While the census may reside in the realm of the government, there are many ways that census data can be beneficial to the private sector. Knowing and responding to the unique characteristics of a business’s market is necessary for staying relevant and competitive. Here are three areas where businesses can capitalize on the demographic trends, shifts, and insights revealed by census data and bolster strategic decision making.
Marketing
Market research can be expensive and time consuming. Many small businesses may not even have the resources available to dedicate towards extensive marketing initiatives. Here, census data proves highly useful. A census does all the hard collecting work and can help inform a marketing strategy by providing information about a geographical population such as age, education, income, employment, housing, and household composition. Analyzing this data alongside information from other sources a business may track, such as transaction type and amount, can point to areas that may benefit from an extra advertising push or even help with product development and service improvement. Knowing the demographic makeup of a market allows a business to speak directly and relevantly to its consumer base, increasing the efficacy of their brand message and position.
Expansion
Business intelligence tools and data analytics are helpful for harnessing the vast amount of information that is generated by the movements and characteristics of a population within a market. These characteristics can be especially helpful in determining a new location for a business to expand to. Census data can be used by a business to locate new markets and to better focus employee recruiting efforts.
Forecasting
Population statistics also help bolster financial forecasts of demand and revenue which are essential in developing long-range business goals. Analyzing the features and tracking the behaviors of a business’s clientele helps to evaluate the potential in both current and new markets, determine the feasibility of new business ventures, pave the road for expansion, and prevent losses by making well-informed decisions.
Statistics and analyses culled from population data can be quite enlightening tools for businesses. Consumer profiles can be crafted from this information, helping to focus marketing strategies, identify potential areas for expansion, and create long-term business plans. However, the sheer volume of data may pose a challenge to effective analysis and application. While the internet makes census data more readily available and understandable, it is important to develop a clear model for integrating population statistics into individual business strategies.
