Customer Profiling Process
Posted By: DSG
Understanding who your customer is, what inspires their purchase decisions and key factors that prompt how they interact with your brand, products and services is a fundamental aspect to defining a dependable product strategy that maximises its impact on niche marketplaces. Successful market profiling exposes the tone, language and influences your business, brand and products should aim for when connecting with customers and converting prospecting purchases into committed long term client relationships. Niche customer profiles will support effective product, marketing and communication strategies, perfect sales objectives and set clear business intent.
Although further influenced by the age of digital consumerism, it is an innate desire, intrinsic to the human consumer psyche to feel unique. The power that a perception of exclusivity has on influencing a purchase decision can outweigh conventional influences such as price, availability, convenience and even quality. The only way to achieve this is through sound market profiling.
To pinpoint targeted customer groups, brands need to define these individuals by 4 key focus areas namely; Client Demographics, Geographic’s, Psychographics and Motivational factors.
- Client demographics detail customer groups by age, education, occupation, income, marital status and family status. Customer demographics are important to study as these help to identify current and future market potential and identify their changing needs and how a brand can prepare for, adjust to and evolve with market alterations.
- The Geographic details of your customer, where they reside and work, environmental characteristics (urban / rural) of their location and climate will significantly impact how best to identify and reach current and potential customers.
- Client Psychographic information includes lifestyle choices, personality types, behavioral components, hobbies, interests, problems and desires. By knowing as much as possible about the “softer side” of your customer, will also assist in filtering a widespread customer base into a more definite focus group.
- Motivational factors describe the dreams, aspirations and ambitions of your customers and how your product or service can support them in achieving these goals. Motivational factors also include the comprehension of customers’ needs and desires and what compels them to buy the products they buy. How much does pricing influence their motive to purchase versus the brand, quality convenience and availability.
With an astute understanding of who your customer is, where they are located, what makes them come to the decisions that they do and the degree to which they may or may not influence change in your current market, customer profiles can help to refine product offers to best meet client needs, find them where they prefer to engage and speak convincingly about how your products will service their needs and desires.