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J.D. Power and Associates published a white paper in April about “The Death of Demographics: Why Targeting by Purchase Behavior is M... This comes as no surprise to those within the digital marketing field, because the onset of so much new technology has shifted the way marketing power is focused.
Looking at demographics such as gender, age, and income are no longer enough for informing on the best marketing and advertizing practices. We need data on the consumer lifecycle. We need to be able to look at and measure the consumer’s buying behavior to predict how and when they are going to buy in the future.
Sophisticated digital marketing technology can see what websites a consumer is visiting or what other products they are buying, not just look at listed specifics that don’t delve into the truth of who the consumer is and how they buy.
“Demographics, more so than many other tools, has proven to be a much less effective tool in the automotive space, particularly with regard to new-vehicle buyers. The most popular models overall are typically the most popular regardless of the particular demographic.”
“With all of this media fragmentation and product and lifestyle diversity, targeting by purchase behavior has emerged as a more effective means of marketing to a specific audience. This is much more effective than the use of demographics, and even more precise than psychographics. By understanding the media consumption of recent new-vehicle purchasers, it is possible to target future new-vehicle buyers using that same medium.”
J.D. Power and Associates found that purchase behavior was a much more effective tool for segmenting their marketing tactics than demographics, especially when targeting new customers. However you communicate with your customers, whether traditional media, email marketing, or mobile, make sure the messages you are sending are the right ones for the right consumers.
While the many industries are changing as we shift toward digital marketing and away from demographic profiling, one thing remains the same: You have to know your customers to market to them effectively.
Read the full pdf of the J.D. Power and Associates white paper here.