Market Segmentation by Demographics

Most brands are targeting Gen Z wrong. After analyzing hundreds of campaigns across the Middle East, I've noticed the same fundamental mistake everywhere. Marketers treat "Gen Z" like it's one ONE group when it's actually three completely different audiences with different motivations, spending power, and media consumption habits. An 18-year-old university student in Dubai has completely different priorities than a 26-year-old working professional in Saudi Arabia.  Yet brands keep using the same messaging for both. Here's how it should be segmented  - School Gen Z (13-18) prioritize social status and trending culture. They have parental money but limited decision-making power. - College Gen Z (18-22) are exploring identity and independence. They have almost no disposable income but high engagement rates. - Working Gen Z (22-28) have established careers and real purchasing power. They want efficiency and quality over trends. The brands winning understand this: Netflix creates different Arabic content for each segment.  → Teen dramas for school Gen Z,  → University life shows for college students,  → Professional development content for working Gen Z. Namshi runs separate campaigns. Trendy pieces for teenagers, budget-friendly basics for students, and work-appropriate fashion for professionals. Anghami curates different playlists - study music for college kids, workout tracks for working professionals, and viral sounds for teenagers. When you segment properly, engagement rates increase by 200-300% because your message actually resonates with your audience's specific life stage.

All eyes are on Chinese consumers — is consumer confidence rising or falling? How much impact do subsidies and trade-in programs have on long-term consumption patterns? What we can tell for certain is that there is a ‘new normal’ emerging. At the end of 2024 McKinsey surveyed over 17,000 consumers across 108 groups based on city tier, age, and income The findings illustrate three major themes: 1️⃣ Consumers are adapting, not retreating. While overall growth expectations remain cautious at 2.3%, specific sectors like travel, dining, and health are showing real resilience. People aren't cutting spending—they're being more strategic about it. 2️⃣ Confidence has stabilized, but it's highly segmented. Rural consumers saw income jump 6.6% in 2024 and feel optimistic. Affluent older urbanites = hit harder by asset losses. Low-income Millennials in tier-1 cities remain pessimistic. Gen Z in lower-tier cities stays surprisingly upbeat despite job concerns. 3️⃣ The shift toward personal fulfillment is real. Affluent urban consumers plan to increase daily spending by 2.6% in 2025, prioritizing both tangible upgrades (housing, cars) and intangible experiences that deliver joy and achievement. They're willing to dip into savings to maintain quality of life. ���� For brands, this isn't about the overall market—it's about precision. Rural vs. urban. Generational divides. Income tiers.

The last thing you should EVER be doing as a serious business owner: Sending the same email to your entire list. Segmented campaigns generate 58% more revenue than non-segmented ones. Yet most brands only segment by purchase history. Here's how we go deeper: (1) By purchase behavior → new customers get different content than repeat buyers. VIPs get exclusive access. (2) By demographics → men and women get completely different product recommendations. (3) By engagement level → highly engaged subscribers get more frequent emails. Less engaged get fewer but higher-value emails to re-engage them. Start simple: • New vs returning customers. High vs low spenders. Engaged vs unengaged subscribers. • Then layer in more segments based on behavior and preferences over time. The more data you collect, the more personal every email feels. And emails that feel personal get opened, clicked, and converted.

Whenever we acquire a multifamily community and develop a business plan for it, we start with one question: who is our renter? Demographics shape everything. Important nationwide housing trends to note: ▪️ 18 to 28 year-olds represent 47% of all renters ▪️ Pet owners represent 66% of renters, with 51% owning dogs and 37% owning cats ▪️ Retirees represent 25% of all renters ▪️ Active fitness people represent 25% of all renters ▪️ Single tenants represent 38.1% of all renters ▪️ Renters seeking eco-friendly apartments represent 65% of all renters But national statistics only tell part of the story. Each market and property has its own unique demographics that it caters too. Every one of our acquisitions is its own story to be written based on the unit mix and market demos - as we craft the business plan we do it with our audience in mind - which is the demos. One step in our detailed market study is focused on dog owners - we go to all the comps and ask what % of renters have dogs and look at their dog park setup. If it's a high percentage, it's an amenity we go above and beyond on and ensure our community will have the biggest and best dog parks. If we are in a good school area and our unit mix skews higher to 2 and 3 beds - we will go above and beyond to make sure we have the biggest and best playground. Top questions we ask include: ▪️ What percentage of renters in the area have pets? ▪️ What's the family composition? (areas with good schools require different unit mixes and amenities) ▪️ What percentage of the local workforce is remote? (impacts demand for work-from-home spaces) ▪️ How do people commute? Are we near a retail area - if so we will include bikes for the community? ▪️ Are we next to a park? If so we will offer an array of toys for the community to use at the park. ▪️ Is it an area with a large creative professional population? We prioritize flexible spaces that can double as home studios or collaborative areas. The impact of getting this right is substantial. Properties with amenities properly aligned to local demographics are proven to see MUCH faster lease-ups, more demand = higher rents and significantly reduced turnover. Units and amenities that perfectly serve one market usually are completely different in another. Any other questions not listed above that we should ask?

