Most companies have a picture of who their customer is. You may not know for sure, but you guess it’s in a certain way. The profile is based on deep knowledge about your own operations, dressed with a vague picture of who’s in the customer base according to the transaction history. Images of the customer is too easily created from gut feelings and assumptions in addition to the information actually provided. Harmful when you have too little information is to pull everyone together, to assume that all behave the same and are the same. But just as dangerous for the budget, objectives and brand is to differentiate with too little meat on the bones.
Profiling not only means that you get a good understanding and insight about your customer base. With the right data – and the link between different data sources – you get a full understanding of the market and how to act on it, keeping the message relevant and thus achieveing a higher ROMI (Return on Marketing Investment). By creating a complete picture of the behavior, attitudes and motivations of customers, prospects and the market you can meet and even exceed your customers expectations. By combining the specialized knowledge you have about your own business and brand with the understanding of target groups, you can make sure that “What we want to say” and “What they want to hear” match, thus creating relevant messages.
The more information that can be added to the customer base, the sharper the insights. The internal transaction history can answer how customers behave when shopping with us, but lack the lifestyle and market perspective. By connecting the internal data to external data and survey data you get a clearer picture of what the customer is doing when not dealing with you, but also an understanding of the market and competitive situation. A profile allows you not only to get a full understanding of who your customers are and where they are on the market, but also the motivations, behaviors and attitudes that influence their purchasing decisions.
Correct application of the profiling facilitates choice of communication and channel selection, ranging from traditional media to digital channels (please contact us for more information about our digital initiative). The link to the market via external data allows a profiling to no longer be a shelf product but for it to be used operationally – you can create relevant communication to the right person. Our view of a successful profiling is that you can apply it to existing customers and also take it to the market to create relevance. A good customer profiling helps every step of the way – from understanding and strategising to making tactical decisions and implementations. The assumptions previously formed from the transaction history become more graspable and actionable. Having a clear objective before making the profile is important. It creates the right conditions for a successful profile and it facilitates both the analysis and the application phase. By knowing what the customer base actually looks like and where you should focus, your target groups are identified and can receive relevant communications in the right channels.
- Frida Boman & Mats Wiberger / InsightOne