Customer demographics refer to the statistical characteristics of a specific group of consumers. This information typically includes factors such as age, gender, income level, education, and marital status. Understanding these demographics helps businesses identify their target audience and tailor their products or services to meet the needs of different groups. By analyzing customer demographics, companies can make informed marketing decisions and improve customer engagement. For example, a clothing retailer may focus on young adults if their primary demographic is aged 18-24. This targeted approach can lead to more effective advertising strategies and increased sales.