Customer profiling is an important process when trying to understand your customer base. It can help identify potential growth areas, help define sales regions, changes in customer behaviour and help the marketeer in decision making.A profile gives key decision makers a picture of their customer base at a point in time. As customers requirements change so their profile changes - it is important to maintain and compare key indicators, so that your business doesn't get left behind. It is critical that a business understands the needs of their customer base, both current and future.The following list gives an idea of the options available:
Customer address details can be processed to give an overview of their geographical spread. It is possible to group by postal areas, sectors or standard UK marketing regions. This kind of profiling is extremely helpful in identifying customer hotspots, opportunities and helping key decisions when marketing, resource allocation or logistics planning.
By using additional demographic data (e.g. business sector, number of employees, CAMEO/Mosaic lifestyle data) it is possible to get an in depth picture of your customer base. This is helpful when analysing changes over time, identifying growth sectors and targetting new customers.
Transactional data is often seen as the domain of the finance department, but analysis of customer turnover, average transaction values and frequency of purchase can help identify your loyal customers and enable the marketeer to target those people who are most likely to be 'high value'. Lapsed customers can also be targetted in an attempt to reconnect with them - this may prevent them buying from your competitors.
Customer profiling can benefit your business by:
View sample lifestyle audit