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Customer Profiling: Frequently Asked Questions (FAQs)

Apr 26, 2019

What is Customer Profiling?

Customer profiling is the method of analyzing the characteristics of the ideal customer based on different attributes. Businesses use the tool of customer profiling to understand their potential customers and make better decisions. Customer profiling methods Revolve around grouping similar customer profiles based on their geography, demography, behavior and psychological characteristics. Customer profiling helps businesses to design customized campaigns for potential customers to improve their experience and boost loyalty. This also helps in enhancing marketing effectiveness and efficiency of a business. Psychological profiling of customers can help companies to identify the right prospects and offer them the required services to make them feel cared, engaged, and valued.

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Steps to Customer Profiling

Step #1. Understand your Products and Services

The most important step in creating an ideal customer profile is to have a proper and complete understanding of your own services, products, services, and organizational goals. It is essential for businesses to understand their customers and how they relate to the packaging and development of their products and services. The way your services and products are positioned to influence the type of consumers that use them and must be monitored accordingly. This also ensures that your services and products are of the highest value to your customers. This analysis also helps in understanding the change in the behavior of customers over a period of time. 

Step #2. Ask your Customers for Feedback

For accurate customer profiling, it is important to survey your audience regularly and get their feedback on your offerings. Also, the customer survey can help you assess their perception of your brand. Although it is very difficult to get your customers to take part in such surveys, it is not impossible to do so. Businesses can offer some incentives, for participation, to their customers in the form of discounts on their next purchase. Also, you should ensure the survey is enjoyable and not boring for the customers. 


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Step #3. Identify the Customer Based on Different Attributes

Customer profiling helps in finding targeted customers. For this, businesses need to identify their customers at a deeper level by digging into their behavioral interests, psychological response, demography, geography, and much more.  The more is the information available about your customers, the more accurate you can be at winning your customers despite the intense competition in the marketplace. Businesses need to leverage customer analytics solutions to understand and profile their customers efficiently.

Step #4. Keep your Customer Profiles up to date

Consistency is the key! Only gathering required information about customers is not just enough for businesses to gain an edge over the competitors, they need to keep the information up to date as well. The customer profile template that you feed in your database should be the same for all customers so that updating information becomes easy and error-free. To analyze areas like demographics, interests, behaviors and psychographics a customer profile template is considered ideal and necessary.

Why Customer Profiling is Important

  • Customer profiling helps companies to focus their marketing efforts efficiently by understanding the context of consumption patterns and similar product association. Also, it helps them to understand the expectations of customers that can further help in serving customers with better products and services.
  • Customer profile helps businesses to communicate with the right people at the right time. This helps them to drive the desired results from sales and campaign. Also, this insight helps in nurturing the potential prospects through the buying process. Customer profiling is considered to be very important for businesses looking to boost their response rates.
  • Customer profiling helps in personalizing communications with customers By creating a customer profile, companies can easily understand high-potential customers. This further helps in reaching them with customized campaigns and messages.
  • Customer profiling can also help businesses to improve customer acquisition. It can not only help them identify their potential customers but also offers insights into customer segments with similar characteristics. Such prospects will always have a higher propensity to show interest in your product or service offerings.

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Customer Profile Template 

#1. Broad Description of One of Your Ideal Buyers

  • Buyers’ persona
  • Demographic details
  • Web purchase behavior
  • Product preferences
  • Preference for communication

#2. Identify their End-Goal Wants & Needs

  • What are the offerings (services and products) that your clients really care about?

#3. Identify Where your Customer Frequents

  • What sites do they prefer?
  • What search terms do they use?

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