Marketing

Customer Profiling is important for your business growth – Know Your Customer

Customer Profiling is an important marketing tool you must use to understand your customers and make better business decisions. Assume you are taking a flight to a particular destination. That destination is your target audience. Without knowing where your target audience are based your business might not see the growth it should be witnessing. Your company needs a common goal and the right direction and for that knowing the type of customer you should be targeting to sell your product or service is very important.

In a nutshell without profiling your customers you are also selling your product or services to customers who are not in need. You are thereby wasting time.


Why you must profile your customers?

By profiling your customers you will have an understanding of your customers likes and dislikes. You will know the personality of your customer. You will recognise your customer’s characteristics, behaviour, and traits. In a nutshell profiling helps you communicate better with your customers enabling you to contact an ideal customer profile.

Profiling serves as a guide and helps the sales and marketing team make better decisions

The sales and marketing department becomes wiser and learns to identify the right prospect instead of pursuing uninteresting clients. The lead generation patter of your representative is more correct and the marketing department is more focussed on promoting your product or service to the right audience.There are six methods that can help you identify the target customer profile.

Three ways to profile consumer styles:

The three prominent methods to profiling customers are:

  1. The psychographic approach
  2. The consumer typology approach
  3. The consumer characteristics approach

Customer profiling steps to identify Target Customer profile

  • Group customer based on their revenue : Small / Medium/Large
  • Identify the revenue stream: Once you have grouped the customers based on their revenue it is important to identify the revenue stream.
  • Once you have identified the revenue stream you should check for the customer that can use your service or product. According to Pareto’s rule 20% of the right customer will make for 80% of your turnover
  • Upon identifying the 15, 30 or 50 potential customers that suit your business portfolio you further need to analyze your customer on their behaviour, pattern,
  • The final step is to identify out of the potential customers who will actually buy your product or service.
  • On completing the above five steps you will finally be able to create your target customer profile and you will be more efficient in SalesMarketing Customer Success, Customer SupportProduct Development You can follow the same steps to narrow down on customers you don’t want to focus on or sell to.
Target Customer Profile 
  
Industry Type ( Automobile, Agriculture, FMCG, Retail)Retail
Customer Type B2B or B2CB2B
Number of Employee 100 to 1000
CountryAustralia
Annual Turnover4 to 5 million dollars
Market positioning ( existing player, leader, start up)Competes among the top 10 or 20 of their market
Growth rate ( high, low, recession, super high growth)High growth 20% to 50% year on year
RoleIn charge of the marketing division
DesignationRegional Marketing Manager
Position in Hierarchy Next to CEO
GenderMale
Age45yrs
EducationMBA
Traits (introvert, extrovert,Extrovert
Behaviour(goal oriented, risk taker)Risk taker
Drivers ( efficiency, performance, relationship)Performance & relationship building

Three parts of the Segmentation

If you have followed the customer profiling steps to identify the target customer profile you will be able to segment your customers in three parts. Segmentation of customers is also an equally important part of customer profiling.

Perfect fit: This is the segment you should focus on. This is where you will generate your revenue from.

Neutrals: You can invest some time on this segment of customers. But not all your time!  This segment is a mixed bag that may or may not consider your service or product.

Not to be considered:  You have nothing to lose with this segment of customers.If your product interests them consider it a brownie point else you have nothing to worry about. You must not invest your time on this segment.

Customer profiling is based on several identifiers such as Demographics, Preferred Social Media Channels, Credit Background so on and so forth. Metriken Integrated Business helps businesses with customer profiling to target the right kind of products or services. Communication in this regard is crucial and emphasis is laid on succinct information shared with target audience to understand their behaviour and invariably offer them an attractive product or service that is mean for them.

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