What is Customer Profiling?
Posted By: DSG
Customer profiling and the creation of personas is becoming more and more important, whether it is from an On-Demand Customer Experience perpective or from a Digital CX point-of-view, it impacts the way in which companies and brands communicate with their customer. Unfortunately, customer profiling is not always exercised in today’s market place since the process through which brands profile and identify target markets can impact both your bottom line as well as reshape everything you thought your business, products and services were made up of. After following a customer profiling process and identifying persona’s that make up your target market, what you initially set out to achieve by presenting your wares to the marketplace can be meaningfully repositioned.
The process of market profiling results in many entrepreneurs reshaping their product and service offering to focus on key customer markets as opposed to following a generalist approach. Through means of customisation and following effective customer profiling, many brands prune several branches of products to reveal a more fruitful strategy that maximises the impact on niche marketplaces.
Constructive customer profiling which is an outward function in fact begins with an introspective function of examining your current product set and the benefits and features that each offers. Defining your business; who you are, the products you sell and describing the problems that your products resolve for your customers, sets the tone that your customer profiling will communicate in.
Consumers like to feel unique and targeted. Their purchase decisions are persuaded by how well the product or service meets their needs and desires and compliments their goals and aspirations. By focusing on 4 Key elements that encompass a market profile, brands are able to avoid the common mistake of generalisation simply for the sake of having a larger customer base and focus sales efforts to answering the detailed needs of specific customer profiles.
Basic Steps to preparing a comprehensive customer profile include;
• Client demographics
• Geographic profiling
• Psychographics exploration
• Motivational enquiry
There are various other factors that can be researched when completing an in-depth customer profile, some of which may or may not be relevant to your enterprise. What is important to always focus on and keep foremost when preparing a market profile is; the more you know about your client base, who they are, what makes them do the things they do and what influences their decisions to buy, will define how effectively you position your business as a solution to their consumer conflicts.