23 May Insights on Demographic Data
While business analysts have touted the importance of demographic data for decades, the relatively recent explosion of information available has changed the game a bit. No longer are consumers analyzed by just their age, gender, or location. Now, with an increasingly online world, it’s not so easy to categorize based on census check boxes. With technology readily collecting data on every day spending habits, browsing habits, and even where we spend our time, it’s easier than ever for companies to market to micro segments. For this reason, insights on demographic data have never been more important.
In the fast food industry, it’s become commonplace to target the young professional demographic. This is not just comprised of millennials, but also of Gen Z, their younger counterparts who are entering the workforce. Many brands are catering to these consumers, with a focus on food quality and quality of ingredients. The appeal for the fast food companies is that by homing in on this demographic data, and doing so well, allows them to create a brand that panders to the younger crowd, but that will also attract consumers from multi generations.
Just because a fast food brand is aimed at a younger demographic, doesn’t mean that older demographics won’t also have similar values and be attracted to the marketing. A baby boomer who is concerned about food quality will also be attracted to a fast food chain that markets itself as such, as will a Gen Xer who values unique menu options. The point is that by having insights into one specific demographic, fast food companies are able to create consistent offerings and brand marketing pieces that are so clear in their value and offerings, that they will stand out from the competition.
Demographic data is also showing how different groups have different drivers when it comes to their fast food choices. For example, women are more likely to value quality ingredients over speed, versus their male counterparts. Income brackets are another determining data piece worth examining. Consumers with lower earnings chose evolving value drivers over traditional ones far less often, compared to consumers who make more than $100,000 a year.
One demographic data piece that seems to remain consistent over the years is that families still value quick fare. While the menu options may have changed, from just hamburger offerings to now Mexican and beyond, busy families who don’t have time to cook a meal at home remain.
For players in the fast food industry to remain competitive and relevant, they will need to consider the insights on demographic data that are available to them. Understanding the trends that the data is showing, such as evolving value drivers for millennials, and knowing how to position their brand accordingly, could mean the difference between becoming obsolete, and a flourishing healthy business.