Customer 360 – Part 2 Customer Profiling

Customer Profiling is the way to target your ideal customer!

February 24, 2022

Customer Profiling is the process of identifying, segmenting, and defining your target audience. A customer profile is also referred to as personas and is specific customer types created from an understanding of your company’s general target audience and they represent the typical users of your product/service.

Due to the current market being immensely competitive in almost every area of business, competing for the acquisition of new customers, market share and customer retention is an important factor in determining the approach to prospecting for new customers.  This can also help with increasing customer loyalty and including customized product/service offerings to appropriate consumer groups.

So how can you identify the right customers and be able to offer products/services that customers can understand and perceive value, and feel engaged with? The answer is creating effective Customer Profiling.​

Customer Profiling Benefits

  • Identify and segment your existing and potential customers.

  • Increase the quality of the customer experience from the product/service,

  • Increase the efficiency of the customer retention process and build loyalty.

  • Increase engagement and response from customers and potential customers.

  • Driving and expanding markets using data. (Data-Driven)

Customer Profiling Process

  1. Search and gather information about customers or potential customers. This process can use information obtained from various sources such as information from customer relationship systems (CRM), transactions, data from surveys, questionnaires, or data from social media such as Facebook and forums for use in further analysis.
  2. Analyze, classify, and group customers into various dimensions, by looking for relevance or differences to categorize them according to the characteristics that influence the use of your products/services.
  3. Confirm the effectiveness of the segmentation by experimenting with different offers and analyze the results and adjust if necessary.
  4. Create a Customer Profiling template to define the customer profile criteria that can be defined in one or more than one group so that we can identify groups of customers to find the right service offering and communication method. The method of defining the characteristics of the prospective customers can be divided into a variety of ways, for example:
    1. Demographics - a concrete characteristic of a customer and can be used to understand consumer behavior such as gender, age, occupation, income, education, etc.

      Note: In the case of a B2B business group, they can do Customer Profiling on the company's key characteristics. (Firmographic) such as business type, organizational structure and size, departments and sections of key contacts, revenue, etc.

    2. Geographic - when location factors can influence how customers interact or decide to use our products/services, such as climate, city, country or geological environment.

    3. Psychographics - are important factors that can be analyzed to rationalize purchasing decisions in response to reasons, emotions, attitudes, and interests such as lifestyles, interests, goals and values, problems, and gains.

    4. Behavioral - one of the most easily identifiable factors in the information generated by interactions and activities that occur between our organization and customers such as records of sales details of a sales department, purchase history, problems encountered in the use of products/services, complaints, satisfaction surveys, repeat purchase information and loyalty program

      Note: Customer Profiling templates are flexible and can be used according to business needs. Some organizations can use up to four trait criterion formats to define one group of customer profiling, or a new trait criterion type can be defined to align with the business model and the customers we serve.

  5. Keeping Customer Profiling up to date to make it consistent with actual customer data and effective when used. This can be done by repeating activities 1-4 at appropriate intervals according to the type of business.

Lastly, for the customer profiling process can be carried out effectively, an organization must have appropriate data collection and analysis processes to ensure reliable results and lead to the goals the organization has targeted. This may start from considering the existing customer relationship management system to be consistent and sufficient. Including the creation of analytical processes with the right tools for making a high-quality customer profiling process.

Customer profiling is part of the fundamental Customer 360 process by leveraging data to understand customers from all angles. If any organization is interested or would like advice on how to get started or want to know the right technology, you can contact BizOne by filling out the information below.

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