There are many factors involved in managing a business. And the customer is one aspect that cannot be ignored. Every business knows that customers are the heart and soul of the industry. Therefore, improving their experience is the prime concern for businesses and understanding them is very crucial. A customer profile allows a business to know who the customers are, what they do, and where they do it. As a result, businesses get to define its audience and engage with them in a better way. Now, let’s look at the knowledge of customer profiles and the benefits it brings to your business
1. What is customer profile?
A customer profile is a description of a customer or set of customers that includes demographic, geographic and psychographic characteristics, buying patterns, creditworthiness, and purchase history.
Customer profile gives you benefits by providing user demographic data as well as insights on customer behaviors. Therefore, your business can further target your inbound marketing efforts. Besides, creating profiles also benefits the customers by allowing them to store information like addresses and credit card numbers for future checkout in order to save time during future purchases.
>>> Read more: Customer feedback: Why is it important in the business?
2. Elements of a customer profile
Let’s look at the essential information you need to include in the customer profile
Demographics: It describes the name, age, gender, race/ethnicity of the customer
Socio-economics: This contains your customer’s highest level of education, current occupation, income range per month, and household structure. The household description should consist of the family makeup, and marital status: single, married, etc.
Geographic: The geographic location should include the customer’s hometown, their current residential location
Psychographic: When the demographics are clear, identify the psychographics. That is your customer’s behavior and beliefs. They include their personality, hobbies, interests, lifestyle, and values. Besides, this can contain their worries, fears, hopes, and dream which helps you understand how your business can assist with that.
Behavioral: Define what influences your customer’s purchase decisions in terms of their product choice, price factor or promotions. Whether the influence is external or internal, what motivates them to make a purchase, and why.
RFM:
Recency: How recently has your customer made a purchase
Frequency: How often has your customer made the purchase
Monetary value: How much money does your customer spend on the purchase
3. Benefits of customer profile for eCommerce business
Tailor relevant audience
This is one of the most significant benefits of a customer profile. It provides your business the ability to tailor communication-based on the specific interest of the customers. As a result, this will enhance engagement, and experience and boost sales.
Enhance response rates
A customer profile helps your business communicate with the right people at the right time. This promotes the campaign and sales to get better results. In addition, this insight will start a nurturing process to lead the potential customers through the purchase process. These are multi-layered benefits of customer profiles when it comes to boosting response rates.
Better customer acquisition
A customer profile helps you understand your best customer. Then, you can look for prospects with the same characteristics. And these prospects can turn out to be potential customers. Such customers will always have a higher tendency to be interested in your products and service. This is one of the most remarkable benefits of a customer profile.
Improve market penetration
A customer profile template is analyzed which gives your business a lot of potential opportunities. This can make you understand that what is the percentage of the target market and what is the market penetration level of your business. That is one of the most important benefits of a customer profile. As a result, it opens up the door for future growth and stability.
4. How to create a customer profile
Focus on your long-term goals
What is the biggest focus of your company this year? Is it the detailed number of sales of a certain product? More sign-ups on your website? Increase social media followers? A customer profile can help you achieve all of those
When you have identified your goals, you can focus on how the customer works into them. Your goals and your target customers should coordinate perfectly.
Highlight what makes you unique
Many other businesses also target your ideal customers. That’s why you should focus on what makes your brand or product unique is important. Therefore, you have to think about the last product you bought. Firstly, you should pinpoint the differences to convince potential customers that your business can solve their problems better than other competitors.
Build your buyer persona
When you have determined long-term goals and what makes your product unique, it’s time to put that into perspective with your ideal customers. Your buyer persona should outline a few high-level things about a potential customer. In turn, they will help you build your profile customer. These are two separate things that work together to create the perfect strategy for attracting new customers.
5. How to use a customer profile
PR campaign
A customer profile can help your business decide which PR campaign to perform. In addition, it gives you overall brand awareness and brings new customers into the sales pipeline that you might have otherwise missed.
Marketing plans
A customer profile can also guide your marketing plan. You will know which promotions your customers are most interested in. They are events, giveaways, new products, demos, or discounts. Besides, you will know what images, fonts, colors, jokes, and references will catch their attention
Remember, it’s not very difficult to create an ideal customer profile. However, it’s crucial to maintain and change it from time to cater to you as per the situation and market demands. Please contact magesolution.com to get more information.
