Why Customer Profiling Could be the Best Investment your Company Makes
What is Customer Profiling?
You have a business, and chances are, your business offers various products and/or services that cater to different kinds of customers. Now, it’s convenient to just use the blanket marketing plan, the one-size-fits-all approach, where all marketing efforts are directed to the general target market. But convenient and efficient are two different things, and among the two, it’s the latter that gets you the ROI. So what do you do?
Here’s the thing: Business is like a game.
Let’s say it’s a basketball game. Your goal is to win as many games as possible, maybe become the champion. In order to do so, you prepare for your opponent – in this case, your market. But you don’t have just one opponent all season long – there are plenty of them, each bringing to the court a different kind of style, the same way that the market is made up of different kinds of customers, each with different attitudes. So what you do is classify your opponents according to some criteria and prepare a different set of plays for each kind of opponent in order to defeat them.
That’s customer profiling. It’s creating a specific portrait of your customers so you can craft a marketing strategy that best attracts them.
Why is it a Good Investment?
Again, it’s all about knowing the “enemy”, and your “enemy” here, the one you’re trying to win over, is the market. How can you fight and win if you don’t know who you are fighting, right? When you do this, you can prepare before the “game”, which is of course, better than adjusting on the fly.
Customer profiling is not just crucial to business — it may sometimes even make or break a business. Here are the benefits of customer profiling:
- Better Defines Customer Base – once you know your customer base, it is easier for you team to come up with the right approach to attract them
- Grows Revenue from a Segment – on a micro level, you can focus your marketing efforts on a specific segment of your market
- Provides Structure to a Marketing Plan – your team would understand what the ideal customer is looking for, what matters to them most and how best to speak to them
- Helps You Discover (other) Market Potential – an accurate profile of your customers allows you to see other market opportunities
- Improves Targeted Marketing – customer profiling allows you to direct your marketing efforts to those who are most likely to purchase your products