How Customer Demographic Profile Report works
ESRI Business Analyst uses the geographic information from your customer address information to append demographic characteristics and a Tapestry segmentation code to each customer record. The Customer Demographic Profile summarizes the demographic makeup of geographies where your customers live.
Calculations used in creating the Customer Demographic Profile
The calculation used in creating values for the Customer Demographic Profile is as follows:
Where DC equals a demographic characteristic on the report, such as population age 15–19.
Where DC(bg) equals the same demographic characteristic in a block group.
Where W(bg) equals the weight of the block group. The calculation for W(bg) is illustrated below.
The weight of the block group is the ratio of the number of customers in Block Group C(bg) to the total number of households in Block Group TOTHHs(bg).
The Customer Demographic Profile gives you a feel for the demographic makeup of the profiled file. Business Analyst assigns a weight to each block group that contains a customer record, aggregates the values, and calculates the results shown in the Customer Demographic Profile Report.
Below is an example.
A customer file has 10 records; 5 reside in Block Group 1, and 5 reside in Block Group 2.
Block Group 1 has a total of 10 households.
Block Group 2 has a total of 25 households.
For the above equation, W(bg) = .5 for Block Group 1 (5/10 = 0.5) and .2 for Block Group 2 (5/25 = .2).
Below is a household income distribution for each of these block groups.
Apply the ratio calculated previously to each count in each interval for each block group and aggregate them for each variable.
Values are rounded to one decimal point.