What exactly is "CRM data segmentation by demographics"?

We welcome you to the world of CRM data segmentation by demography where each entity whether an individual or a corporate is dealt with individually for its uniqueness, wants, wishes and utility.

Till now the segmentation was mostly price driven.

Enter CRM, a systematized, software-driven endeavor to collect, store and collate data on clients which today helps not only in streamlining client information but also helps gauge demographic patterns which helps marketers fine tune their efforts towards specific individuals and markets segments which helps get better results than sending the same information to one and all with bare-minimum segmentation.

Instead of sending humongous numbers of e-mails or trying to occupy eyeballs on social networking sights, marketers target those individuals and entities who they are sure would require the service and/ or product on offer. Demography ie the pattern of people’s existence in an area, is thus the basis for making these decisions. Pattern of existence may be related to educational levels, income levels, types of employment, ownership of asset and its types, type of investments and saving avenues utilized etc.

Not all services and products require segmentation like entertainment through television, usage of gas, electricity, telephones etc. These mostly fall in the category of basics. Moving steadily up the ladder, income levels increase and so does the propensity to consume and expectation from services.

Keeping this in mind as also to reduce time to roll-out services and cut cost, marketers have started to segment the market and sell specialized products to those they think are most likely to consume it. These may not only be in terms of products but also specialized services like insurance, banking, brokerage, consultation etc.

The advantages are too obvious.


  • Hit the bull’s eye and get results faster
  • Decrease size of CRM data to manageable levels
  • Smaller set-ups help save money with reduced turn-around times.
  • Better client servicing as more products can be added depending on client’s requirement.
  • Specialization helps reduce costs which can be passed on to the clients

This then is the modern equivalent of the famous “Divide and Rule” policy which says “DIVIDED WE STAND”!

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