During my Diwali break, I travelled through 𝐭𝐡𝐫𝐞𝐞 𝐯𝐞𝐫𝐬𝐢𝐨𝐧𝐬 𝐨𝐟 𝐈𝐧𝐝𝐢𝐚. Each felt like a different world, with unique needs, spending power, and ways of life. And as a Product Manager, it got me thinking—how do we design solutions for such a diverse country? Here’s what I observed about 𝐈𝐧𝐝𝐢𝐚 1, 2, 𝐚𝐧𝐝 3: 𝐈𝐧𝐝𝐢𝐚 1: 𝐓𝐡𝐞 𝐚𝐟𝐟𝐥𝐮𝐞𝐧𝐭 𝐜𝐥𝐚𝐬𝐬 ↳ The top 1%. Urban, well-connected, and ready to spend. ↳ They look for quality, personalization, and exclusivity. ↳ Their lifestyle is digital-first—they expect seamless, high-end experiences. 𝐈𝐧𝐝𝐢𝐚 2: 𝐓𝐡𝐞 𝐚𝐬𝐩𝐢𝐫𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐦𝐢𝐝𝐝𝐥𝐞 𝐜𝐥𝐚𝐬𝐬 ↳ Roughly 14% of the population—tech-savvy yet price-conscious. ↳ They want value and quality at a fair price. ↳ They use both online and offline channels, making omni-channel approaches key. 𝐈𝐧𝐝𝐢𝐚 3: 𝐓𝐡𝐞 𝐮𝐧𝐝𝐞𝐫𝐬𝐞𝐫𝐯𝐞𝐝 𝐦𝐚𝐣𝐨𝐫𝐢𝐭𝐲 ↳ The largest group, mainly rural or in lower-income urban areas. ↳ They focus on daily essentials and often face tech access gaps. ↳ Products here need to be affordable, accessible, and truly practical. The India 1, 2, and 3 shows us why one-size-fits-all doesn’t work in India. As product managers, we need to think locally and meet each segment where they are. I created a carousel to break down how to approach each of these segments—check it out and let’s talk about building products that fit real needs across diverse groups. #ProductManagement #MarketSegmentation #CustomerInsights #DiwaliJourney

Day 4 - CRO series Strategy development ➡Audience Segmentation Most marketing campaigns fail because they try to reach everyone. Smart businesses know that not all customers are the same. Here’s how to segment your audience for better targeting: 1. Define Your Segmentation Criteria Break your audience into meaningful groups based on: ◾ Demographics → Age, gender, income, education ◾ Geographic Location → Country, city, region ◾ Behavioural Data → Purchase history, engagement levels ◾ Psychographics → Values, interests, lifestyle choices The more precise the segmentation, the more effective the targeting. 2. Collect Audience Data Use multiple sources to understand your customers: ◾ Surveys & Interviews → Direct feedback from customers ◾ Website Analytics → Google Analytics, heatmaps, session recordings ◾ CRM Systems → Customer history, interactions, and purchase patterns Data removes guesswork. 3. Analyze the Data & Identify Patterns Look for trends: ◾ Are certain groups more likely to convert? ◾ Who engages most with your brand? ◾ What common traits do your best customers share? These insights form the foundation of strong segmentation. 4. Create Customer Segments Group people based on similar characteristics. Examples: ◾ High-value customers → Frequent buyers with high purchase amounts ◾ Engaged followers → Customers who interact on social media ◾ New leads → First-time website visitors Each segment requires a different marketing approach. 5. Develop Targeted Strategies Personalization is key. ◾ Young professionals? Use social media ads & video content. ◾ Older customers? Email campaigns may work better. ◾ High spenders? Loyalty programs & VIP offers. Speak to each segment in their language, on their preferred platform. 6. Test, Measure, and Optimize Not all strategies work equally. ◾ A/B test different messages within segments ◾ Track conversion rates, engagement, and retention ◾ Refine based on what performs best Optimization is an ongoing process. Why Segmentation Matters ✔ More Relevant Marketing → Customers receive messages tailored to them ✔ Higher Engagement & Conversions → People respond to what feels personalized ✔ Optimized Marketing Spend → Invest in what works for each segment ✔ Better Customer Experience → Customers feel understood and valued Businesses that segment their audience don’t just market better— They sell smarter. Are you using segmentation in your marketing? Share your thoughts below. See you tomorrow! P.S: If you have any questions related to CRO and want to discuss your CRO growth or strategy, Book a consultation call (Absolutely free) with me (Link in bio)