Beyond the Average Buyer: Why Demographics Don't Tell the Whole Story

Stop Relying Solely on Average Age for Marketing Decisions

We've all seen it: marketing strategies based solely on the "average buyer." But what if I told you this approach could be costing you dearly? Let's dive into why using just the average age is a misleading marketing tactic and explore a more insightful approach.

The Fallacy of the Average

Imagine you calculate the average age of your customers for the past year to be 60. Based on this single data point, you might tailor your media buys and marketing messages to target that specific age group. However, this approach ignores a crucial factor: standard deviation.

Standard Deviation: Unveiling the Buyer Distribution

Standard deviation tells you how spread out your data is from the average. Let's look at two scenarios:

Example 1: μ = 60 σ= 5

My average buyer is 60. My standard deviation is 5. 68% (strong majority of my buyers) are between the ages of 55 and 65. If we go σ2 ( two devastations or 95%) that would mean that 95% of my buyers are between the ages of 50 and 70.

Example 1: μ = 60 σ= 20

While the average stays at 60, a standard deviation of 20 paints a very different picture. Now, 68% of your buyers range between a much broader spectrum of 40 to 80 years old. At two standard deviations, the range widens even further, capturing buyers from 20 to 100 years old!

Why This Matters

These scenarios highlight a critical point: relying solely on the average age creates a misleading image of your customer base. A high standard deviation reveals a wider customer age range, necessitating a more nuanced marketing strategy.

Moving Beyond Averages: A Data-Driven Approach

By incorporating standard deviation, you gain a deeper understanding of your audience's age distribution. This allows you to:

• Segment Your Audience: Tailor messaging and media buys to specific age groups within your broader customer base.
• Avoid Ageism: Expand your reach beyond stereotypical age limitations and target potential customers you might have otherwise overlooked.
• Optimize Marketing Spend: Allocate resources more efficiently by focusing on channels that resonate with different age segments.

The Takeaway

Ditch the average age trap! Embrace the power of standard deviation to gain a richer understanding of your customer base. By implementing a data-driven approach, you can craft more effective marketing strategies that reach the right audience, at the right time.