Knowing and understanding your customers is at the core of any marketing effort. In digital marketing, there are certain hurdles to knowing customers effectively. However, modern tools like session replay software have made things relatively easier. Nonetheless, it requires considerable effort to obtain data from and about customers.
The bigger question is not how you obtain data, but how you use that data. Customer profiling has emerged as the most effective way to use data about customers. Customer profiling is not a new concept. However, digital requirements have changed how we create customer profiles and how we use them.
Today we will go through the steps and processes of creating customer profiles. Before that, let’s briefly understand what a customer profile is.
What is a customer profile?
As the term suggests, a customer profile is a customer’s profile including their background information, pain points, demographics, etc. Customer profiles can be for individual buyers, groups of buyers, or a persona.
These profiles highlight what are the key problems that customer faces, what are their demands, and what solutions they prefer. Once you have data on these areas, improving your conversion rate and sales becomes much easier.
How to create a customer profile?
The first step towards creating a customer profile is to obtain data. There are many ways to get this data – website visitor tracking tools like WatchThemLive, surveys, live interactions, and so on. Once you have substantial data, you need to classify it under different headers. There are many types of customer profiles. While some focus on demographic information like age, sex, nationality, etc., others might focus on income levels, behavioral patterns, and so on.
There is no right or wrong approach here. Depending on your needs, you can classify customer information under any header. However, you must ensure that it solves a definite problem.
Demographic customer profile
Behavior analytics help you with demographic information about customers. Tools like Google Analytics help you understand the background of your customers – their age, sex, geographical location, and so on.
While creating a customer profile based on demographics, it needs to be a group profile. You can create a profile for your target customer. For example, it can highlight a few points like average age, sex, educational level, problem, expected solution.
For instance, suppose you run a clothing brand. After analyzing data about customers, you get substantial background information. Now it will help you create a customer profile where you input age – 18 to 24, sex – female, income level – middle to high class, and so on. You can also add more information like their average education level, their occupations, etc.
The most important component is the pain point that a given customer profile has. For our above example, it might be the unavailability of customized clothing at an affordable price. It might be something else as well, like high shipping charges or an underdeveloped retail market. Whatever the pain point is, understanding it will help you greatly in every aspect of your business.
How to use customer profiles to improve sales and conversion rate
We’ll take an example for illustrative purposes. Suppose your customer profile reveals that the leading pain point is the unavailability of high-end fashion at local stores. Using this information, you can make your eCommerce website more conducive for those looking for high-end fashion brands. You can use landing page optimization tools to make high-end fashion a key component of your landing page. You can create content around this subject on social media that will inspire potential buyers to check out your website.
Marketing without proper customer profiling is like shooting an arrow in the dark. You might end up spending your marketing budget pitching to an audience that has zero interest in the problem you are solving. For smart and efficient marketing, customer profiling is non-negotiable.
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