What is geodemographic segmentation?

people shopping in high street

Geodemographic segmentation, such as Acorn, is consumer segmentation that groups individuals according to demographic variables such as age and income and identifies them via geographic variables such as postcode. These variables help supply granular insight into consumers to bolster connections, pinpoint optimal store locations that will ensure business growth and enable the successful planning of short- and long-term strategies. 

So, what are the benefits of geodemographic segmentation? Which industries can geodemographic segmentation bolster the capabilities of, and what geodemographic segmentation tools are available for you to leverage? 

Benefits of geodemographic segmentation

  • Precisely locate and target consumers that align with your product or service: Geodemographic segmentation enables businesses to target customers that align with their product or service by understanding a variety of their unique traits and behaviours. This understanding can be used to tailor messaging, product and service offerings and location strategies to provide a customer experience that appeals to the needs of these target customers within specific catchment areas. 
  • Enhance your store network: Select the correct fascia and format for your store or branch to match the profile of the catchment. 
  • Optimise your store locations: By understanding the local demographics surrounding each of your existing locations as well as their wants and needs, you can optimise your estate network and decision-making when open. 
  • Maximise ROI: By targeting specific consumer groups through tailored messaging and marketing campaigns, businesses can generate profit much faster while simultaneously cutting costs and making the most of the available budget. 
  • Optimise communication methods: By harnessing the power of data-backed insights into consumers, geodemographic segmentation helps guide the narrative for business messaging to ensure engagement is high from the outset and customers are targeted effectively. 

Examples of geodemographic segmentation in use

Geodemographic segmentation can be applied to a range of industries to enhance their customer insights and successfully plan for the future, including:

Retail & Leisure

Geodemographic segmentation can be leveraged by retailers and leisure operators to gain a granular understanding of the catchment surrounding a particular store or branch and gain visibility into location performance and range planning. 


Workable and balanced sales territories can be strategically planned for by FMCG retailers through geodemographic segmentation by understanding the likelihood of demand for products within specific territories.


Relevant consumers can be targeted through tailored messaging that promotes the reduction of water or energy consumption, for example, through understanding typical traits and usage.


Geodemographic segmentation helps drive a personalised media experience and targeted content from enhancing digital advertising programmes to growing subscriber bases.


Insights into supporters and their interests, channel preferences and digital behaviours can be analysed through geodemographic segmentation. This insight enables charities to revitalise their communication methods to acquire new supporters and retain their existing supporter base. It can also be used to inform location planning by gauging the performance of shops.

Public sector

Geodemographic segmentation ensures you meet the needs of all local residents through an innate understanding of who they are and what they need. It can make a tremendous difference when launching a new environmental initiative, assessing local services or evaluating communications strategies.

How Acorn can help you with geodemographic segmentation

Acorn is CACI’s geodemographic segmentation that supplies innate insight into the demographics, lifestyles and behaviours of UK consumers in an easily digestible way. As the first agency to be granted permission to use Census data and the UK’s leading consumer and market data analysis company with over 40 years’ experience in building robust classification systems, CACI is known for turning extensive data into actionable insights.

If you’re interested in learning more about what Acorn can do for you and your business, contact us today.