The Importance Of Customer Profiling When Growing Your Business

March 13, 2023
Up Inc.

Importance Of Customer Profiling

Every company has an ideal consumer, but what are you doing to reach them? 75% of American consumers say that they're more likely to become loyal customers to brands that understand them on a personal level.

At A Glance

  • 60% of consumers report that they will become repeat buyers after a personalized purchasing experience
  • 85% of customers want to experience proactive communication and contact from a business
  • It can cost up to 7x more to acquire new customers than to retain current customers
  • 75% of American consumers say that they're more likely to be loyal customers to brands that understand them on a personal level
  • 80% of consumers say that businesses earn their trust and money when they offer personalized experiences
  • 65% of survey respondents said they would become long-term customers of a brand if they could provide positive experiences throughout the customer journey
  • 86% of buyers are willing to pay more for great customer experiences
  • Customers are 2.4x more likely to keep doing business with a company if they receive prompt or quick support with their problems
  • 81% of organizations cite consumer experience as a competitive differentiator
  • Businesses that prioritize consumer experience have a revenue increase of 4-8% higher than their competitors

That means you have a lot of legwork to catch up on. Luckily, the process of customer profiling allows you to identify and leverage what your customers want while making them feel like you understand them as a brand.

Below, we'll cover everything you need to know about customer profiling, including how to outline your ideal customers, describe (in detail) what you want them to do, and incorporate this process into your overall marketing strategy. With these strategies, you'll start reaching those ideal customers in no time.

See Related: 14 Reasons Why Your Business Needs SEO In 2023

What Is Customer Profiling?

Customer profiling is a process that involves primarily gathering information on current customers as well as ideal customers. From this information, you can create customer profiles that give you greater insights into who your ideal customer is and why they behave the way they do.

Many tend to confuse customer profiling with establishing your "target market." But we find that process is far too general.

For businesses to reap the true benefits of customer profiling, they need to establish an accurate customer profile through which they may create a great customer journey.

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Customer Profile Vs. Buyer Persona

Another misconception businesses make is that consumer profiles are the same as buyer personas. But let’s break each of these down a bit. 

Customer profiles center on the types of customers who will absolutely buy your product. These profiles are often used at the beginning of the sales funnel in order to enact lead generation.

A buyer persona, on the other hand, has more to do with the kind of customer you want to reach. This type of customer profiling is used throughout the funnel to describe the buying patterns of existing customers within your customer profiles. Make sense?

If not, don't worry. Our team at Up Inc. will be able to lead you through the process seamlessly. As a leading Los Angeles SEO company, we're experts on how to create the perfect customer profile for you and your business.

Creating Customer Profiles

Creating customer profiles allows you to dig deeper into your marketing efforts. In constructing these customer profiles, you'll be able to categorize clients by:

  • Demographics (age, gender, marital status, education, ethnicity, profession, etc.)
  • Geographics (location, city, state, country, postal code, etc.)
  • Psychographics (interests, opinions, priorities, habits, lifestyles, etc.)
  • Behavior (impulse purchases, habitual purchases, variety-seeking purchases, etc.)
  • Buying Patterns (frequency of buying pattern, what they buy, etc.)

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Top Benefits Of Customer Profiling

The importance of customer profiling cannot be understated. Here are just a couple of the benefits you can expect from diving deep into your customer base.

#1. Allows You To Establish Your Ideal Customer

If you're a business, you don't want to waste your time selling to the wrong people. You want to know who your ideal client is and how you can tailor your services to most effectively resonate with them.

There's no point in trying to make loyal customers out of folks who simply aren't interested. Instead, client profiling allows you to focus your energy all toward real target customers who are already interested in what you have to offer.

Honing in on your ideal customer also makes it easier for your marketing team. Without having to draw such broad strokes in their marketing efforts, they can focus on a specific group of customers and make their customer experience all the more effective.

#2. Helps You Create Information Relevant To Your Target Audience

Creating relevant content for your target audience is where your marketing strategy needs to hone in. Customers want to know that they're being treated like VIPs.

They don't want to feel like they are a part of a marketing scheme that glances over them as individuals. Instead, customer profiling allows you to become more attentive to customers' wants and needs. And that can do wonders for your business.

60% of consumers report that they will become repeat buyers after a personalized purchasing experience.

This means that customers want to be catered to! When you give them the VIP service they deserve, they'll be more likely to come back and refer friends too.

All you need to do is gather information on your customers, tailor your marketing messages to them, and come out the other side with happy customers.

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#3. Makes Your Marketing Messages More Effective

Knowing your customer profile gives you an advantage in so many different ways. But perhaps the most advantageous of them all is understanding how to leverage your messaging to the right customers.

85% of customers want to experience proactive communication and contact from a business.

So it's up to your marketing strategies to meet them at the very least halfway.

Understanding your ideal customer profile makes marketing efforts that much easier. You know exactly how your ideal client will engage with your products and services. Now, you just have to make your messaging reflect exactly that.

