Customer profiling is a behavioral relationship marketing technique which involves a variety of marketing strategies ranging from simplistic to complex. Customer profiling begins with the identification of data associated with satisfied existing customers and then uses that data as a basis to target new prospects with similar profiles. The profiles of customers can be categorized in multiple ways according to influential variables present in their profile.
Profiling consists of determining the characteristics and demographics of customers. Identifying demographic profiles of current customers may help your business strategize ways to attract new customers and generate higher revenue through targeted marketing strategies. To gather demographic information from existing customers, your business should track sales data and other customer related information to help determine the ideal customer for your business.
Customers have unique preferences and needs and segmenting allows for managing customers based on their individual or grouped characteristics. Invalid segmenting could produce dissatisfied customers. Customer profiling should be the basis of your segmenting strategy and has proved to be the most useful strategy in customer acquisition.
Cultural Uniformity. Although it is rarely discussed in smaller businesses, analyzing the cultural differences between your customers can help in developing targeted marketing strategies. Cultural differences naturally exist and can greatly influence your marketing. Cultural differences may include customer locations, beliefs and cultural norms, lifestyle, income, and many other psychographic and demographic parameters. Additionally, it is important to consider online customers and the environment and culture of your website visitors as they often have a wider reach than brick-and-mortar locations. No matter the location, you may have to acknowledge cultural differences if you decide to change the way you do business, or if you plan to expand online, or to another region.
The targeted customer for your business was likely determined by who your business would like to attract. You should target your marketing efforts toward those individuals and businesses who would most likely utilize your products or services. If you want all customers and ethnicities to purchase services from your company, you may need to analyze your marketing strategy and determine how to make it attractive for all groups and cultures. The best method to understanding your customers is to conduct marketing research, which is discussed later within this book.