Customer Profiling: Understanding Your Target Audience

Posted on May 16, 2023 at 10:05 PM

Understanding your targeted audience through powerful and effective customer profiling is all you need to design a detailed marketing strategy for your business.

As a business, customer profiling is created to help you tailor your processes and decisions on all levels with real-life data and precise segmentation of your specific consumers' behaviours.

Today, we will identify customer profiling and share the ideal steps to create your customer profiles. Moreover, help you to discover the benefits of customer profiling and its key used elements and strategies.

Customer Profiling Definition:

Customer profiling is a process of gathering, providing, and analysing data about your customers based on characteristics segmentation. To differentiate between your current customers better based on their profiles and your current market needs. Then implement the best messaging practice based on the identifying term.

More than that, sales management training says that customer profiling should be a part of companies' or brands' marketing and communication strategy to learn how to reach and interact with customers.

Customer profiling is the process that works based on your customers' geographic, demographic, location, language, age, gender, and any other unique segment that interacts with your products and customers' services.

On the other hand, you are wondering about the differences between customer profiling and buyer persona. So, let us tell you that customer profiling is based on data and patterns about your customers.

Meanwhile, the buyer persona works based on the ideal imaginary client profile, who would buy and interact with your products or services.

Steps to Create a Powerful Consumer Profile:

If you plan to implement better customer retention strategies, then you must follow these critical steps to build your company's ideal customer profiling:

• Collect customers’ feedback through online and traditional surveys.
• Define and analyse data based on your business's customer segments.
• Use the right customer profiling software to analyse your data with the latest cloud technologies effectively.
• Understand your market based on your consumer profile details and preferences.
• Review your marketing funnel to research your buyer personas and leads.
• Build your customer profiling.
• Monitor and develop based on your market factors.

After these steps, you will create a perfect customer profiling to boost your marketing strategy based on cited and accurate data to improve your success and revenue.

Essential Benefits of Customer Profiling:

Before sharing with you the strategies to create your customer profiling, we are going to share with you the benefits of having a comprehensive customers profile:

• Improve Customer Experience:

To follow your customer service best practices, you must work based on primary data, which is what a well-done customer profiling offers businesses. Thus, your work will be built on your customers' profiles, improving user service and boosting customer satisfaction by default.

• Better Marketing Strategy:

It is a known fact that building your marketing strategy based on your customer profiling and market insights will be a more efficient technique.

Whether working based on a traditional or digital marketing strategy, your understanding is crucial to boost your marketing and business results.

• Lower Customer Acquisition Cost (CAC):

Simply, when you know your potential customers' prospects, you will learn how to attract them with actual marketing campaigns and efforts that convince them to purchase your products.

Thus, your overall customer acquisition cost will be lower because you can run a more efficient acquisition process.

• Increase Sales and Revenue:

Think of this from this point of view, when you know someone, you would have a better definition of his/her valuable goals and then target him/her and convince him/her to buy more.

And that is what the customer profiling model offers you based on real-time customer data to keep your information updated.

3 Strategies of Customer Profiling:

Despite what types of customer service you have, all of your customer profiling work is done by one of these strategies:

1- Psychological Strategy:

This strategy solution works based on your customer profile's lifestyle and how, when, and why they decide to buy.

This helps you interact with your customers based on their interests, likes, and dislikes.

2- Consumer Typology Method:

In this customer profiling type, you would categorise your customers based on their buying decision type into loyal, discount, impulse and need-based customers and build your customer profiles and marketing strategy based on these insights.

3- Consumer Characteristics Strategy:

If you want to build your customer profiling strategy based on your customers' decision source, this is the best type for you.

This strategy divides customers with these characteristics: convenience-driven, connectivity-driven, and personalisation-driven.

Last but not least,

Customer profiling will boost brand awareness, engagement, sales, and revenue. Thus, focus on your customer profiling building and constantly train your sales team to empower your practices.