Customer profiling is the most important aspect in the marketing sector, that means the analysis of an ideal customer. Customer profiling is used to make better business decisions and this approach provide detailed information about the customers in all respective phases like demographic, geographic and behavioral characteristics. Customer profiling is the best strategy to accomplish and profitable by enhancing the better bond with the existing customers. This technique included with normal and complex strategies.
Customer profiling initially starts with gathering information from the existing customers, what satisfy them the most. This information will figure out the new perspectives with matching profiles and also used to identify the low valued customers.
Customer profiling is categorized based on the influential variables present in their profile
Based on profession customer profiles are classified into two categories:
High-quality profiles and behavioral profiles are two categories and this help in identifying the ideal profile. Customer profiling approach is beneficial to understand customer interest and desire.
Customer profiling model has different classification and measurement of customers. Classification is entirely based on the income, age, and location. These types of fields are classified in the customer profiling model.
In first category high-quality profiles that make good revenue in society. These profiles assist suppliers to enchant customers in the different stages of the projects. The high profiles will have the interest within the organization who is involved in deciding matter or content of websites.
The second profile is represented as behavioral profiles, these behavioral profiles illustrate customer relationship in future. Questions arise in these behavioral profiles, will the customer buy? Will customer visit again? these questions are the potential step in retaining and increasing the new customers and business values. The behavioral profiles will have a more prominence than the demographic. To decide the ideal profile, a combination of these both high quality and behavioral profiles will provide customer characteristics in an efficient way.
These are few steps for ideal profiling technique:
- Demographic and influential information should be collected from existing customers.
- Information gathered from the existing customers will be included in the database for each and every customer records.
- Attachment of more relevant information about the behavioral characteristics like recent purchase by the customer and more. This gathered information is included in their profiles.
- Implementation of different strategy and methods will provide the best and worst case of customers. All the data included in the database will help in the identifying the best and worst.
- All these variables are applied to non-customer profiles that will serve the important perspectives of the customers.
Product usage is one of the aspects in a profiling approach. Product usage will prove information about the customers and also helps in customer profiling. There few research strategies in the market:
ABC1: This is one of the profiling strategies and grouping technique. A is considered as the higher designation and B refers to second highest designation and C refers to the lower designation. C contains C1 and C2 where both come under the lower designation but C1 stands for junior managerial and C2 refers to skilled workers. D refers to semi-skilled and unskilled workers and E refers to everyone entirely dependent on public support. This grouping procedure can be considered within the family.
ACORN: In this profiling technique, geodemographic is segmented based on the residential areas. Geodemographic profiles are integrated outcome of both demographic and geographic.
There are 5 sections in the ACORN research technique.
Section 1 – Wealthy achievers
Section 2 – Urban prosperity
Section 3 – Comfortably off
Section 4 – Moderate means
Section 5- Hard pressed.
After this profiling process customers are segmented into different groups based on segmentation variables. Every customer will have their own preferences and requirements about the product. It is difficult for suppliers to handle individual customers. They group customers into different segments respective with a common interest.
Wrong and invalid information passed into profiles, while profiling reflects unworthy result. This may lead to customer dissatisfaction and worthless work. Entire information should be validated and must be corrected before profiling process is executed. Customer profiling is a useful strategy totally based on research techniques.
Analysis of customer lifestyle to create a customer profile is obtained by psychographic technique. Research on this technique will help in estimating the customers perspective in all the sectors. This research will relate with the geographic and demographic to and separate into customer segments.