Successful selling comes when you have fully understood your customers. And the deeper you know them, the easier it will be to increase their spending.
If you want to create a successful menu, product list, marketing campaigns and offers on your products and services, you need to create customer profiles. This will be a powerful and very effective tool in your hands, as it will give you the opportunity to focus on specific groups with the most suitable approach in order to achieve the best outcomes for your business.
5 steps for creating customer profiles
1. Have deep knowledge of your services and products
This is the first and most important step of the process. You need to fully understand the details and special characteristics of all your products and services.
This will enable to specify who you want you for your customer and how the details and special characteristics of all your products and services relate to them.
What you offer in your business specifies the type of people that are going to use them. In order to ensure that your customers are getting the highest value of your products and services, you need to monitor the way and volume of their use by them. This will also show you if you are creating the best possible experience for your customers.
When you monitor closely the use of your products and services, you will also be able to identify the changes in the customers’ choices and take the necessary action on time, to respond in the most efficient way for your business benefit.
2. Use the customers’ feedback
This will help you understand their perception of your business as a whole but it will specific tell you how they respond and feel to your offering.
The best way to go forward is to create small and quick surveys with questions regarding themselves, their product preferences, most suitable services to them and market habits.
Because it might be difficult to make them take part in them, it’s wise and highly effective to offer them incentives if they participate.
This might be a product discount, a coupon or a free item of small value. Don’t feel that this is a waste of money as the gain from the knowledge you will receive is of the highest value for the future of your business.
3. Monitor the customers’ behaviour
When you start creating a specific customer profile, you need to describe their behaviour based on the way and volume of using your products and services.
What you need to consider is how customer service, price, convenience and promotions will motivate them into buying your products.
Another important think is how driven they are from their loyalty to your business as well. In order to finalise the profile, take into account the customers’ attitude, based on the way they think and feel about your services and products.
A good example can be the following: the desire they have for high quality products being stronger than for lower prices. This is is a great indicator to whether you need to focus on your offering for this specific group.
4. Use the Demographics Data for your area
Demographics data is such an essential tool to use for setting your business offering.
What you need to take into account are criteria like gender, age, race, income, religion, marital status, occupation and educational background.
For example, being close to a university area at the city centre is a completely different situation compared to being in a wealthy suburb based on local population at the outskirts of your city.
Your offering cannot be the same in these two cases if you want to reflect your customers’ needs, wants and expectation, as we are talking about two completely different customer bases.
5. Daily Data will clarify things
All the data you collect from your daily operations needs to be used as well to complete your customer profiling.
This data includes Spend Per Head or Average Ticket Value, products sales mix, your sales and your KPIs (Key Performance Indicators) for different periods of time (daily, weekly, monthly, quarterly, yearly and Year on Year).
This will give you a deeper, more statistical, objective and detailed picture of each customer profile you have created and will save you from unnecessary assumptions and projections based just on your feelings and emotions.
Things you need to ask to create a customer profile
- What type of person can be my typical customer?
- Where are they geographically located?
- What is their age range?
- What might be their personal interests?
- What is their job or occupation?
- What do they like and dislike?
- What do the customers consider in oder to decide to use my products and services?
- How my products are more suitable compared to those from my competitors?
- How are my customers informed about the services and products I sell?
- Is the cost of my products at the right level for the customers to make the decision to buy them?
- What do the customers like and enjoy form my products and services?
- What was the previous customers opinion for my company?
- What ways do I have available to contact my current and future customers?
Benefits from creating Customer Profiles
It’s easier to understand why customers are using your business
When you have created the customer profiles, you will be able to understand the reasons your customers are using specific products and services you already offer, but you will also identify quickly and on a very early stage, all the right opportunities to sell them new products and services.
You can focus your offers and marketing activities on specific groups
Rather than having a flat approach in your offers and marketing activities, which will have mediocre to low level results for your business, the customer profiles will direct you to be more specific and to the point when you promote and use marketing methods for your business.
This means that you can push the right products and services to the customers who are more likely to use them.
This will raise customer satisfaction and the opportunities to upsell will increase drastically.
You will also have the right information to produced customised products for key-customers which will not only boost your sales, but also their loyalty to your brand.
It’s easier to find new customers
When you have created the customer profiles, you have the power in your hands when it comes to finding new customers.
All you need to do is to identify the customers with similar profiles to the ones you hold.
Then use your information and data to sell them your products and services in the same ways you have used with your existing customers with the same profile.
This is a secure approach as you go straight to the point with them, by offering the things they are looking for without wasting their time and frustrate them by trying to sell something irrelevant to them. This leads to superior customer service and definitely more loyal customers.
You will achieve repeat business
It’s a fact that it’s much more expensive and difficult for a business to find new customers compared to relying on the existing ones. You will have a successful and profitable business, when you manage to persuade your customers to buy from you on repeat, again and again and again…
Most of the businesses out there make a huge mistake by focusing on getting new customers and forget about their current ones.
What you really need to be aiming for is not really the first time that a customer will use your products and services but the second.
This means that they are satisfied from their first experience and they returned. They have created repeat business for you which should be your ultimate target.
Why? Because it’s 5 to 10 times more expensive to get a new customer compared to keeping an existing one.
Your competitors will find it hard to steal your customers
The closer and stronger the relationship you have with your customers, the harder it is for your competitors to gain their trust and custom.
Loyal customers are difficult to be turned to new habits and desires as they feel more than happy and satisfied with not just your products and services, but the overall experience you offer them.
And this is because it is tailored to them based on the customer profiles you have already created and used to get to this outstanding outcome for you and your business.
Make sure you complete customer profiles, at least to a basic level for your business. It is on of the most essential actions you need to take, if you are aiming for long time success and are serious about your products and services.