Business Demographics

Why Business Demographics?

Growing importance in business and economics.• Strategic advantage• Explanatory power

A “sleeper” discipline• Not widely taught• The “applied” advantage

Broad applicability

Applications

Site Selection Human Resources Planning Trade Area Assessment Sales Territory Alignment Strategic Planning Target Marketing Logistics Financial Planning Economic Development

How Consumer’s Create Data

Buying Behavior

Psychographics

Demographics

Consumer

Media Preferences

Completes Census Makes Purchase

Reads, Watches, Listens, Surfs Answers Surveys

The Big Picture

Demographics – Who are they and where do they Live?

Buying Behavior – What do they buy?

Media Preferences – How can we reach them?

Psychographics – What should we say to them?

The Essentials for Business Use

Data Integration

Demographic Perspective

Actionable Presentation

Data Integration

Business Unit Data• Sales• Accounting• Applications• Website Registrations• Marketing Research• Competitive Analysis• Even Checks with ZipCodes

Processed to conform with demographic tabulations Added to Customer Records

• Address Correction• Merge / Purge / Dedupe• Match & Append

Data Integration Example

Data Integration Example

Education, Health Care, Social Services

Retail trade

Professional, Managerial, Administrative

Finance, insurance, Real Estate

Manufacturing

Arts, entertainment, Food Service

0% 10% 20% 30% 40% 50%

Customers

Trade Area

Sources: U.S. Census Bureau, 2006-2008 American Community Survey and Internal data

Trade Area vs. Customer Base by Industry

The Demographic Perspective

Connects Demographics to Business

Rigorous and Analytic

Decision Focused

Action Oriented

Demographic Perspective ExampleA blinding flash of the obvious …

The Baby Boom, Boom, Boom

Demographic Perspective ExampleA blinding flash of the obvious …

The Baby Boom, Boom, Boom

• 1940’s• 1941 - A million cans

of baby food a week

• 2010’s and beyond• Weight-Management• Travel• Errand Services• Financial Advice• Specialty Contractors

• 1948 - Two million cans a day

• Beauty Salon/Spa• Cosmeceuticals• Health Clubs• 'Active Adults'

Residences

Demographic Perspective Example

The Baby Boom, Boom, Boom - The Dark Side

Average Annual Spending 65-74 Age Cohort

Actionable Presentation

Simple enough for Senior Management to Understand

• Simple tabulations

• Graphs & Charts

• Maps. Maps. Maps.

Actionable Presentation Example

The Power of Thematic Mapping

Visualizing a Trade Area

Actionable Presentation Example

The Power of Thematic Mapping

Visualizing Market Potential

Strategies

Customer Profiles Executable Segmentation Market Sizing Cloning Net Names Precise Targeting Opportunity Analysis Sales Support List selection Et Cetera, Et Cetera, and so forth

Selected Public Data Sources

Bureau of the Census

Bureau of Labor Statistics

Bureau of Economic Analysis

National Center for Health Statistics

National Center for Educational Statistics

Internal Revenue Service

Federal Reserve System

National Agricultural Statistics Service

International Trade Administration

Many Others

Bureau of the Census

A Good Starting Point• Decennial Census

• Can be pretty dated for business use• American Community Survey

• Good Currency• Better to use 3 and 5 year averages

• www.census.gov

Bureau of the Census

Economic Census• Every 5 years – years ending in 2 and 7• Consistent since 1967• Establishment Data• NAIC codes• www.census.gov/econ/census02/

Bureau of the Census

Current Population Survey• Monthly• 50,000 Households• Mainly Labor Force Characteristics• www.census.gov/cps/ • Confidence Intervals

Bureau of Labor Statistics

Consumer Spending – CES• www.bls.gov/cex/

Inflation Wages & Benefits Productivity Occupations Safety and Health www.bls.gov/

National Center for Health Statistics

Population Health Status• Morbidity• Mortality

Health Care Public Policy Research Links to Registration Data by State www.cdc.gov/nchs

National Center for Educational Statistics Enrollment Attainment District Data Education Trends www.nces.ed.gov/

Federal Reserve System

Home Mortgage Disclosure Act Data Consumer Credit Household Debt Survey of Consumer Finances www.federalreserve.gov

Selected State Level Sources

General• www.nebraska.gov

Labor• http://www.dol.nebraska.gov/ Click on Labor Market Information

Economic Development• www.neded.org/

Selected Local Level Sources

General• www.omahachamber.org

Transportation, building permits, aerials• www.mapacog.org

Health & Human Services• www.uwmidlands.org

Selected Private Data Sources

Population Reference Bureau• www.prb.org

American Heart Association• www.americanheart.org

Guttmacher Institute (reproductive health) • www.guttmacher.org

National Education Association • www.nea.org

Selected Commercial Vendors

Dun and Bradstreet• http://dnb.com/us/

Infogroup / InfoUSA• www.infousa.com

Claritas• www.claritas.com

ESRI• http://redlandsbao93.esri.com/BAO93/main.map

Other Sources

Search engines• http://www.istrategylabs.com/2010/01/facebook-de

mographics-and-statistics-report-2010-145-growth-in-1-year/

Trade and Industry Associations• http://www.ustravel.org/news/press-releases/comp

rehensive-travel-and-tourism-study-gays-and-lesbians-highlights-leisure-trav

Retail Food Example

• British retailer’s U.S. Expansion

• Analysis of first sites• Population & Density• Earnings• Race/Ethnicity• Income Sources

• Expansion Recommendations• Two specific cities• Intersection selections

Used Land View 6 for radius data , ACS, 2000 Census, company data and published reports.

Workforce Example

• Generation Gaps in the Workplace

• Life expectancy• Workforce participation• Geographic distribution

• Generational / Cohort Differences

• Challenges and Opportunities

• Recommendations for Managers

Used Urban Institute, Bureau of Economic Analysis, Bureau of Labor Statistics, Census Data plus work of generational theorists.

Baby Boomer Example

• “Hip” Apparel for Baby Boomers

• Analysis:• Spending Patterns• Attitudes• Life Styles• Values

• Youth Orientation

• Propensity to spend on appearance

• Recommendations for clothing line

Used Metlife Mature Market Institute, Bureau of Labor Statistics Consumer Expenditure Survey, Roper AARP Survey, American Society of Plastic Surgeons, Food Marketing Institute, Census.

Local Site Selection Example

• New Omaha Carwash Business

• Characteristics of car washers• Age• Income• Household Size• Marital Status

• 12 potential sites analyzed• Characteristics in each radii• Aggregate Rating & Ranking

• Competitor Locations identified

Used International Car Wash Association data, City of Omaha Metro Traffic Flow data, Land View 6 and InfoGroup counts.

Questions?