Research Topics:

Census Data | Data Analysis | Quantitative Research

Content Type:

Glossary

Centroid Definition

Geographic points marking the approximate centers of populations of the block groups and enumeration districts in the U.S.

A centroid is the central point or average location – in other words, the center of mass –  within a cluster of data points. For instance, centroids mark the approximate population centers of block groups and enumeration districts. An enumeration district is an area that could be covered by a single census taker in one census period. A centroid is established by calculating the mean of the attributes or variables of the data points within a cluster. Analysis of centroids can uncover hidden patterns in consumer behavior and preferences. What’s more, it helps segment customers into meaningful groups, guide product development and optimize marketing strategies.

Who relies on centroids?

Marketing analysts and researchers study centroids to understand customer segments and groups within a larger dataset. Businesses can learn about consumer characteristics and preferences by identifying centroids. Findings are useful in targeted marketing strategies.

Why should I care about centroids?

Through research into centroids and identification of customer segments and central preferences, marketing professionals can create customized marketing campaigns that resonate with each targeted group.