Customer profiling breaks customers into groups of sharing similar goals and characteristics and each group is given a representative image, name, and persona description. You may have one hundred individual customers or companies, by grouping them into say five personas you are better able to make decision concerning your service offering and to organise resources around the delivery of your service based on the groups preferences.
Seven Key Benefits of Profiling Customers
Profiling has many advantages, you are able to:
- Group individual customer profiles into different market segments.
- Focus resources on specific groups.
- Distinguish why customers buy from you.
- Spot opportunities to sell each segment new products.
- Target each group with specific offers tailored to their needs.
- Find new similar customers groups.
- Sell to new segments with similar characteristics.
Five Simple Steps to Creating Your Customer Personas:
- Describe your existing customers:
- What products or services do they purchase from you?
- What industry are they in?
- Where are they located?
- How much time do they take in support?
- How do they purchase; volume, frequency, method?
- Locate where your customers hangs-out, what they read or search.
- Understand the needs, benefits and motivation that make your customer purchase your product or service.
- Interview your current ideal customers to gain additional insight into what made them select your business over other competitors.
- Create tangible profiles for each identifiable client group that describe each specific segment of your current customer, name each persona and include visual images of the ideal customer personas.
These five simple steps will give you a clear picture of the type of customers your business is serving and most importantly you can identify which of this segment benefit your business most and therefore should be targeting. Creating a strategy with these ideal customers in mind will help you avoid a waste in valuable resources and you will be able to better target your marketing efforts.
If you use the information you have learned to identify and learn more about your most valued customer. You can identify important information about key customers by collating and thoroughly analysing the numbers. Your highest revenue customers may not be in your 20% most valued, some customers may purchase large quantities of low-margin products or services, others may require a lot of costly support and therefore profit margins may be low on these high revenue customers.
Then look beyond the numbers for value. Your customer may be loyal to you, easy to work with, and see the value in your products or services. They may evangelise your brand through word of mouth or on social media, and while their revenue may not be in your top 20%, they are important advocates of your business that may attract more custom.
Creating ideal customer personas of your most valued customers enable you to look for similar patterns and themes in other prospective segments and target this opportunity.
Five Ways to Keep Your Customer Happy
Having identified your most valued customers it is important to keep your customers happy:
- Handle any customer or account issues promptly and thoroughly.
- Always be empathic, personable and human.
- Personally take the time to get your customers feedback.
- Always keeping the lines of communication open and fluid.
- Send personalised gift or messages if appropriate to let your valued customer know that you care.
Targeting by customer segment makes it easier to ensure that each customer gets the relevant marketing messages at the when they want it. You are better able to explain the relevant advantages of the product benefits that relates to their specific needs. Through focused and more consistent marketing communications, you will be able to better reach the new customers you need to take your business to the next level.
It is not enough to profile your customers into personas, you must segment these groups to identify your most valued customers and then target you resources to better serve your most valued customers wants and needs and keep you customer happy.