What is customer profiling?
You can use profiling as a means to discover more insight into your customers and to help you identify and gain a deeper understanding of your target market.
Profiling uses similar characteristics to group consumers into ‘types’ or ‘profiles’, who are likely to share certain habits, likes and interests.
The data that can be incorporated into these profiles includes:
- financial behaviour
- indebtedness and level of financial stress.
Once profiles have been built, they can be applied to your existing customer base, meaning you can fit all of your customers into the different detailed profiles. This allows you to manage your customer by understanding different groups of customers.
You can also use profiling to discover new customers. Once you understand which profiles your customer base is made up of, you can target prospects matching this profile to improve your marketing return on investment.
Profiling can help you:
- manage your customer database
- build stronger customer relationships
- create more successful marketing campaigns
- acquire the most profitable kinds of prospects.
Customer profiling should be undertaken to provide information and inform your team about your customers and to allow decisions to be made from the typical user’s perspective, or to assist the team in making customer-centred decisions, which will result in marketing that better meets the customer’s needs and expectations, and is therefore more likely to succeed.