Bonus: 13 Benefits Of Blogging For Business Owners In 2023

#4. Lowers Your Customer Acquisition Cost (CAC)

If you work in business, then you already know that CAC is the amount of money spent on marketing and advertising campaigns to attract one new customer.

But did you know that it can cost up to 7x more to acquire new customers than to retain current customers? That is if your business doesn't have a client profiling process.

Because when you have a customer profile, you know how to better target your campaigns. Your target customer becomes easier to acquire when you know who they are and what they're looking for.

This isn't to say that customer profiling can't also strengthen your relationship with existing customers too.

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#5. Strengthens Your Relationship With Existing Customers

Once you enact the customer profiling process, it's that much easier to give your existing customers the great customer experience they've been yearning for.

75% of American consumers say that they're more likely to be loyal customers to brands that understand them on a personal level.

Understanding customers on a personal level is literally what customer profiling allows you to do. While customer profiling may consist of gathering customers' common characteristics and dividing them into different clusters, this process goes hand in hand with both customer loyalty and customer experience.

Clients may have come to you for an initial low cost or maybe due to a particularly effective sales marketing message. But in the end, they'll only hang around if you keep on delivering the same level of excellence.

#6. Helps You Develop More Loyal Customers

Knowing what makes customers buy your product or service is yet another way to develop more loyal consumers. Businesses that know their customers can tailor their products and services to be more personalized and empathetic.

80% of consumers say that businesses earn their trust and money when they offer personalized experiences. And customer profiling makes marketing all the more personal.

That's because you've taken the time, as a business, to get inside the mind of the customer. You know their pain points, their points of view, and most importantly, why they keep returning to your product or service time and time again.

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#7. Enhances Your Ability To Reach Potential Customers

Customer profiling is like a compass. Once you know which direction to look for new customers and new leads, it's so much easier to rally your sales team and establish your target market.

To make your customer profiling process even richer, you can conduct customer interviews. In the customers' view, this makes for a more personalized product or service.

And from a business point of view, you're able to hear from customers themselves what kind of marketing tactics have worked. This can help to inform future business decisions and help you create a more personalized experience for customers.

Plus, 65% of survey respondents said they would become long-term customers of a brand if that brand couple provide positive experiences throughout the customer journey.

#8. Improves Your Customer Experience

The best products and services come with solutions before the customer even states their pain point. And your business can do that with customer profiling.

With 86% of buyers willing to pay more for great customer experiences, it's safe to say that customer profiling is the least you can do as a business to prepare for their pain points.

As consumers, they want to know not only that your services can benefit them. They also want to know that you, as a company, care about them, as people.

Customer profiles in marketing have made great strides to remind consumers that they are more than just a number to a company. They are real people seeking out real solutions. And your services just happen to provide those solutions.

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#9. Allows For Proper Analysis Of Data-Driven Marketing Strategy

One of the best parts about customer profiling is that it's all built on data. This makes it easy to track said data so you can mark either progress or areas of improvement needed within your marketing strategy.

Data-driven customer profiling also allows you to tweak sales plans in real-time to meet the needs and expectations of customers.

Customers are 2.4x more likely to keep doing business with a brand if they receive prompt or quick support with their problems.

So it really is in your best interests to track this data and see how sales can more effectively reach customers and create solutions for their problems.

#10. Helps You Meet Sales Goals Faster

Meeting sales goals and exceeding them is the dream of every business. But your services will only go so far if you cater to a broad group of people - most of whom you're not sure how they'll react.

That's how profiling your customers based on their behaviors, goals, interests, and more is vital to your company's financial success.

81% of organizations cite client experience as a competitive differentiator. And businesses that prioritize client experience have a revenue increase of 4-8% higher than their competitors.

In other words, every business is looking to woo customers because they know that it directly feeds into their revenue stream. Profiling your clients isn't just a way to get to know them better.

It's a tangible source of profit growth. But we get that this whole process can seem overwhelming to some. That's where we come in.

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The Importance Of Customer Profiling

At Up Inc., we understand the importance of client profiling. After all, as a business, you want to know that your efforts are being directed toward sustainable growth models, right?

With our unique formulation of how to target the right clients and optimize your online business to meet Google's standards, Up Inc. is fully equipped to set you and your business up for success.

And if you don't believe us, just look at our results.

In the past 12 months alone, we managed to increase a luxury skincare company's organic visitor growth by 300%, raking in $98,980 in organic sales.

But those numbers only skyrocketed because we knew exactly who to target in our marketing efforts. As we said before, clients like to be catered to.

They want to receive that VIP treatment and they deserve to know that you care about them as an organization. By profiling your client base, you can delve deeper into each customer's pain points and needs, while delivering them the services they want, all the while making for a happy, healthy business model. 

Keep Reading: Paid Vs. Organic Media: What's Best For You?

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Up Inc. eCommerce Agency is a digital marketing agency based in Los Angeles, CA. Founded in 2021, Up Inc. specializes in eCommerce, generating growth for brands by focusing on visibility, customer loyalty, and digital revenue. For more SEO tips and industry insights, follow us on FacebookInstagram, and LinkedIn.

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