

Note here that data collection doesn’t mean getting as much information as possible. You need to handle personal data with care so you comply with GDPR (General Data Protection Regulation) in the UK and EU, or CPRA (California Privacy Rights Act) in the US. 

The easiest way to do this is to get customer consent upfront and be very clear about how you’ll use their data. 

Tip #1: Klaviyo’s segmentation tool integrates compliance features so you can manage data responsibly and get all the insights you need. 

Here are some upfront ways to collect demographic data: 

• Sign-up forms. Don’t ask for their life story—keep it to the essentials.
• Account profiles. Looking at you, Netflix, with your clever “who’s watching?” profiles.
• Customer surveys. Slip those demographic Qs in between the “how did you hear about us?” stuff.
• Newsletter subscriptions. A perfect time to grab some basic info.
• Loyalty programs. People will share more when they know they’re getting perks.

Tip #2: Use a Customer Data Platform (CDP) like Klaviyo’s. It provides demographic data by collecting and consolidating customer info from multiple sources (like emails, SMS, social media, transactions, and loyalty programs) into a single customer profile. 

Use a segmentation tool 

Segmenting manually is time-consuming and complex, especially when your customer base starts to grow. 

This is where a powerful tool like Klaviyo’s Advanced Omnichannel Segmentation comes in. Our tool lets you create dynamic, data-driven segments based on behaviours, preferences, and lifecycle stages, all in one place. Plus, it’s incredibly intuitive to use (even if we do say so ourselves), so you can set up and adjust segments without needing a technical background.

One of Klaviyo’s unique selling points is its ability to create hyper-targeted segments across multiple channels—whether that’s email, SMS, or push notifications—so you can reach customers with the right message, at the right time, and on the right platform. 

Practice dynamic segmentation 

Customer data isn’t static. Preferences, behaviours, and needs change over time—sometimes on a near-daily basis. 

Dynamic segmentation lets you automatically adjust your targeting based on these changes. With Klaviyo’s advanced segmentation, each segment updates in real-time, so you don’t need to constantly monitor and adjust. 

For example, if a customer’s purchasing frequency drops, Klaviyo’s tool can automatically move them into a “win-back” segment and trigger a tailored re-engagement campaign. This kind of real-time adaptability makes sure you’re always meeting your customers where they are in their journey with your brand.

When you use Klaviyo’s segmentation feature, you’re not just setting up a “one-size-fits-all” solution. You’re building a personalised, scalable segmentation strategy that adapts to each customer’s journey, helping you drive more targeted campaigns that convert. 

Ps. For more information, check out Klaviyo’s Segmentation feature page. 

5 segmentation tools and how they stack up

Tool	Key features	Price	Best for	Unique selling points
Klaviyo	Advanced segmentation, omnichannel automation, predictive analytics, dynamic content personalisation.	Starts free for small lists; paid plans from £35/month for emails.	Ecommerce brands looking to build relationships with tailored, data-driven campaigns.	Predictive analytics for in-depth customer insights, powerful integrations with ecommerce platforms, rich in email and SMS capabilities.
HubSpot	Customisable segmentation, CRM integration, email automation, customer behaviour tracking, sales tools.	Free for basic tools; paid Marketing Hub Starter package starts at £14/month.	Small to mid-sized businesses and B2B companies needed CRM-focused marketing automation.	Strong CRM focus with deep segmentation based on customer lifecycle and behavioural data across email, social, and web.
Mailchimp	Audience segmentation, email personalisation, A/B testing, built-in analytics, retargeting ads.	Free for basic; Essentials plan from £9.99/month based on number of contacts.	Small businesses and startups looking for user-friendly email marketing and basic segmentation.	Simple, beginner-friendly platform with a range of email automation tools and easy integrations with social ads.
ActiveCampaign	Customer segmentation, automation map visualisation, conditional content, CRM features, and SMS marketing.	Starter plan starts from £12/month.	Companies wanting sophisticated automation with CRM functionality.	Strong automation features with “if/then” logic for advanced workflows, unique customer experience automation.
Segment	Advanced data collection, customer profiles, integrations with over 200 tools, real-time analytics.	Team plan from £92/month, free for basic use.	Enterprise and tech-savvy companies needing deep data collection and cross-platform tracking.	Robust integrations for syncing data across marketing and product tools, excelllent for product analytics.

Demographic segmentation is the bedrock of marketing 

When you list it out as a series of attributes, demographic segmentation seems pretty simple. But by categorising your audience based on concrete facts like age, income, and life stage, you can make sure your message hits the right notes with the right people. 

And, when you speak directly to someone’s life situation—whether it’s a millennial professional just starting out or a high-income exec with specific needs—you’re more likely to build strong connections that turn into long-term loyalty. 

While demographic data offers a solid starting point, it’s important to recognise its potential limitations. People are complex, and real human behaviour often goes beyond the basics of age or job title. Combining demographic insights with other segmentation strategies, like psychographics and behaviour lets you address both who customers are and what they truly care about. 

This dynamic approach creates a richer, more accurate picture of your audience so you can create campaigns that feel relevant, respectful, and resonant. 

And Klaviyo’s Advanced Segmentation tool is on hand to help. With features like dynamic segmentation and predictive analytics, you can evolve alongside your customers and deliver personalised experiences across every touchpoint.