Customer Profiling: The doorway of Potential Customer
As the years have gone by and attitudes toward finances have evolved, the words ‘bottom line’ have begun to take on a negative connotation, and when combined with the idea of customer profiling, you now have the recipe for a rather toxic perception regarding business practices this day and age.
For a business owner, this perception can be tough to reconcile because in order to have a successful business, it is imperative to keep your bottom line in mind when making business decisions, but you also want to customers to feel that financial gain isn’t your only aim. Customer profiling can ride the fine line between these two mindsets, but it is an important tool for business owners to use.
In the hopes that any negative light on customer profiling be cast away, here are seven reasons the best customer profiling will help your bottom line:
1. Better Products – Whether it’s a service or a good, your product is made with helping your customers in the best way possible – giving them exactly what they need. By studying the demographics & general habits of prospective customers, you get a better idea of how best to develop your product.
2. Marketing 101 – Every business wants to market to potential customers (i.e., marketing strategy & marketing plan), but in order to know who to market to, you have to define your customer.
3. Better Availability – Customer profiling entails understanding the process by which customers purchase a good or service. In other words, you have to know how they got to the purchase point, and this means getting better information about when the customer: 1) identified a problem; 2) began researching solutions; & 3) weighed the benefits of each prospective solution. If you can gain insight into this process, you know how best to market your company so that a customer finds you.
4. Customer Impact – Customers want to know they matter, and if they’ve chosen to fill out a survey or provide an online review, they are taking steps to share their opinion. Reaching out to current customers to gain insight about the product is a way to not only plan for prospective customers but also to retain current ones.
5. Focus – Businesses can waste a lot of time getting into the nuances of how to make a product evolve. A strategic customer profiling process allows for greater focus on whether a product is accomplishing its purpose first.
6. Defined Customer Touchpoints – Good customer profiling helps better define customer touchpoints, thereby giving important insight regarding how best to design these touchpoints to provide better customer interaction.
7. Experience Your Own Brand – One common consumer complaint is that businesses provide products fit for a customer that doesn’t exist. Whether it’s the materials used, options available, or general functionality, the perception is that a product or service is not made with the average person in mind. Customer profiling allows businesses the chance “walk in another person’s shoes” for a bit & see what may work best.
Customer profiling is an integral part of a successful business, and the information derived from this process better equips all business with important tools to maintain both lasting relationships with customers & a company’s bottom line.