In order to make your sales and marketing more effective, the very FIRST STEP IS TO UNDERSTAND YOUR CUSTOMER.
And how do you that? With Effective Customer Profiling!!!
WHAT IS CUSTOMER PROFILING?
A customer profile, or a consumer profile, is a detailed description of your current customers.
A customer profile covers the following:
- Demographic Data
- Purchasing Behaviours
- Pain Points
- Psychographic Data
CUSTOMER PROFILING –GIVING DIRECTION TO YOUR SALES & MARKETING EFF0RTS
Customer profiling lays the foundation for your sales & marketing efforts. Without customer profiling, you may end up executing your sales & marketing campaigns to the wrong audience who does not need your product or has the buying intent.
Keep in mind, customer profiles are created for your customers. Thus, these are tried, tested and highly reliable, unlike any imaginary attributes that you would like your customers to have. This will give you a better idea of who is more likely to buy your product.
WHY IS CUSTOMER PROFILING IMPORTANT?
Customer Profiling helps in:
- Designing a Better Product/Service
- Giving Right Direction to Sales &Marketing
HOW CUSTOMER PROFILING HELPS IN DESIGNING A BETTER PRODUCT?
To design a great product, you have to first understand what are the pain points of your customers.
How can you do that? You can always survey your current customers, understand what problems they are facing and design a product that solves these products accordingly. It is likely that your current product does not address the issues your customers are facing. Besides. You can also improve your product using this data. You can even add a new feature to your existing product.
HOW CUSTOMER PROFILING GIVES DIRECTION TO SALES & MARKETING?
When it comes to defining your marketing strategies and giving directions to your sales team, it is essential to have a description of current customers. Understanding who has bought from you. Will make it easier to understand WHO WILL BUY FROM YOU IN THE FUTURE.
Customer profiling helps you define the ONE CUSTOMER who will in fact buy your product rather than randomly targeting g anyone and everyone. Rather than targeting an ocean of customers, it is always wiser to target a small pool of customers who are more likely to buy your product. This ensures better utilisation of your time and resources.
HOW CUSTOMER PROFILING REDUCE CUSTOMER ACQUISITION COTS?
Customer profiling gives a clear idea about who is your buyer and based on that data, who will more likely be a buyer. When you focus your marketing campaigns on these prospects, the marketing budget is utilised better and the customer accusation cost goes down.
HOW CUSTOMER PROFILING HELPS IN REDUCING CUSTOMER CHURN?
Customer churn is the loss of customers over time. Since customer profiling helps in designing a better product or service and helps in maintaining excellent relationships with current customers, customer retention becomes very high customer churn rate reduces drastically.
TYPES OF CUSTOMER PROFILING
Customer Profiling helps in improving your product/service/solution, finding prospects with a higher likelihood of buying your product, building a better relationship with your current customers and achieving higher revenue.
Customers can be divided into different ‘SEGMENTS’ based on certain similar characters. Following are their four types:
Let us understand these segments in detail.
In B2B Marketing, demographics include the following characters:
- Job Title
- Company size
Geographic factors play a very important role in a customer’s interaction and behaviour with a product. Geographic segments are divided based on :
Psychographic segmentation includes the following characteristics:
These characteristics mainly help in understanding the psychology of the customer and his buying journey. It can also help in understanding the consumer’s journey once he has bought your product.
Behavioural segmentation is carried out based on the customer’s actions and behaviour. The following characters are considered when it comes to behavioural; segmentation:
- Readiness to Buy
- Buying History
- Product Usage
WHAT ARE THE ADVANTAGES OF DOIG CUSTOMER PROFILING?
- Better Quality Product/Service
- Highly Targeted Marketing
- Better Utilisation of Marketing Budget
- Reduces Customer Acquisition Cost
- Better Direction to Sales Team
- Effective Utilisation of Resources
So, it is clear that Customer profiling has so many advantages and it is essential to do customer profiling so that your sales and marketing always move in the right direction to yield the best results.