The value of demographic information

Keith Dugmore, Demographic User Group

The Census provides an essential foundation for many business decisions. Whether it is used for targeting local areas, households or survey interviews, it provides essential information that enables companies to focus on areas of greatest return. This does not always mean selecting the most affluent areas or people – factors such as market size and the extent of competition will also determine the size of the opportunity – but the accurate assessment of the population is an indispensable starting point.

Underpinning commercial decisions involving billions of pounds of investment every year, the Census is now regarded as a foundation of area analysis among commercial organisations quick to recognise the value of demographic information – not just for store location, but also in local marketing campaigns.

Since the last full count ten years ago many sample surveys have pointed to significant social changes at both national and regional levels. The 2001 Census provides unprecedented detail about the UK’s current population and a significant rise in take-up by retailers is anticipated.

Retail investment provides a particularly vivid example of the importance of getting decisions right, but it is just one of several areas where the use of Census information can help to target the best opportunities and to avoid those where investment would be squandered. When used with geographic data and contextual mapping, it can serve to address such vital questions as:

• Who are our best customers?
• Where are our best customers?
• Who are our best prospects?
• Where are our best prospects?
• What do they want in terms of products and services?
• Where are the best places for our new outlets?
• Which branches should we close?
• What products and services should we be offering in each of our existing stores?
• Where should we advertise?
• Which areas and people should we survey?

The advent of this data will have a great impact, both amongst established users and also in creating new markets by attracting those who have not previously used the data.