How Businesses use Demographic Data To Increase Sales and ROI

US personal income rose 2.6 percent last month, the largest increase in eight years, according to the Commerce Department. Although tax increases are due to start this month, the increase is still well above the 0.8 percent expectation. How do businesses use income information to increase their own sales and ROI? They look at a demographic map.

Census.gov features tools to visualize certain census data. “Islands of High Income” is an interactive map showing median income across the US. Viewers move the sliders to see counties of the US that have median household income greater than any increment between $18,000 and $110,000. However, data sources are from 2006-2010, so the visualization is a very general overview of the state of median household incomes across the US.

Businesses looking for up-to-date and more accurate data usually have to do the work themselves. With new technology, it’s becoming easier and easier for businesses to receive up-to-date data and maps.  Demographic Wall Maps of any County, State, or custom area in the US show population, median household income, number of households and median age within that area.

Businesses use these maps to understand their target markets in their areas, targeting areas with a certain income level or of a certain age group to increase sales. They add sales and order data to understand where their customers are already located. 

Using demographic data is not only for large businesses with an expert dedicated to geographic information systems (GIS); mapping data is becoming more affordable and easier to use in various formats. A map, report or interactive web application are some of the different ways everyday business analysts or owners are using demographic maps to increase sales!